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Tips On How To Manage Your Personal Finances

by skoda on January 24, 2012

How To Manage Your Personal Finances

Even though knowing how to take care of your personal finances is a vital life skill, you may feel your money-management talents are somewhat lacking. Fortunately, you can take steps immediately to improve your financial insight and gain confidence. This article will give you some tips on handling your finances with skill and intelligence.

Look at the fees you are paying to institutions like your bank and any bills that you pay. You may be paying for services you don’t need or that you could get for less with another company. Your bank may be charging you all sorts of fees for convenience payments, paper statements, etc. See where you can knock off just a few dollars from each bill and that can add up to a lot.

Contribute to your IRA (individual retirement account) if you are eligible to do so. Interested parties can open up an IRA with a credit union, brokerage firm, bank, or even a mutual fund company. This can certainly help supplement your retirement if you contribute to the individual retirement account regularly.

If money is tight it might be time to stop driving altogether. The cost of car ownership is extreme, with a car payment, insurance, gas, and maintenance, you can easily spend five hundred a month on your transportation! A perfect alternative to this would be the city bus. A monthly pass usually costs around a dollar a day, that’s over four hundred seventy dollars of savings!

The majority of your unnecessary spending will usually come on a whim, as it should be your mission to limit this as much as possible. Before you go to the supermarket, make a list so that you just purchase the items that you are there for, reducing the amount of impulse purchases.

Baby sitting can be a way to earn money that allows you to stay in a comfortable environment the whole time. You must have a good image for people to trust you with their home and more importantly, their children. However, if you do a good job, you can get recommended to others and further your personal finances.

To establish a good credit history or repair a bad one, you will want to keep your credit card balances low. You should never let your balance get anywhere near your maximum credit line. Having reasonable balances that you pay off regularly is a sign of a responsible credit user who can be trusted with debt.

Talking to a family member who works in or once worked in a finance related profession can help one learn how to manage their own personal finances. If one does not know any people who fit that description a family member of friend who is good with their money can often be the next best thing.

Try to arrange it so that your debit card automatically pays off your credit card at the end of the month. This will help keep you from forgetting. Even if you can’t afford to pay the entire thing, you should at least set-it-up so that the minimum payment is automatically paid.

If you simply cannot commit to balancing your checkbook the old-fashioned way, opt for a high-tech online option. 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.

Refer to the Federal Housing Administration’s guidelines before your borrow. These guidelines will help you determine what your borrowing limit is. Your limit will depend on how much money you earn: follow the FHA’s advice and you should be able to avoid taking on a loan that will drive you to excessive debt.

When it comes to sound personal finance decisions, one of the best things one can do is to avoid debt in general. If you are buying a home or a car then a loan is fine. But in day to day life, one should not rely on credit to get by. Living within one’s means is very liberating and also is key to a prosperous financial future.

Personal finance learning can be addictive. Even a little improvement in your money-management skills can encourage you to refine your skills further. Go out and educate yourself with enthusiasm! There is no limit to how much money you can save yourself.  Another option is to Collect Assets instead of Debt!  After all, everyone collects something why not Collect Money?   

 

 

 

 

 

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