Manage Your Money More Effectively
When your finances are in bad shape, it reflects on your life in general. The following advice will help you get your finances into shape.
Watch for letters that tell you about changes in your credit accounts. The law states that these creditors must give you a 45 day heads up. Make sure that you read the new information carefully. Once you have done this, you can decide if the changes make it worth keeping the account. If not, pay it off and close it!
With the economy in its present condition, putting savings into varied sources makes good sense. Fund your savings account, maintain your current account as well, and diversify the rest between stocks and shares, pension accounts and, if possible, gold. Use all or some of those ideas to keep your money safe. I also like using Premium Bonds because its risk free.
Try reducing your alcohol consumption to prevent making poor financial decisions. Stick to water when you are out, so that you can make clear-headed decisions that you will not regret later. Under the influence of alcohol we are more likely to spend money on things that we do not actually need. Also by reducing casual drinking you will save money directly.
If your debt has been turned over to a collection agency, keep in mind that if the debt is not collected, it will eventually expire. If you think that a debt has expired, consult an expert. You may not need to pay the collection agency for the expired debt. However you may run the risk of a bad credit mark against you.
If credit card payments can slip by you, then think about setting up an automatic payment like direct debit arrangement through your credit union or bank. Most credit card companies will actually help you to set this up, so it’s a set and forget, but make sure you have the funds in place each month.
If you are unable to pay your credit cards off all at once, then by making timely monthly regular payments you will be establishing a good credit history. By setting up an automatic debit from your bank account, this will ensure that your payments are on time, and you can pay a little extra each month if you are able. But when possible pay your credit cards off as quickly as possible as they are usually the most expensive source of credit.
Don’t make the same financial mistakes twice. Get out of your current situation if it is not a good one, and learn from your mistakes.
If you have sold your time, for far less than its value, in the past, vow never to do it again as you move forward. Every lesson that you learn when dealing with your personal finances is valuable to you. Make sure to learn from your lessons, so you will not be in a poor financial situation in time to come.
If you’re not yet 21 years of age and are looking for a credit card, you should know that things have changed recently. In the past, college-aged young adults could get approved for credit cards very easily. Now a day’s some banks or companies will either want provable income or a co-signer. Make sure you’re well aware of what a card requires before you apply.
The key to successful personal finance is a written budget. To make your budget, start by writing a list of all your expenses at the start of each month. Be certain to include any living expenses, such as mortgage payments, electricity, car payments, cell phones, groceries and other regular payments. Don’t forget bills that aren’t paid each month. These may include car insurance, property taxes and council tax rates or propane gas or oil costs if you live in rural areas. You can get an approximate monthly payment for these by averaging the previous year’s cost. Make sure not to spend more money than you earn.
Paying off any credit cards that have high interest rates should be your priority as you seek to pay and reduce down your debt. Paying them off is essential as the high interest fees will add up. This is very important because rates are rumoured to rise in the coming years. There are 2 schools of thoughts here, 1. You can pay off the high interest debts of first then the other debts, or 2. You pay of the small debts first whether they are high or small interest rates, then the amount you were spending on them once paid can be used to pay off the next debt with extra payments, so it works like a payment waterfall effect.
Remember to do your taxes at a time that is right for your personal situation. For a faster refund, file as early as possible. If you owe money, then you may want to file your taxes closer to the due date and pay 31st January.
No matter how dire your financial situation is, try to avoid raiding into things like your retirement fund or emergency fund. You can repair your financial situation by a number of other means and methods. Tampering with your savings for the future can leave you high and dry when you truly need those funds and are too old to work. Live within your means.
Don’t waste your time and money on get-rich-quick schemes. It is easy for Internet marketers to fall prey to these tactics. Take the time and money to improve your knowledge, but spend even more of your time working to improve your business.
It’s important if you use a broker or financial advisor that they are someone you can rely on. Check their references and listen to what they say to judge their honesty. You will only be respected as much as you prove you should be.
Keep a record of your expenses during a certain time period to determine exactly what your money is spent on. Armed with the facts of how your money comes and goes, you will be able to devise a plan to eliminate unwise purchases and maximise savings.
Even if you have a solid financial plan and budget, money problems can still occur unexpectedly throughout the year. It is always a smart idea to learn when your late fees start, as well as how many days past the due date you are allowed. Look at your choices before entering a year-long lease.
Taking control of your finances can be an empowering choice. Having your finances in order alleviates stress and can let you see the bigger picture and work on other things that need attention.