Becoming educated on finances is important for most aspects of life. Tough economic times taught our previous generations the value of saving money, living modestly, and being satisfied with what they had. Sadly, as a society, we don’t live that way anymore. With this article, read a few tips to make your money go father.
Use multiple credit cards instead of maxing out one. The interest should be a lot less on two or more cards than it would be on the one that is nearly maxed out. And besides, this will not damage your credit score as much, and even help you build it if you can manage wisely your two credit cards.
Try not to get too much money from a student loan, unless you’re able to repay it back. If you attend an expensive college before you have decided on a major, this may put you in debt that will be impossible to overcome.
Flexible Spending
Make sure you get those most out of the flexible spending account. Flexible spending accounts can help reduce your medical or childcare expenses. With such an account, you can deposit money directly, before it gets taxed. As some conditions are usually attached to these accounts, be sure to consult a tax professional.
To ensure timely credit card payments set up an automatic monthly bill pay through your bank. You may not be able to pay off the card completely, but pay what you agreed to on time to improve your credit rating. If you have an automatic debit set up, you do need not be concerned about the payment being late and if you have extra money you can always add that to the payment.
Consider applying for an overdraft program at your back if your monthly paycheck sometimes comes up just a little short at the end of the month. The nominal monthly fee is considerably less than the high charge that often accompanies an overdraft on your account.
Rule #1 of good personal finance is “income must exceed expenditures.” People who do this always end up in debt because the money they make has to go into repayment of debts. Know how much income you are bringing in and stick to a budget that is less than that figure.
Let your friends know about your current financial situation. This way, you won’t feel badly when they invite you out and you can’t afford it. Make sure that everyone is aware of your situation so that they do not take your actions personally. People mean well, but they won’t understand unless you speak up about your budget.
Consider your many complicated feelings about money. If you wish to make things better with your finances, that is not possible until you know the motivation for the financial things you have done. List out your beliefs about having money and material objects, and look for incidents in your past that shaped these ideas. This helps show you where you went wrong and helps to put you on a better path going forward.
Don’t fool yourself into thinking you are cutting costs by neglecting home or car maintenance. You might come across a costly issue you could have avoided by taking care of your car or your home regularly. In the long view, taking proper care of your possessions is going to save you more money.
Write down each cent you spend for an extended amount of time. If you can see where your money is going each week or month, you can determine what things are more deserving of your money and what things can be eliminated from your budget.
To save your money you may want to consider working from home. It can be costly to go into work every day! The cost of parking, lunches and gas will often cut your paycheck in half before you get it!
You should always have at least 10 dollars on you in cash. New laws state that you may have to spend a certain amount to be able to pay the bill with your credit card.
Make sure you do not repeat the same financial mistakes that you have made in the past. If it took you two or three years to eliminate your credit card debt, that experience could dissuade you from making the error of falling back into debt again. If you have had a job that pays you less than you feel you are worth, look at that as a learning experience to negotiate your income more at your next job. As you review your history of personal finances in your mind’s eye, realize that every lesson you can learn from your experiences is worthwhile. Make sure to learn from your lessons, so you will not be in a poor financial situation in time to come.
While you may not be happy in your current job, it’s better to have an income than none at all. Don’t quit your job until you have another one lined up.
If you have extra money at the end of the month, resist the urge to spend it and put it in your savings account instead. Avoid this problem by maintaining a strict budget, so you don’t put yourself back into a poor financial situation.
Compound interest can be a powerful force for improving finances, especially for those who take advantage of it early in life. Make an account just for savings, and automatically put a certain percentage of your earnings into it.
It’s important for everyone to understand personal finance. Tracking every penny that comes in and every penny that is spent makes managing finances a much simpler matter. Using these tips, you can reach your goals by making the most of your money.
