Personal finances can be downright unpleasant. It can seem as if you always have more and more expenses. Even though that may be the case, you are able to learn ways of coping better with your personal finances so that, instead of spending too much, you save.
Make sure you chose eateries that a local person would when you are traveling, so as to save costs. Hotel restaurants should only be your last resort. Do some online research, or ask around, and find some great local places to eat. This is a great way to find authentic food at a budget-friendly price.
Keeping a written notebook on your daily expenses can be a real eye-opener into where your money is going. Though writing in a book that can easily be put away so you don’t see it often will allow you to forget about it and not use it. A better choice may be writing your purchases on a poster or whiteboard that can be placed in a prominent place to catch your attention daily. You will see it often throughout the day so the message stays fresh.
Patience can be beneficial when it comes to personal finances. People are usually tempted to run out and purchase the newest electronics. However, just by waiting a little while, you will see the price drop significantly. This will give you much more money to use for other things.
Open a new savings account at your bank, and deposit money into it on a regular basis. This will make it less likely that you will have to get a loan when extra money is needed, and you will be able to deal with emergencies. Even if it’s impossible to make a significant contribution each time, save as much as you can because every little bit helps.
Each time you receive a check, the first thing you should do is put some of it in savings. If you go forward, expecting you will simply save the remainder for each month, you will be encountered by a surprise known as “reality”. Knowing this money is put aside for savings, it helps you to create a budget and avoids the temptation to spend it.
Frequent Flier
If you travel by air frequently, it might pay for you to sign up for one of the frequent flier programs. A number of credit cards feature rewards programs that allow you to cash in your points or other rewards for discounted, or even free, plane tickets. Your frequent flier miles will constantly increase and are redeemable at thousands of hotels or airlines across the world.
Buying in bulk is only smart if you are using all of the product before it goes bad. If you’re throwing out half of what you buy, then you’re also throwing away your money. Purchase realistic quantities to make the most of the bargain prices.
If you invested or saved the $25 that many people spend weekly on lottery tickets, you would definitely have more money. This would guarantee an increase of money over time, as opposed to throwing money away.
Always have money in your savings account in case of an emergency. Save some money that will go to a goal you have, like paying off debt or college savings.
If a person is always ending up with single dollar bills left in their pants pockets from getting change they can use them in a fun way to possibly increase ones personal finances. Use them to buy lottery tickets that can possibly win you the jackpot.
A person looking for a way to add a little extra to their financial resources can make good use of his or her old laptop. When electronics are working, or you can repair them, they sell for better money than broken. Even an un-repairable laptop is likely worth enough money to fill up a car’s gas tank if one finds the right place to sell it.
Credit Card
Your FICO score is determined in large part by your credit card balance. A higher balance translates to a lower score. As soon as you pay down the balance, your score will start to improve. It is a good rule of thumb to keep credit card balances at or below 20% of your credit limit.
Set aside a cash allowance that you can use for small personal purchases. You can use this cash for whatever you want (new clothes, a movie, etc.) though once you spend it all you can not get more until it is time to pay yourself. Your budget will remain in tact, and you’ll still be fairly happy.
Avoiding debt to begin with is the best advice for good personal finances. A loan is appropriate for buying cars and homes. Try to avoid using credit on a daily basis just to get by.
If you find that you spend 100% of your paycheck, go over your expenses line by line and see if you can reduce your spending on any non-essentials. Cutting out restaurant dinners entirely is not a good idea, but cutting back on them will allow you to still indulge once in a while. But, eating out half of the time you do now can satisfy your craving, while saving you money.
It is a wise idea to always have a small amount of cash in your wallet for incidental purchases. Recent law changes now allow merchants to dictate a minimum purchase when you are using a credit card.
Small changes can have a big impact on your budget. Forgo that daily stop at the cafe and make your own coffee instead. You could be saving $1200 a year with a simple change. Consider riding the bus when you can, instead of using your car. The amount you save on gas could be $200 per month. This money adds up and can be used toward your retirement, or that big investment item you are interested in. It’s going to certainly be worth a lot more than any cup of coffee.
Use these tips to adopt a new approach toward your finances and be more responsible. Do not worry if improving your financial situation takes time. Like weight loss, it won’t happen overnight. If you keep at it, you will soon be noticing the positive results!