Trouble-free Personal Finance Strategies - Further Examination
Personal finances should be a concern for any adult who must pay for bills, including housing, electricity, food or gas. Managing a list of what you must pay for and how much you make each month, can make it easier to see where your money goes, especially with a budget.
If you have managed your finances well enough to own a home and have a retirement account, don't jeopardize those by borrowing against them later. If you borrow against your home and can't repay it, you could lose your home; the same is true for your retirement fund. Borrow against them only in dire situations.
When purchasing a vehicle, always make sure you create a budget beforehand and stick to it religiously. Your personal finances can easily get out of control if you purchase a car or truck outside of your range. You might have to sacrifice a little of luxury, but you'll more than make it up by remaining fiscally sound.
Once you have saved enough money, invest it in a way that you are sure it will grow. Find a good mutual fund, and buy as many shares as you can. Then, add to the amount on a regular basis. Mutual funds are very secure, and you usually do not have to risk losing anything, by investing in them.
Make sure you pay your utility bills and house payments on time, every month. These are top priority payments to make and you will avoid late fees by making a payment by the due date. Utility companies are also known to report late payments to credit reporting agencies, which can affect your credit.
When it comes to paying off your loans and credit card balances, always try to pay as much over the monthly minimum as is possible. While this may decrease your amount of free cash every month, it will ultimately result in significant increases in savings over a period of many months or a year.
Set a goal of paying yourself first, ideally at least 10% of your take home pay. Saving for the future is smart for many reasons. It provides you with both an emergency and retirement fund. It also gives you money to invest so that you can increase your net worth. Always make it a priority.
Make your personal finance record-keeping more efficient and easy to read by marking debits and payments in your check registry using a bold, red ink pen. This will make you less likely to overlook withdrawals and debits and will also allow you to quickly verify all expenses as you balance your checkbook.
To truly take advantage of an emergency fund, keep it close but not too close. Three to six months pay should be sitting in an account somewhere so that an unexpected expense is not the end of the world. However, it should be money in an easily accessible interest bearing account, but not in your primary checking account where you can kill it with your debit card in one day.
Think about getting rid of your landline. If you're like most people you don't even use your "regular" phoneline to make the bulk of your telephone calls. If you don't need the landline, get rid of it. This will keep money in your pocket and chances are you won't even miss the landline.
While it is not a good idea to use your credit cards too often, you also, do not want them to remain inactive for too long. An inactive card will not help your credit rating. Many companies will cancel a card if it has not been used for a while, which can hurt your credit score.
If you are suffering financially and feel that you will never be able to dig your way out of debt, you should consider personal bankruptcy. Bankruptcy is your legal right and is a great way to eliminate the stress and anxiety of overwhelming debt. This is why it is called a "fresh start."
Make a commitment to yourself to be paid what your skills are worth. This is tough for many people, as it usually means an uncomfortable conversation with employers. But, your skills have a market value, and you should be benefitting from them! Do your research and see what other comparable jobs are paying.
As you learned in this article, changing your financial situation is often a matter of learning what to do and putting it into practice. Hopefully, your finances don't seem as hard or as scary now as they did before you began reading. Put your new knowledge into effect and watch your finances improve.
by: Nicolas Hancock