Personal finances are not just about managing money. When you think about it, a lot of what it takes to manage money successfully comes down to common sense. A lot of people make mistakes when it comes to personal finances. Take your financial situation seriously to pave your way to financial stability and a happier life.
If the time isn’t right then do not sell. If a stock is earning a good amount, it is best to allow it to sit a little longer. You could look at the stocks that you own and determine which ones are not giving you profits and sell them if necessary.
If you bought a defective item, chances are you will notice it within a few weeks only. Extended warranties are hugely profitable for the business, but not for you.
Your car and house are likely to be the biggest purchases you will make. Your monthly payments on these items, including interest, usually makes up the biggest chunk of your budget. You can reduce the amount of interest you pay by increasing your monthly payment.
Health Insurance
Protect yourself financially with the best health insurance policy for you. Sooner or later, almost everyone needs medical care. Therefore, it is important to have good health insurance. It doesn’t take long for medical bills to add up, and even a minor health problem can be very costly. This can damage you financially if you’re not insured, so you have to take care of this now.
If you’re in a marriage, which ever one of you has the strongest credit rating should be the one applying for any loans and credit cards. If you currently have a bad credit rating, take some time to improve it by using a credit card and paying it off on time. You can share debt more equally with your spouse once you’ve improved your credit score.
Try to hold a garage sale, where you can sell all of your unwanted goods for additional cash. Let all of the neighbors know about the upcoming garage sale – one might even offer to sell items for them in exchange for a small commission. You can be creative at your garage sale to make a little extra income.
Use compact florescent bulbs in place of incandescent bulbs where you can. By replacing your regular bulbs with high efficiency CFL bulbs, you will lower your electricity bill, as well as help the environment. Compact florescent bulbs last a lot longer than their predecessor. This will help you save money on replacement bulbs.
If you travel by plane on a regular basis, it might be a good idea to get into a frequent flyer program. There are a number of credit cards that give free miles or a discount on air travel with purchases. It is also frequently possible to redeem frequent flier miles at many hotels where they may be good for a free room, or a discount on your booking.
Keep student loans to a minimum unless you are confident that you will be able to pay them back comfortably. If you are planning on sending your child to a private school, strongly consider other options that make financial sense.
Try to set up an automatic pay plan to pay credit card balances with a debit card every month. This way, even if you forget, you will not be late.
Cash Allowance
Allow yourself a weekly cash allowance to prevent splurging your savings wastefully. This cash allowance is perfect for little unneeded purchases. This is a good way to avoid overspending on items you do not really need while staying happy.
Put a large calendar on your wall, and map out your total monthly fixed payments, their due dates, and have all your billing cycles in a single convenient place. This reduces the likelihood that you will forget to make payments within the specified period. This is easier when you budget and you will avoid late fees.
Be aware on letters that arrive in your mail regarding changes done 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 the changes are not to your advantage, pay off the balance and close the account.
Keep tabs on your credit report. There are several ways to check your credit that are free. Be sure to check your credit report every year as a way to make sure that there aren’t an inaccuracies.
Personal finances vary greatly between individuals and you are the only person that really knows what works for you. With any luck, you now possess sufficient information to handle your financial situation with aplomb, and will soon reap the rewards of your wise decisions. Post reminders of the things you’ve learned in your home, wallet or desk. Take advantage of the advice contained in this article and you’ll start seeing positive results in no time at all.
