Personal Finance Tips That Really Make A Difference
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.
A good rule of thumb for savings, is to put away 10% of your income each payday into a savings account. Make sure that you don’t have a debit or credit card linked to this account, as it is too tempting to spend it if you find something you can’t seem to live without.
For those individuals that have credit card debt, the best return on your money would be to minimize or pay off those credit card balances. Generally, credit card debt is the most expensive debt for any household, with some interest rates that exceed 20%. Start with the credit card that charges the most in interest, pay it off first, and set a goal to pay off all credit card debt.
To best manage your finances, prioritize your debt. Pay off your credit cards first. Credit cards have a higher interest than almost any other type of debt, which means they build up high balances faster. Paying them down reduces your debt now, frees up credit for emergencies, and means that there will be less of a balance to collect interest over time.
To maximize the money in your wallet, try not to shop on an empty stomach. When you are hungry, you are more prone to an impulse purchase, given your higher levels of stress and anxiety. Additionally, you will usually spend money on fast food, which will add up over time.
One of the ways that you can save money to improve your financial standing is to shut off the car when you are parked. Keeping your car running could waste gas, which rises in price every single day. Shut your car off any time that you can to save additional cash.
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 hassle and a few dollars?
Put your paperwork together before you fill out your rental application. Make sure you have your employment history for at least the last 5 years and be ready to explain any gaps there might be. Make a list of your addresses for the last 5 years and have the names and phone numbers of your landlords. Without these, it is very unlikely you would be able to lease or rent anything.
Rebuild your Credit Rating with secure credit cards. These types of cards allow you to charge up to a certain limit and that limit is determined by you and the amount of money you put into the card’s spending account. This does not actually extend you credit, but using the card shows up as a credit account on your credit report and can improve your score.
Buy your staples in bulk and save big money. Instead of buying those tiny bags of sugar and flour think in terms of twenty-five pounds at a time. That might seem like a lot but the money you will save will justify the storage space it will require. Just make sure you store everything safely in tins or other rodent proof containers.
As you can see from the above article, it becomes very difficult for many people to know exactly where their money is going each month. There are lots of different ways to help you become better at managing your money. By applying the tips from this article, you will become better organized and able to get your financial situation in order.