It is not necessary to become a financial wiz to take control of your own personal finances. With some money management tips and a bit of common sense, you will learn to thrive within your means and to increase your personal wealth as well.
Stay aware of what’s going on in the world so that you know when the market may be changing globally. Many Americans don’t pay attention to news outside of the United States, but this can be a mistake if you trade currencies or have significant investments. Knowing what is going on in the world helps you fine-tune your strategy and to make educated market predictions.
In today’s volatile economy, it isn’t a bad idea to use multiple savings vehicles for your extra cash. Save your money in a few different kinds of accounts so you are covered. Utilize a variety of these vehicles for keeping your money safe and diversified.
Do not sell stocks at the wrong time! If your stock is performing well, hold off on making any moves. Take a look at stocks that are performing less well, and think about making some changes with them.
Because the times are quite volatile, it can be a good idea to keep your savings in a number of smaller accounts. Put some of your money into traditional checking and savings accounts, but also invest some in stocks, accounts yielding higher interest, and even gold. These tips are the best solution to maintain a positive financial situation.
When investing, stay away from large fees. Most brokers have hefty fees for the services that they render. These fees will take away from the money that you earn because they are paid before you get your earnings. Most of your investment funds should go toward your actual investment, not high commissions or management fees.
If a credit repair company guarantees that they can improve your credit history, be very wary. Many companies will make blanket statements about their ability to repair your history. This is a total lie, since everyone’s credit situation and different, and some are easier to address than others. It’s simply not a case of ‘one size fits all’ when it comes to credit repairs, so there can be no guarantee of success.
Don’t pay big fees to invest your money. Full service brokers levy fees for services they provide. These fees can take a big bite of your returns, though, if they are large. It’s important to research brokers before you use them. Find out what their fees are as well as any other costs associated with working with them.
Married couples should have whichever spouse has the best credit to apply for loans. Those with bad credit should build their score with credit cards that can be paid off easily. Once both of you have good credit scores, you can jointly apply for loans that evenly share your debt.
Make a plan of what you hope to achieve financially in the future, so that you have some goals to aim for. When you know specifically what you are saving for, it is a lot easier to stick to your budget and be motivated to reach your goals as soon as you can.
Some fluctuations in credit scores are normal. Don’t panic if you notice a slight drop in your score. Repairing bad credit to get your personal finances in order can be well worth the time and effort.
Replace older incandescent bulbs with high-efficiency CFL bulbs. By replacing your regular bulbs with high efficiency CFL bulbs, you will lower your electricity bill, as well as help the environment. CFL bulbs have the added benefit of lasting a much longer time than traditional bulbs. You will end up purchasing fewer bulbs and therefore saving money.
Find a bank that offers free checking. Look into local community banks, online banks and credit unions.
Some people say that “if you don’t play the lottery, you won’t win.” In fact, the only way to win the lottery is not to play and put the money in a bank account instead. Doing so guarantees that your assets are increasing and carries no added risk.
Change over to a checking account that is free. You can try banks in your area or even a credit union.
Remember that every penny you earn or spend should be included in your monthly budget. Avoid making impulse purchases on unnecessary items like magazines and lottery tickets.
Allow yourself a set dollar amount every week for the small luxuries you enjoy. You can use this cash for whatever you want (new clothes, a movie, etc.) though once you spend it all you can not get more until it is time to pay yourself. This is a great compromise that lets you stick to your budget and still indulge yourself on occasion.
If you want to have a credit card but are younger than 21, know that rules have changed recently. In previous times, college students were freely given credit cards with no restrictions. These days, you must be able to prove that you have income, or use someone to co-sign. Read the literature of a credit card offer before you apply for it.
If you want to get rid of debt fast, you have to pay off your credit card debt with high interest first. This saves you big money and will leave you with the smaller interest rates to deal with. Since credit rates will rise in the next few years, this is an action that you should take very soon.
Avoid ATM fees by using the ATM of your bank. Many banks charge fees if you use the ATM of another bank. They will charge you every month for using other ATMs.
Make sure your credit card is payed through an automatic system via your bank. When you can’t completely get rid of your credit card debt, making regular monthly payments will improve your credit history. By setting up an automatic debit from your bank account, this will ensure that your payments are on time, and you can pay a little extra each month if you are able.
Make a super-large wall chart that shows all of your minimums due and due dates. This way, you’ll be able to make timely payments, even if you don’t get paper bills in the mail. This can help you budget better and avoid late fees.
Keeping your tax information well organized throughout the year will make tax time less stressful. Keep all your important documents such as receipts or insurance papers in one file so you can access them easily.
You will be a good trader if you know when you should let your profits keep running. Be careful not to let them run too much, however, as this can be a risky strategy. Once you figure out how to make trades, you will also figure out the proper point at which to remove your money from the mix.
A good money saving tip is setting up automatic payments from your main checking account and have that go into a savings account which pays a higher interest. At first, this may be uncomfortable, but after a few months, you’ll treat it like another bill and your savings will grow to an impressive amount in no time.
Consider using a flexible spending medical account. The money you set aside is deducted before taxes, so you save money.
It may take a little more effort and distance, but you can save a great deal of money over time by using only the ATMs of your bank, credit union, or thrift. There are often fees for every transaction made with another ATM.
Save a few dollars every day. Instead of overpaying for groceries every single week, use coupons, shop around and find the best deals. Try substituting food that is on sale.
Worth Keeping
If you prefer to manage your finances through technology, use an online account management tool, instead of a paper checkbook. Popular websites and software programs make it simple and efficient to categorize expenses, calculate interest, track cash flows, and create a detailed, reasonable monthly budget and savings plan.
Watch for mailings that will highlight changes in your credit account. The law says that they have to let you know 45 days ahead of time. Read over changes and see if they are worth keeping the account for. If you decide it’s not worth keeping, then it’s time to pay the bill and close the account.
It is possible to live within your means, increase your worth and live a happy, healthy financial life. Common sense combined with this helpful advice can allow you to create a budget, lower your debt, put money aside and control your finances.
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. If you use this method, you won’t miss any payments even if your bill is lost in the mail or you don’t receive it for some other reason. This can help you budget better and avoid late fees.
