You don’t have to have a degree in finance or banking to be able to control your own personal finances. With a little planning and discipline, you can live on what you make while putting some aside to grow your net worth.
Stay up-to-date with financial news so you know when something happens on the market. Americans mostly ignore news that is not focusing on the U.S. which is a big mistake. Knowing what the world is doing right now will help you to come up with a better strategy and will help you to better understand the market.
Most products come with some kind of factory warranty. Sometimes it is only 90 days, other times it is up to year, and most problems creep up within the manufacturer’s warranty. Extended warranties only serve to profit the company you bought them from.
You personal financial health depends on keeping your debt under control. There are certain types of debt that you cannot escape like mortgages. Yet you should not opt to take out credit cards and build debt that way. Borrowing less money translates into paying less money on surcharges and interest.
Your car and house are very likely going to be your biggest expenses. Payments on principal and interest for these items are sure to take the biggest chunk out of your monthly income. You can pay them off faster if you add an extra payment or put any of your tax refund toward it.
If you’re currently married, make sure that the spouse that has the best credit is the one that applies for loans. If you currently have a bad credit rating, take some time to improve it by using a credit card and paying it off on time. Once your credit is better, you can than apply for loans together and share the debt evenly among the two of you.
Do not make charges on a credit card that you are having trouble paying off. Go over your expenses and eliminate things that are not vital to your survival. Try to find another form of payment for the things that you really cannot live without. Pay off your credit card, and then pay it off in full each month if you start using it again.
If your debt has been turned over to a collection agency, keep in mind that if the debt is not collected, it will eventually expire. To find out what the statue of limitations for old debt in your state is before paying any money on old debt.
Try to hold a garage sale, where you can sell all of your unwanted goods for additional cash. You may even be able to convince your neighbors to contribute unused items, having you sell them for a small cut of the selling price. A person can be as imaginative as possible when holding a garage sale.
Frequent flier programs are advantageous to anyone who travels by air often. Frequent flier miles are a popular form of one of the many rewards that credit card companies provide. Frequent flier miles can also often be redeemed at a variety of hotels for free rooms or discounted stays.
Create a savings account set aside for emergencies. You can use it to pay for a goal, like saving for college, or paying off your credit card.
Talking to a good friend or family member that has worked in the financial services industry can be a good source of free information on how to better manage your finances. If one doesn’t have anyone like that, a friend or family member who manages money well can suffice.
If an item that is too expensive benefits the whole family, then it is a good idea to try and get the money together as a team effort. If the whole family can use it, they should pool their money in order to buy it.
Try setting up monthly bill pay with your bank to make sure all of your credit cards are paid on time. Even if you can’t pay your balances off in full, always make on-time monthly payments toward your credit card debt. You won’t need to worry about missing a payment or having it arrive late. If you can, send in a little extra to pay down the balance on the card.
Arrange for an automatic withdrawal to take money out of your account and put it in a savings account with high interest rates. This may take some getting used to, but soon, you will look at it like any other bill you pay on time and the increase in your savings will be well worth it.
Read any mail that your credit card company sends you. Federal regulations require that creditors notify you of any changes no less than 45 days before the changes take effect. Look into the changes made and decide if the account is worth keeping. If they are not, then close it!
If you want to manage your finances better, you can do it. Just use the tips you’ve learned from this article and a bit of common sense to budget your money, pay off your debts, and find that elusive financial stability you’ve been seeking.