Maybe money can’t buy happiness, but it can certainly prevent debt-related stress and anxiety. Knowing we have enough money to meet our needs delivers a sense of stability and cuts down on sleepless nights. If you are feeling down, you might take a look at the condition of your personal finances, it can have a lot to do with how you are feeling and the quality of your life. Essentially, money does buy happiness, so read on to learn how to get your personal finances in better shape!
The key to total happiness and success is money management. Sources of profit need to be safeguarded and surplus capital should go into investments. Letting profits build up in anticipation of later, larger expenditures is alright, but you must keep in mind that liquid assets cost you in terms of investment opportunities passed up. Set goals for what you are going to hold onto as profit and which funds will be directed towards capital.
If you need the services of a broker, you should choose a professional that you can rely on. They should be honest and upfront with you, and you should check that they have glowing references. Being a beginner means you’ll have to take extra care to find a broker who understands your personal needs.
Stay tuned to the news in order to be aware of the global market. If you have money invested in stocks or currencies, you should also pay close attention to foreign news. If you decide to get involved in the stock market, make sure to keep up with world events.
The two biggest purchases you make are likely to be your home and car. A huge factor of your budget each month will be not only the payments, but the interest rates of these things. Pay them more quickly by paying extra or taking your tax refund and paying more on your balances.
Get a no-fee checking account. Online banks, credit unions and local banks are good options.
A credit card can a good alternative to a debit cards, if you pay it off in full each month. If you have a card that offers rewards, use it on your daily purchases, such as groceries and gas. Most credit cards offer some kind of rewards, like cash back on these items.
You should open a savings account where you can sock away money to use in the event of an emergency. Depending on your situation, you may choose to save in order to get out of debt or for a future expense.
Credit Card Balances
Your FICO score is determined in large part by your credit card balances. The higher your credit card balances are, the more of a negative impact they will have on your score. As you start to reduce your balance, your score will rise. Always try your best to keep your balance below 20% of the credit card’s maximum credit limit.
No matter how hard you plan, you may face financial difficulties some day. It is always smart to know the late fees associated with late rent payments, and the absolute final day payments are due before late charges accrue. Be aware of the terms prior to signing a one year lease.
Make sure that you only use the ATM of your institution to avoid fees and penalties. There are often fees for every transaction made with another ATM.
A good money saving tip is setting up automatic payments from your main checking account and have that go into a savings account which pays a higher interest. At first it may seem uncomfortable, but soon it will become another monthly bill and the savings account will grow.
Consider your feelings about money. You are not going to be able to improve your overall personal financial situation until you understand different choices you’ve made about money. Put some thought into your beliefs about money, spending and all the things you are interested in achieving and consider why you feel that way. If your current feelings are less than positive, you can now release them in favor of new more productive feelings.
Worth Keeping
Watch for letters that tell you about changes in your credit accounts. You legally must be notified 45 days before any changes are made. Read the changes when you get the notice and determine if the account is worth keeping. If you do not think the account is worth keeping, pay off whatever amount you need to and then close it.
If you have the skills to do your own home improvement, you should not pay someone else. There are a wide variety of resources available that will provide the specific steps you must take in order to complete the necessary home improvements.
You should balance your portfolio once a year. Re-balancing can help get investments realigned with your risk tolerance and goals. Rebalancing also reminds a person to sell high and buy low.
If you dislike the fraction of your pay left over after the bills are taken care of, look for ways to save by spending less, instead of by cutting out expenditures entirely. For instance, it could be hard to stop eating out. Perhaps, you could dine out less often to save money and truly enjoy the occasions where you go out.
This article will have hopefully helped you understand more about finances and how to manage them. It takes time, effort, and a willingness to change to better your finances, but it will be better in the future to have better organized finances and a lot less stress. These factors will help add to you having improved happiness.