Dealing with personal finance is a skill that every adult must learn. The problem is that many people never learn the right way to handle their money, having learned the skill from their parents, who also learned from their parents. Here are some solid suggestions for handling personal finances well.
Unless you have no other choice, do not accept grace periods from your credit card company. It seems like a great idea, but the problem is you get used to not paying your card. Paying your bills on time has to become a habit, and it’s not a habit you want to get away from.
A great way to get a handle on your financial health is to look for bargains and discounts whenever possible. Don’t be a brand loyalist and use coupons whenever possible. For example, you might consider switching from your regular brand and opting for a product that comes with a promotion or discount.
If you are currently paying for your checking account, it’s time to find a new one. Banks compete for your business, and so many offer free checking with amenities and services similar to those you used to have to pay for. Shop around and find one that won’t charge you on a monthly basis.
Selling scrap metal can be a rewarding way to make some extra money. The metal can be found being thrown away on trash night or if you want to try to make a business out of it, you can offer a scrap removal service and advertise your service.
When writing checks or using your debit card, always write down your purchase in your check ledger. You don’t have to do your subtracting at the very moment you make the purchase, but do make note of it. Calculate your expenses at least once a day. In this way, you will never be overdrawn.
Loaning money to friends and family is something that you should not consider. When you loan money to someone that you are close to emotionally, you will be in a tough position when it is time to collect, especially if they do not have the money, due to financial issues.
Pay the utility bills for your home on time each and every month. Late payments can damage credit. Paying late will also rack up late fees and penalties. Paying your bills in a timely manner is the best way to use your money wisely and avoid costly fees and complications.
Spend less than you make. Living even right at your means can cause you to never have savings for an emergency or retirement. It means never having a down payment for your next home or paying cash for your car. Get used to living beneath your means and living without debt will become easy.
Make sure that you are only paying for the amount of home insurance you need. You cannot file a claim for more than the value of your house and it’s contents, so having high insurance coverage could mean you’re paying for something you can’t even use. Do an inventory of your house and get a rough estimate of what you would claim, then speak to your insurance agent to make sure that your coverage matches that amount.
If you’re trying to improve your personal budget, one easy way to get yourself in the mindset is to get your paycheck put directly into a savings account rather than checking or cash. This will help get you in the habit of saving money and not thinking of it all as disposable income.
Personal finance is something that must be learned. Learning to handle money well is a skill that is necessary in life, and it’s a skill one can always improve. Regardless of where someone got their first money advice, using great tips like these can put one on the right path to financial freedom.