How you handle money can make your life great or make it stressful. Make the decision to take control of your finances and start being successful with money. These tips give you a few ways to make your quest to effectively manage your personal finances a breeze.
Keeping a written notebook on your daily expenses can be a real eye-opener into where your money is going. Simply jotting down your expenditures in a notebook may make it easier to avoid confronting them by pushing them to the back of your mind. If you list your expenses in a noticeable area, such as on a marker board, this may help. You will pass by it all day so it stays in your mind.
Keep an envelope with you on your person. Keep all your business cards and receipts securely stored in this envelope. It’s important to keep these things for future reference. It is always a wise idea to compare your receipts to the bills that you receive to rule out any errors or overcharges.
If you want improved personal finances, avoid debt whenever you can. Granted, there are certain debts that are necessary. However, there is rarely suitable justification for using a credit card to make daily purchases. Avoid borrowing money that has high interest rates and fees associated with it.
If you are looking to improve your credit report, it is a good idea to have between two to four active credit cards. Using one card can take a while to improve your credit, while using over four cards can represent a lack of being able to manage finances effectively. Stick with two to three cards, and be mindful of how you use them in order to build a solid credit history.
It is important that you establish some structure to ensure the security of your financial future. The use of a plan will provide motivation, as well a logical reason to put money in certain places, rather than following your impulses at random times.
Instead of using one credit card and almost maxing it out, try to have 2 or 3 cards with lower balances on them. The interest should be a lot less on two or more cards than it would be on the one that is nearly maxed out. This also won’t harm your credit score much, and it could help you improve it if those cards are used wisely.
Swap out your old incandescent light bulbs with the highly-efficient new compact florescent lamps. This kind of bulb will help you reduce your electric bills significantly. CFL bulbs last a lot longer than old-style, traditional light bulbs. You will purchase fewer bulbs, so you will not spend as much money.
It is only a bargain if you buy what you actually need, rather than loading up on something simply because it is on sale. Stocking up on foods you regularly eat will save you a bunch of money, just make sure whatever you buy is eaten before the expiration date. Make the most of the bargains without wasting your money.
Credit Cards
Credit cards can be a good alternative to a debit card. If you can be approved for credit cards, use them for small daily purchases like food and gas. This will probably earn you credit card rewards, which means you could get cash back.
Left over money from minor transactions can be used in creative ways to increase finances. Buying lottery ticket with a spare dollar offers the opportunity to win a much greater amount than was expended.
Create a monthly entertainment allowance so that you do not spend more than you can afford. Use your allowance to buy yourself whatever you want, and don’t spend any more that that. It helps you to enjoy your money on smaller things while not harming your budget.
As was discussed previously, good money management as well as bad dominates every part of your life. Using these tips, you can move your life in a positive direction.
