If you are like many people, you feel it is near impossible to manage your personal finances without the aid of a professional. However, hiring a financial adviser is only necessary if you are not properly education on finances. As far as dealing with personal finances goes, knowledge is power. The following article will provide you with helpful information that can improve your financial situation.
Consider using a re-loadable check card. If the thought of your credit or debit cards getting lost or stolen on your trip makes you too nervous, you can always use re-loadable check cards. You can find them at most retail stores. It is arguably safer and easier than carrying around cash.
Concentrate your loans into one simple loan to fortify your personal finance goal. Not only can this make keeping track of where all your money is going, but also it gives you the added bonus of not having to pay interest rates to a variety of places. One simple interest rate beats four to five interest rates at other places.
The envelope system is a tried and true budgeting technique that can work well for those who have a hard time staying within their budget. Cash out your paycheck at each pay period and put a predetermined amount of cash into each envelope for each line on your budget. You can then only spend the cash that you have for each item. It prevents you from overspending as you have a visual for what is left.
Get a high yield savings account. Your rainy day funds or emergency savings should be stored in a savings account with the highest interest rate you can find. Do not use CD’s or other term savings which would penalize you for taking your money out early. These accounts need to be liquid in case you need to use them for emergencies.
Maintain at least two different bank accounts to help structure your finances. One account should be dedicated to your income and fixed and variable expenses. The other account should be used only for monthly savings, which should be spent only for emergencies or planned expenses.
In regards to your personal finances, one of the worst things that you can do is gamble a lot of money at a casino. Casinos are geared to have an advantage, as you can lose your life savings on a bad day. If you do go to the casino, bring a couple hundred dollars in and leave your credit and debit cards behind.
If you come across extra money, whether you got a bonus at work or won the lottery and you have debts, pay the debts first. It’s tempting to use that money to splurge on such things as, new gadgets, eating out or other luxuries, but you should avoid that temptation. You’ll do yourself more favors, if you use that money to pay your debts. If you have money left after you pay your debts, then you can splurge.
Try setting up an automatic bill payment through your bank to ensure you pay on time. Even if you cannot pay credit cards off completely, paying them on time establishes a positive payment history. If you sign up for automatic debits, you will have no concerns about payments being late. You can always pay a little extra if you like.
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.
One way to help protect your budget is to enroll in overdraft protection through your financial institution. This minimal fee can save you a lot of money on overdraft fees in the long run.
If you find that all of your bills are due at roughly the same time of the month, contact your various providers and see what options are available for you to change your monthly due dates. This avoids spreading your paychecks too thin, during each pay period and allows you to manage your cash flow more efficiently.
The first step in managing your personal finance is to pay down your debt. Debt carries interest, and the longer you hold on to debt, the more interest you will have to pay. You may also pay penaties if payments are overdue. So to rein in the runaway interests, pay off your debts as soon as possible. When you have done that, then you can start saving.
Avoid window shopping. If your personal finances are tight, or if you are trying to follow a strict budget, avoid window shopping, as it is likely to lead to impulse purchases. Think about whether you really need to make the purchase, and if possible, follow the 24-hour rule. Go home, and think about the item overnight. If you still believe it’s necessary, you won’t feel as guilty when you purchase it, as it’s no longer an ‘impulse’ buy.
Learn to be selective in what you want to spend money on. Obviously, if you spend money on something, you will have less to spend on other things. It may help to carry a copy of your budget with you. You can do this on most cell phones. Taking a quick look at your budget can save you from splurging on unimportant items. It helps you become disciplined in how you spend your limited resources.
As you can see by now, intelligently managing your finances requires a certain amount of education on the subject. If you know how to manage money, you can limit the amount of money you spend on useless purchases and instead use your money to improve your financial situation. Read through this article again, use the tips on your financial situation, and you may be able to become financially secure in no time.
