You don’t need to be Dave Ramsey to manage your money well. With just a moderate amount of logical thinking and some smart money management ideas, you can simultaneously stay within budget and add to your wealth.
Because the times are quite volatile, it can be a good idea to keep your savings in a number of smaller accounts. A savings account, check account, high interest account and stocks will help you make the most of your cash. These are all ideas on how you can safeguard your investments and money.
Develop a better plan for the future by keeping a journal of all of your expenditures. 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. This is why you should install a white board into your bedroom, kitchen, or even your office so that you can write out your expenses. You will pass by it all day so it stays in your mind.
Set up an automatic savings plan with your bank so that a certain amount of money is transferred to a savings account each month from your checking account. Set up an automatic account if you find it hard to put some money aside. Saving up for a vacation is another great way for you to develop the proper saving habits.
Houses and cars are usually the most expensive purchases you will make. 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.
Be prepared by having the correct health insurance policy at hand. Everyone is bound to get sick at one point or another. For this reason, it is important to be covered. Before you know it, a stay in the hospital, as well as doctor’s bills, can reach tens of thousands of dollars. If you don’t have good insurance, you could be left drowning in debt.
Erasing your financial debt is the first step you must take when you want to improve your credit rating. The best way to do this is by paying off all your loans and looking for ways to budget your money. Reduce your food bill by eating at home more and going out less on weekends. Making your lunch for work and eating at home during the weekends and at night can dramatically reduce your expenses.
Avoid taking out huge student loans unless you are certain you will be able to make the payments on it. Going to an expensive private school while unsure of your major or what career path you’re going to take, may mean that you end up in permanent debt.
Not using a credit card at all is one way to stay out of debt and to protect your personal finances. Before using any type of charge card, take some time to think about the purchase before you hand over the plastic. Ask yourself how long it will take to pay off. If you cannot pay it in full in one month and it isn’t completely necessary, you ought to avoid it.
Credit Card
First time credit card applicants under the age of 21 need to be aware that rules have been changed in the past few years. Not too long ago credit cards were freely given out to college students. These days, you must be able to prove that you have income, or use someone to co-sign. Always research the requirements and the fine print when considering a credit card.
To keep yourself from splurging and wasting your savings, give yourself a cash allowance. This allowance is enough for you to purchase shoes, meals and books, but that is all the spending money you get for the month. This is a good way to avoid overspending on items you do not really need while staying happy.
From what you have learned above, it is definitely possible for anyone to live a financially prudent lifestyle and even increase their personal wealth. Just take these tips to heart and put them to use to build your skills to budget, pay off debt and save for a rainy day.