Personal Finance Advice That Your Father Never Gave You
Posted at by PConran on category Personal Finance
Tracking your personal finances may prove to be overwhelming. If you are proactive and keep track of all that happens with your personal finances, you will be able to save yourself from getting in trouble later on. With newer tools such as online banking you can streamline this process pretty easily, but you still need to be aware of where exactly your money is going.
Success in business can be directly related to money management. Protect your profits and invest your capital. Of course, you need to spend some of your profit on investment, but you also need to keep an eye on that investment. Set a percentage of your income to go into investments.
Be mindful of your finances by creating financial plans for your future. Having a solid plan is a good motivational tool because it drives you to work harder and cut down on unnecessary spending.
Nearly Maxed
Instead of using a nearly maxed out credit card, try using a couple credit cards. The interest should be a lot less on two or more cards than it would be on the one that is nearly maxed out. In most cases, this won’t do much damage to your credit scores, and, if you manage your cards wisely, it may even help you improve the state of your credit.
If you are struggling with very old debts, educate yourself on when they expire. Ask someone when a debt can be erased and do not give a collector money for a very old debt.
Avoid eating out in general and save a lot of money. Cooking at home, from inexpensive ingredients, not only saves money, it cultivates a better awareness of the effort that goes into preparing healthy and enjoyable food.
Change over to a checking account that is free. Check out credit unions, Internet only banks, and community banks in your local area.
Avoid incurring large debt through student loans, unless you are sure you can handle it in the not too distant future. Going to an expensive private school while unsure of your major or what career path you’re going to take, may mean that you end up in permanent debt.
For high-ticket items, be sure to shop around to get the best price. Shop around for the best car prices, then pit each dealer again the other. The Internet can also be helpful if you’re having trouble finding a good deal.
Your FICO score is determined in large part by your credit card balances. The closer you are to your credit limits, the worse the impact on your score is going to be. When you pay the balance down the score will begin to climb. Try to keep the balance at 20% or less than the maximum credit allowed.
Credit Card
By having your bank automatically pay your bills each month, you can make sure your credit card payments always get there on time. When you can’t completely get rid of your credit card debt, making regular monthly payments will improve your credit history. With an automatic debit, you never have to worry about a late payment and you can always supplement the payment if you have extra cash.
Keep an up to date filing system, saving all necessary financial documents that you need for filing income taxes. Keep all your receipts and other tax documents organized in the same place throughout the year, and you will be ready when tax time rolls around.
If you can track your money, it is easier to avoid negative things like overdraft fees. When you are more in control of your finances, you will feel more financially secure, and will not need to rely on the bank so much to tell you where you stand.