Pointer About Personal Finance That Will Help You Better Yourself

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    07-Aug-2015

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<ol><li> 1. Pointer About Personal Finance That Will Help You Better Yourself A lot of people have trouble managing their finances because they do not keep track of what their spending money on. In order to be financially sound, you should be educated on the different ways to help manage your money. The following article offers some excellent tips that will show different ways to keep tabs on where your money is going. Do not sell stocks at the wrong time! If a stock is making you money, and increasing in value, avoid selling it too soon. Take a look at stocks that are performing less well, and think about making some changes with them. Paying in full instead of getting into debt is the better option if you can manage it. While some debt is inescapable, such as mortgages and education loans, you should work hard to avoid toxic debt like credit cards. Loans and credit cards charge interest and fees; therefore, it is important to try not to borrow unless it is absolutely necessary. Electronics are extremely expensive and can set you back a lot of money if you do not get a good deal. Try to do all of your electronics shopping online, as you will find great deals and auctions, which will allow you to choose the price that you want to pay. Set up a deduction from your paycheck to automatically go to your savings account. Saving is much easier when it requires no further conscious action. As you begin to think of your spendable income as the new, smaller amount, you can adjust your budget accordingly while your savings keep growing with every deposit. When it comes to maintaining your financial health, one of the most important things you can do for yourself is establish an emergency fund. Having an emergency fund will help you avoid sliding into debt in the event you or your spouse loses your job, needs medical care or has to face an unexpected crisis. Setting up an emergency fund is not hard to do, but requires some discipline. Figure out what your monthly expenses are and set a goal to save 6-8 months of funds in an account you can easily access if needed. Plan to save a full 12 months of funds if you are self-employed. When you get paid, the first thing you need to do is put some money into savings. If you plan to save whatever money is left at the end of the month, it will never happen. Additionally, setting it aside right away prevents you from spending the money on things you do not need. You will know what you need money for before your next check comes. Keep your credit rating high. More and more companies are using your credit rating as a basis for your insurance premiums. If your credit is poor, your premiums will be high, regardless of how safe you or your vehicle are. Insurance companies want to be sure that they will be paid and poor credit makes them wonder. Find a reasonable budget to go by, so you can track what you are spending and save money. It doesn't matter how much money you make, you should always know what you are spending. If you follow a budget you will be more inclined to stick to it. This will help you save more money. </li><li> 2. Never withdraw a cash advance from your credit card. This option only rears its head when you are desperate for cash. There are always better ways to get it. Cash advances should be avoided because they incur a different, higher interest rate than regular charges to your card. Cash advance interest is often one of the highest rates your card offers. If you (or your spouse) has earned any type of income, you are eligible to be contributing to an IRA (Individual Retirement Account), and you need to be doing this right now. This is a great way to supplement any type of retirement plan that has limits in terms of investing. Have your premium payments automatically deducted electronically from your checking account. Insurance companies will generally take a few dollars off of your monthly premium if you have the payments set to go automatically. You're going to pay it anyway, so why not save yourself a little how do umbrella companies work hassle and a few dollars? If you are currently renting, start saving. Once you have an idea of the monthly mortgage payment you qualify for, save the difference between that amount and your current rent payment. This will get you used to making a larger monthly payment, and any savings can be put towards your down payment for your new home. Shop the dollar stores. You can often buy the same products in dollar stores for a fraction of the price you would pay in bigger department stores. Whether you are buying toothbrushes, over-th- -counter medicines, cosmetics or any one of hundreds of other products there are big savings to be had in dollar stores. If you rely on credit cards to make most of your purchases, or for multiple high-dollar expenditures, consider having the balance transferred to a credit card with lower interest rates. This is especially helpful for those who plan to continue using their cards for a considerable period of time in the future. To make a realistic budget for financial planning purposes, start where you are, not where you want to be. Track every penny for a month, but do not be immediately self-conscious about it. Get receipts for everything and keep them in a box. At the end of a month, you can sort them all out and see exactly what your spending is like. That is your budget, and it is easier to tweak when you are unemotional and honest. You can improve your personal finance http://www.mncppc.org/About_M-NCPPC/Employment.html by obtaining the best interest rates you can for your savings accounts. While the difference in internet rates may seem to give a negligible benefit, it can definitely add up to a substantial amount over years. There are many websites that you can find online that compare savings account interest rates across a wide number of banks. Use them to find the best rates. Make a will. It is vital to ensure the protection of your loved ones in case of your death. Not only will your assets be handled according to your directions, but more importantly a will assigns </li><li> 3. guardianship of your minor children. Lawyers or financial planners can ensure that your will is a valid legal document and also offer advice about tax-saving strategies. Use the advice in this article to protect the nest egg you have labored to build. Save as much as you can, and maximize the return on your investment whenever possible. </li></ol>