Managing your finances can be a challenging job for anyone, and if you are stressed out, you may have a harder time. If you need a plan for taking care of your personal finances, you are in luck; this article contains smart, effective advice for coping with your personal finances.

1. Get a savings account for emergencies. When you decide to get serious about your finances, you are going to need a savings account. A lot of people don’t think they can afford to take the money and fund a savings account, but the truth is that you can avoid a small frivolous expense and put a few dollars into a savings account.

2. Avoid checking accounts with fees. This is a no-brainer, yet a lot of people still pay fees for their checking account. This is just not necessary when you consider all the banks competing for your business. Don’t be lazy; just take a few hours to research a bank without fees, and open an account. This can save you a good amount of money every month.

3. Track your spending. You probably do this in some form, but it is important for you to track your spending on paper, whether you write down your expenses or print out your credit card statement. Knowing where every penny is going can help you to realize exactly how much you are spending on frivolous things. Not only that, but you get a clear picture of what you are currently doing with your money.

4. When you need to borrow money, avoid banks in favor of relatives and friends. Banks will charge you much higher interest rates than anyone you know personally. Talk to family and friends about your needs and find out whether anyone can help you before even talking to a bank.

5. Pay bills on time or earlier than you need to. Not only will this look good on your credit report since you will be paying within 30 days, you will also avoid bothersome phone calls. You will also be able to move on to the next thing in your life instead of worrying about your bills. Get them out of the way so you can enjoy life.

6. Do not seek cash advances from your credit cards. This can be dangerous, as you will probably pay a fee when you get the money from the ATM, and you will see the high interest rates reflected on your bill. A cash advance ends up costing you an extremely high amount of money, for something that probably isn’t worth it. Anytime you feel like you want a cash advance to buy something, give yourself 24 to 48 hours to either forget about it or to go to the bank and withdraw cash.

If you have good ideas about what to do, handling your finances can be easier. Just use the tips laid out in this article, and you will be prepared to manage your finances in a way that is smart and effective.