If you have just become an independent person, or if you are a college student, it is tempting to take all your money and spend it at the club or out to eat. If you want to be financially stable you have to avoid these things and properly manage your finances.
Invest in a small accordion style envelope and always have it on hand. Your envelope should be used to store items such as business cards and purchase receipts. If you ever need to refer to them for future reference, you’ll know immediately where they are. It’s useful to have your receipts if you ever see double charges for a purchase on your credit card statement.
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. The company who provides the extended warranty makes a lot of money on the deal and for you, it’s often not worth the price you pay.
Do not take on debt when you are trying to balance your personal finances. Some debt is normal, such as education loans and mortgages, but try your best to avoid bad debt such as credit cards. If you do not borrow any money, you will not have to pay any interests or fees.
Arrange an automatic withdrawal from checking to savings each month. This will force you to save money. It’s extremely helpful if you have an expensive life event that you’re saving money for, like a vacation or a wedding.
Two of the largest items you will ever buy are your house and your vehicle. Payments on principal and interest for these items are sure to take the biggest chunk out of your monthly income. Making one extra payment yearly or applying your tax refund money will get these paid off faster.
If you’re married then you want whichever one of you that has the best credit to apply for loans. Build your credit up by using and paying off your credit card regularly. This is especially important if you are trying to repair bad credit. You can share debt more equally with your spouse once you’ve improved your credit score.
If debt collectors constantly contact you, then you should know that your debts do legally expire if they are not collected within a certain time frame. Ask an expert about when your debt will expire and do not pay anything to a collection agency that tries to get your money for an old debt.
If you are contacted by a debt collector, express willingness to negotiate. You debt was probably purchased by them for a low price. So, even if you can only pay them a small piece of what you originally owed, they will probably still make a profit. Use this fact to your advantage and negotiate a lower settlement.
Switch out your old incandescent bulbs in favor of new, energy-efficient bulbs. By replacing your regular bulbs with high efficiency CFL bulbs, you will lower your electricity bill, as well as help the environment. In addition, CFL bulbs have a longer lifespan than incandescent bulbs. Also, you will be saving money by not having to constantly buy new bulbs.
From every check, take out savings first. If you plan to save whatever money is left at the end of the month, it will never happen. Additionally, setting it aside right away prevents you from spending the money on things you do not need. You will know what you need money for before your next check comes.
If a person wants to make a purchase that they can not afford, one option is to involve others. If the item could benefit multiple people at once, such as a game console or stereo, they might be able to buy it with the help of other family members.
By writing down a budget that keeps you from spending more than you earn, you can avoid piling up debts and unpaid bills. Use the tips laid out here, so you can avoid collection calls and remain in the black.