Tuesday, October 23, 2012

Expert Personal Finance Advice You Can Use Year After Year

By Flmike Fiver


You don't want to be wasteful and just throw all the money you have worked for down the drain. You may not know the most efficient way to start saving your money rather than spending like a drunken sailor. You are worried about people's perceptions of you if you were to ask for advice. The piece that follows is sure to help, as it is packed with personal financial tips and advice.

If collectors are harrassing you for repayment of debts, try and do some negotiating with them. Your debt was probably bought for a low price. You could end up only paying a fraction of your debt. Get rid of your debt for much less using this in your facor.

Rule #1 of good personal finance is "income must exceed expenditures." Individuals that spend all their money will have a hard time in accumulating wealth. This is because they spend the money when they initially get it. Figure out your total income, and never spend more than that.

Taking note of each and every expenditure is a great way to discover where your money tends to go. If you put your notes in an obscure location, though, it may be too easy to forget about 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. This way you will be confronted with it often, and the message will stay in your mind.

Compounding interest is a great way to grow your finances, particularly for young people just starting out. Look for a savings account you can use and see to it that you save some of the money that you earn.

Using more than one checking account can help you with your finances. One account could be used to cover fixed expenses; another would be devoted entirely to variable expenses. You can keep a better eye on your money, and ensure that all your expenses will be covered.

Learn about and use flexible spending accounts wisely. Flexible spending accounts are perfect for people with medical deductibles, daycare expenses and who purchase over-the-counter medication. These types of accounts are designed so that you may save a set amount of money before taxes to pay for future incurred costs. Speak with a tax pro to see what kind of conditions are involved.

Cut off your cell phone if you need to save money. This may seem harsh, but you survived before without a cell phone, and you can do it again. While cell phones seem necessary, they are generally conveniences, more than anything. If you cannot eliminate your phone entirely, consider switching to a more affordable service or reduced data usage limit.

Try to set up an arrangement in which you use your debit card to make payments to your credit card company every month. You can avoid late fees and penalties by ensuring the bill is paid on time.

If you have personal debt you can get it paid off much quicker by using money you get back from tax refunds. Resist the temptation to spend this money! So in the end, they will still owe a ton of money after that refund is spent.

Place your money in different accounts to secure it. Keep some of your money in your savings account and some in your checking account. Invest some in gold, stocks and even in high-interest accounts. These are all ideas on how you can safeguard your investments and money.

Credit cards are generally superior to debit cards. If you have a card that offers rewards, use it on your daily purchases, such as groceries and gas. You'll earn points or cash back on those purchases when you use a rewards card.

You can get some extra money from a yard or garage sale! Let all of the neighbors know about the upcoming garage sale - one might even offer to sell items for them in exchange for a small commission. You can be creative at your garage sale to make a little extra income.

Staying on top of your finances will allow you to save money on overdraft fees and late fees. Monitoring your own finances, instead of depending upon the bank to keep track, can give you a feeling of pride and help you better manage your finances.




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