It’s not just about money when it comes to personal finance. It has more to do with common sense than any type of special training. Learning how to manage finances in the right way has to be learned and sometimes it takes few rough lessons to learn this well. You can live a less stressful, happier life. Read the article below for some advice to make that happen.
Keeping a written notebook on your daily expenses can be a real eye-opener into where your money is going. If you are writing things down in a journal and you slack off it will never work for you. Try writing things down on a whiteboard in your kitchen or somewhere else that is visible. It’s hard to overlook such a large board, so this can help your goal stay on the forefront of your mind.
Expensive products usually come with a limited warranty that covers them for 90 days to a year. Because they rarely have to pay them off, extended warranties are a safe bet for vendors, but for consumers, they are almost always a waste of time.
If you have collection agencies coming after you, you should be aware that your debt will eventually expire after a certain amount of time if it is not collected. Find out when your debts will become obsolete and refuse to pay back anyone who is trying to get money for an expired debt.
Try to negotiate some options when a debt collector contacts you for a payment. They may have purchased your debt for a low price. For this reason many will accept an amount less than what was originally owed. Use this to your advantage and pay off your debt for a low price.
Reducing the number of meals you eat at restaurants and fast food joints can be a great way to decrease your monthly expenses. You will save a lot of money if you just stay in and eat at home.
Credit Card
A credit card can a good alternative to a debit cards, if you pay it off in full each month. If you get approved for a credit card, stick to using it on essential items, such as groceries and gas for your car. Most credit cards offer some kind of rewards, like cash back on these items.
Make sure you get those most out of the flexible spending account. An FSA can mean serious savings if you wind up with medical bills or need to pay daycare. Flex spending accounts permit you to place pretax dollars into an account to pay for these types of expenses. However, it is best to consult a tax professional first, as there are usually various stipulations involved.
Consider whether items you are removing from your home might have value to another person. You can have a yard sale or bring items into a consignment shop to see whether you can get some money for them. There may be a hidden treasure in that inherited furniture or old dusty lamp that can add to ones overall net worth.
A member of your family who keeps an excellent budget, or happens to work in the finance industry, can be a great help when you need to learn how to budget your money. If one does not know anyone that has worked in financial services, a friend or family member who is very good with their finances may be able to offer some help.
You should set up your debit card to be able to automatically pay your credit card bill when the month is ending. You won’t have to worry anymore about forgetting your payment.
Make sure to check your portfolio on a yearly basis. By re-balancing your investments, you can be sure they reflect your goals and tolerance for risk. You will also be able to learn how to, or capitalize upon, buying low and selling high.
If your entire check is gone after paying the bills, look for non-essential places you can cut down on spending. If you’ve been eating out frequently, for example, this is probably not sustainable. However, if you just cut back half the dinners out every month, you can save money and still enjoy dining out.
The key to successful personal finance is a written budget. At the start of each month, make a budget that includes a list of each anticipated monthly expense. Some of the things to include on your budget may be car payments, food, house payments and phones. Try to remember every single expense, even ones that occur only occasionally. Once you have written all of your expenses down, figure out the total and compare that to your total income for the month. It’s important that your income is larger than your expenses.
Preparing food in your own kitchen, rather than dining in restaurants, can go a long way toward bettering your personal finances and helping you put away lots of money. Generally, the cost of a good meal for four people is around $30, if you cook at home. Even something as small as a pizza or takeout can pull more from your wallet than feeding a family of four!
Personal finance is different, as it varies from one person to another and only you could determine which one would work for you. Hopefully, after reading this article, you have acquired some good knowledge that will help you better manage your personal finances going forward. Keep reminders of the things you’ve learned in your desk, wallet or even your refrigerator door. Using these tips will be a positive thing!
