Managing your money does not require a degree in finance. A bit of common sense combined with some proven techniques will let you save money while building wealth.
If you want to save money and time consider purchasing lean protein in very large quantities. Bulk purchases are excellent if you plan to use all the products you bought. You will be able to save time by cooking enough meals using this meat that can last you for a week.
You personal financial health depends on keeping your debt under control. While education and a mortgage are two worthwhile reasons to go into debt, there are very few other reasons why you should use credit. Borrowing less means you have less money to pay towards fees and interest.
Credit Card
Don’t keep using a credit card if you are finding it hard to pay off its balance. Avoid charging things to your credit card by finding another way to pay for your expenses. Pay off your credit card, and then pay it off in full each month if you start using it again.
If you are in collections, then your debt will someday be written off, even if you don’t pay. There are consequences to this, however, and you need to be sure you are ready to face them. Consult an expert about the statute of limitation laws pertaining to debts in your state; you may not have to pay anything depending on how much time has gone by.
Every time you get a check, save some money from it immediately. If you try to save the money after the month has gone by, you will find that you do not have any money left. Knowing how much money is already used makes budgeting easier. There will be less temptation to spend it and more encouragement to save it.
Make sure that you will end up in a secure financial situation before you pile up a great deal of debt with student loans. Getting into that private school and being unsure of your future will more than likely put you into debt for a very long time, so be very careful about this.
Look into all of the services which your bank offers online, like alerts. You can set your account to notify you automatically, via phone or email, when certain things happen to your account. Having alerts in place for low balance and large purchases can prevent you from suffering overdraft fees, and let you identify fraud quickly.
If you want to reduce your Christmas budget, consider fashioning you own homemade Christmas gifts. This will reduce the amount that you spend in department stores, and can save you hundreds of dollars during the holiday season. You can also reduce costs and boost your net worth by being creative.
Your FICO score is determined in large part by your credit card balance. The more you owe, the worse your score will become. When you pay the balance down the score will begin to climb. Try to keep the balance at 20% or less than the maximum credit allowed.
To make sure your credit cards are paid on time, set up automatic bill pay at your bank. Not being able to pay your credit card bill in full each month is not as important if you are at least paying the minimum on time to establish a good payment history. Setting up automatic payments is an easy way to ensure that you make every payment on time.
Interest Rates
To quickly lower your debt, pay off the accounts that carry the highest interest rates first. You may feel that it’s better to pay off your debts evenly, but paying off high interest debts as soon as possible is more cost efficient in the long run. Many economists expect credit card interest rates to continue climbing in the near future, so this step is critical.
If you live paycheck to paycheck and coming up short more often than not, you should consider an overdraft protection plan at your bank. It may cost a few bucks, but the cost is usually lower than having to pay basic overdrawn fees.
Setting your bank account to automatically withdraw a set amount of funds into a high-interest savings account can be a good idea. It may be an inconvenience at first. It will, however, pay off handsomely in the future.
Don’t start new debts, and pay your old debts down diligently. It’s easy to be tempted, but keep the bigger goal in mind. Decrease your debt slowly without adding on more! If you are consistent, you will reach your financial goals and balance much easier.
Clearly, it is possible for anyone to increase his or her net worth, live within his or her means and enjoy the pleasant financial life he or she craves. If you combine your common sense with the beneficial financial advice presented in this article, you can devise a budget that’s easy to maintain, decrease or eliminate your debt, develop a savings plan, and gain control of your personal finances before they gain control of you.
