Money does not guarantee happiness or satisfaction, but smart money management can prevent stress and worry. Not having enough money can cause a lot of stress and sleepless nights. Many people’s finances are a total mess, so it’s no wonder that they report a low quality of life. Take a look at the advice below to stabilize your finances and spare yourself that sort of irritation.
Writing down the amount you spend each day can be helpful in understanding where you spend your money. However, if you forget to keep up with it, it is easy to put it away and let it slip your mind. Purchase a big whiteboard and place it in a visible spot. Write down everything you spend on that. By seeing it frequently, it will stay fresh in your mind.
If you are going to invest your money, make sure you aren’t hit with massive fees. Investing brokers dealing with long term situations charge service fees. These fees play a huge role when it comes to your earnings. Brokers with unreasonably high commissions and funds that charge a lot for management are both things you should stay away from.
Use multiple credit cards instead of maxing out one. You will pay less interest on two payments than one maxed out card. The lower amount will be less of a burden to your credit, as long as you stay in control of both cards.
If collection agencies are after you, your debt will expire after some time if not repaid. Find out when your debts will become obsolete and refuse to pay back anyone who is trying to get money for an expired debt.
You should open a savings account where you can sock away money to use in the event of an emergency. Another incentive of saving money is that you can put away for a special gift for yourself, like a trip.
Use the leftover dollars accumulated throughout your day for building your savings. Put the single dollars in a piggy bank, home safe or even your savings account for an easy savings plan. Use those dollar bills and buy some lottery tickets.
Credit Card
Your FICO score is effected largely by credit cards. The higher your credit card balances are, the more of a negative impact they will have on your score. Paying the balance down can make it go back up. All balances should be under 20% of any stated credit card maximum limit.
Set up your debit card to pay down your credit card automatically during the last days of the month. This will make it a little harder to forget.
Over time, things sometimes happen outside of your control and you may find yourself in financial trouble even if you have always been careful. It is a good idea to become familiar with the late fees and extension period allowed. You will want to know all of the ins and out when you get into a lease.
It’s normal for people to make mistakes, and it happens to everyone, especially when it comes to finances. If a check bounces, you can request the fee be waived. This is usually a one-time courtesy that banks extend to good customers.
Make sure that you properly maintain all your financial information rather than waiting for a time where you actually need all that information. Collect important documents, like receipts and papers related to insurance and health care, and put them all in one place where you’ll be able to find them when you need them.
Avoiding debt to begin with is the best advice for good personal finances. A loan is necessary when buying a car or a house. For little things, however, the best policy is to pay for things as you buy them.
Have you thought about a credit card that offers rewards? You are a great candidate for such a card if you fully pay your balance regularly. A reward card can give you things like cash back and airline miles for making everyday purchases. Think about the type of rewards that would benefit you the most and compare them.
A great way to save money is to investigate the option of working out of your home. Commuting to a job can end up costing you a lot of money. Due to parking, gas and eating out, you probably spend half of your paycheck prior to getting paid.
Hopefully, you will be able to use the advice in this article to improve your household budget and invest in your future. It takes time and effort, sometimes much longer for others, but it’s worth it in the end to learn how to manage your money properly and avoid the stress of living financially unstable. These two factors will help contribute to improving you happiness.