Living on a budget is not easy, especially if you are a college student or young adult, with little experience. If you want to be financially stable you have to avoid these things and properly manage your finances.
Pay attention to timing when thinking about selling your stocks. If a stock is earning a good amount, it is best to allow it to sit a little longer. You can certainly take a second look at stocks that are underperforming and think about moving some of those around.
In these turbulent times, spreading any savings you have around multiple locations is sound strategy. Keep some of your money in your savings account and some in your checking account. Invest some in gold, stocks and even in high-interest accounts. These tips are the best solution to maintain a positive financial situation.
You should write down every penny you spend to find where you are blowing the most money. Make sure, however, that you do not tuck your notebook away and forget about it. A good idea is to get a large whiteboard for use in your office or home as a reminder to keep listing your expenditures. It will be front and center during your daily activities and hard to avoid.
Buying items on sale can add up to big budget savings. Stop buying certain brands unless there are coupons for them. For example, if Coke is your brand of choice but Pepsi is offering a one dollar off coupon, the Pepsi choice will save you money.
The standard warranty is usually either 90 days or a year, which is plenty of time for most defective parts to quit on you. You lose out when purchasing an extended warranty; however, the business benefits greatly.
Avoid excessive fees when investing. Long-term investment comes with a variety of fees. These fees will take away from the money that you earn because they are paid before you get your earnings. Most of your investment funds should go toward your actual investment, not high commissions or management fees.
Credit Cards
One best practice for maintaining healthy credit is to only use two to four different credit cards. Using a single credit card will delay the process of building your credit, while having a large amount of credit cards can be a potential indicator of poor financial management. Stick with two to three cards, and be mindful of how you use them in order to build a solid credit history.
It is important that you establish some structure to ensure the security of your financial future. A concrete plan can motivate and guide you, and ensure you work hard and spend money frugally.
Save money from each of your checks. Somehow, there never seems to be anything left to save if you wait. Once the money is put in a separate account, it reduces the temptation to spend, since you’ve compartmentalized it in a way that makes it psychologically “less available.”
If you fly a lot, you may find it a worthy investment to enter a frequent flier program. There are a lot of credit card companies that reward you with free or reduced airfare for making certain purchases. Your frequent flier miles will constantly increase and are redeemable at thousands of hotels or airlines across the world.
Get a no-fee checking account. Look into local community banks, online banks and credit unions.
Avoid incurring large debt through student loans, unless you are sure you can handle it in the not too distant future. If you go to an expensive school while you’re unsure of a career path, this can find you in deep debt down the road.
If somebody is thinking about getting something that costs too much they may want to ask their family to help them out. If the whole family can use it, they should pool their money in order to buy it.
One way to save on bank fees is to only use the ATM’s at your financial institution. Financial institutions often levy hefty per-transaction and monthly fees for using the ATM of other banks, and these fees can add up very quickly.
Saving Money
You are not saving money if you are skipping the necessary maintenance on your home or vehicle. By keeping these personal assets in good condition with the proper upkeep, you minimize the risk of having to make a major repair down the road. If you properly take of your possessions, you are saving money.
By writing down a budget that keeps you from spending more than you earn, you can avoid piling up debts and unpaid bills. If you use the tips you read here, you won’t have to deal with debt collection calls or being constantly in debt.