Is Your Wallet STILL Empty? Learn How To Improve Your Financial Health
With the economy being in as much turmoil as it is, it is important to have a good hand on your personal finances. It is important to be organized and to closely watch your expenditures or else you’ll find yourself in debt before you know it. This article can help prevent that.
To truly take advantage of an emergency fund, keep it close but not too close. Three to six months pay should be sitting in an account somewhere so that an unexpected expense is not the end of the world. However, it should be money in an easily accessible interest bearing account, but not in your primary checking account where you can kill it with your debit card in one day.
If you are having difficulties paying off a credit card, you should stop charging it. Reduce your expenses as much as possible and find another method of payment so that you do not max out your credit card. Pay off your monthly balance before you start using your credit card again.
When it comes to your own finances, always remain involved and make your own decisions. While it’s perfectly fine to rely on advice from your broker and other professionals, make sure that you are the one to make the final decision. You’re playing with your own money and only you should decide when it’s time to buy and when it’s time to sell.
Shop around before committing to a specific lender for financing. Talk to several loan officers, and always get terms on paper. You can also let the loan officer know of other rates you have been quoted, giving them a chance to compete for your business. Be sure to not only compare interest rates, but additional fees and charges as well.
Establish your financial goals first. You cannot determine how to proceed if you have nothing to work towards. Figure out and prioritize what you want to do financially, and then move forward with your plan and goals firmly set in mind.
If you’re trying to save money for a big purchase, but find that it’s not easy to stick to a budget every day, week after week, here’s a different strategy. Make the effort to save money every other day. For instance, pack a bag lunch three days a week instead of buying lunch out. Put the money you save into a savings account towards your planned purchase.
Creating a budget is extremely important. Many people avoid it, but you will not be able to save money if you do not track your finances. Make sure to write down all income and expenses no matter how small it may seem. Small purchases can add up to a big chunk of your outgoing funds.
To make a realistic budget for financial planning purposes, start where you are at, 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 easy to tweak when you are unemotional and honest.
If your employer offers a match to your 401K, make sure you’re contributing at least the amount they match. When an employer offers to match your funds, they are essentially giving you free money. The money you contribute will help you reach retirement goals and is tax free. It’s a win-win situation, all around.
To sell an item, draw attention to it with a catchy slogan or a good price. For example, a person trying to sell a truck in the winter could say “Need a good winter vehicle, here is a ……” Do this and instead of your items being overlooked you’ll get the sells you need.
These hard financial times don’t have to envelop you like they have nearly everyone else. If you are prudent, wise, and organized, you can prevent the tragedy of debt from befalling you. This article has armed you with the advice necessary to prevent and prepare yourself from falling into the hands of debt. Instead of struggling all of the time learn to Collect Assets rather than Debt. In fact create your Own Legacy.