It is very easy for recently independent college students to spend too much money on fun entertainment activities, like visiting clubs and nightspots. Instead of doing this, do the finanically responsible thing and manage your finances to avoid debt.
You must learn proper money management. Capital that you invest should be well protected. If you are planning for growth it’s okay to put profits into capital, but you have to manage the profits wisely. Make sure you have a barrier set to determine what you shall call profit and what will be capital.
With the recent downturns in the economy, diversifying your savings across different areas is a smart move. You should have a part of your money in savings accounts, in checking accounts and placed in a diverse portfolio. Explore all your options to keep your hard-earned money safe.
Less Money
Avoid debt whenever you can. Don’t let your credit cards tempt you into a mountain of debt. Borrowing less money translates into paying less money on surcharges and interest.
If you desire a favorable credit score, use two, three or four credit cards. Having just one card means slower accumulation of good credit, but having five or more cards can add unnecessary complexity to your finances. Use two cards to start, then add new cards as needed to build your credit.
If you fly a lot, you may find it a worthy investment to enter a frequent flier program. A lot of credit card companies give rewards or discounted flight tickets to be redeemed from purchases for no additional charge. Frequent flyer miles can also be redeemed for all kinds of rewards, including totally or partially discounted hotel rates.
Flexible Spending
Make sure you get those most out of the flexible spending account. Flexible spending accounts can be great for covering medical expenses and daycare expenses. With a flex spending account, you set aside a certain amount of pretax money, which you can use to pay for needed expenses. However, be sure to discuss the conditions of this sort of account with your tax consultant.
If a person wants to make a purchase that they can not afford, one option is to involve others. For example, family members could all pitch in to purchase a large item that would benefit everyone in the household.
Everyone makes mistakes now and then, especially with their personal finances. If you have only bounced one check, your bank may agree to waive the returned check fee. These tricks are for people who knows what they are doing when it comes to keeping up with balances and not overdrawing their account.
To avoid a frantic, last minute search for your financial records, it is a good idea to maintain a filing system for these documents. All important documents, receipts and records should be kept in one central location so that you can easily lay your hands on them when tax time rolls around.
Make sure that you have a flexible spending account. You will not be taxed on this money, so it will be a savings for you.
Real Estate
All debt is not bad. Debt that can be considered beneficial or good most often involve real estate purchases and investments. Real estate is good because, for the most part, they increase in value over time and the loan interest is tax deductible. Paying for college can also be a good debt. The typical student loan has a very low interest rate and is not required to be repaid until a student has graduated. These generally offer low interest rates and postponed repayment periods that do not occur until graduation has passed.
Always have an idea of what your credit report shows. There are more than a couple of ways that you can see your credit report at no cost. Check your credit yourself at least twice in a year so you can ensure that you have not been a victim of identity theft.
Credit Card
Why not open a credit card account that includes a rewards program? This is a great option if you pay your credit card balances off each month. These cards can bring you nice perks such as air miles and cash back as a thank you for using the card as you normally would. Make sure you select a card that will allow you to easily get rewards you will actually need.
Make sure to budget and track money to follow expenses. This will give you an accurate idea of where cuts can be made in your budget.
To save your money you may want to consider working from home. You will save thousands of dollars on gas. By spending money on gas and going out for lunch, you could end up spending a third of even half of your paycheck prior to even getting it.
If you cook at home and refrain from eating out, you can save money and improve your finances. You can cook a healthy, substantial meal for a family of four for around $30. Stuffing yourself with a couple pizzas and a bottle of pop will cost more, so why waste money and get fat doing it?
Make the best of your income and stay out of debt by budgeting and creating a shopping list of necessities you need. This article will help you in your money management endeavors.
