Gain Control Of Your Future With These Personal Finance Tips
Posted at by PConran on category Personal Finance
It can be tough and confusing to keep track of your finances. If you track each expense, it is easier to maintain a budget. There are a lot of Internet tools that can help you accomplish this, though even when using them it is important that you know exactly what you are spending your money on.
Do not sell if it is not the right time for you. If the stock you own is doing well, then let it continue to do well and not sell. Carefully study your portfolio, and decide which stocks you should sell and which ones you should hold on to.
With this recession, having multiple spending avenues makes sense. Here are some of the types of accounts and investments you should consider: straight savings account, standard checking account, stock investment, high interest bearing accounts, gold investment. Use all or some of those ideas to keep your money safe.
Don’t fall for the scam that an organization can guarantee you a clean credit report. Most companies try to embellish their abilities to make you feel that they will be able to repair your credit history. This isn’t even possible, since every individual has different credit issues. Do not believe anyone who advertises miracles.
Most new products already come with a 90 day or one year warranty, and if your item is going to mess-up, it probably will within that time frame. Because they rarely have to pay them off, extended warranties are a safe bet for vendors, but for consumers, they are almost always a waste of time.
Set up an automatic savings plan with your bank so that a certain amount of money is transferred to a savings account each month from your checking account. Doing so makes it much easier to save money, since you do not have to actively do so. In the event you are saving money for something special (e.g. a vacation or wedding) this can be very helpful.
To maximize your credit score, have at least two, but no more than four, credit cards. If you use just one card will take longer for you to build up good credit and having more than three or four cards shows you use credit too much. Use two cards to start, then add new cards as needed to build your credit.
Instead of maxing out one card, try to use a couple of them. The payments on a maxed-out account is more than the combined interest of two cards with smaller balances. Keeping lower balances on two cards, rather than maxing out one card, protects your credit scores and can even improve your credit history if you keep both cards paid on time.
Make sure that you will end up in a secure financial situation before you pile up a great deal of debt with student loans. 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.
Make sure to save for a rainy day by creating a savings account for emergencies. You can also save for specific goals, like paying down debt or playing for your kids’ college.
Flexible Spending
Make sure you get those most out of the flexible spending account. Flexible spending accounts can help reduce your medical or childcare expenses. Having these accounts will help you build a savings of pretax dollars to pay for these expenses. Speak with a tax pro to see what kind of conditions are involved.
Allow yourself a set dollar amount every week for the small luxuries you enjoy. Being too restrictive can lead to a sense of lack in your life so, allow some cash on hand for treats. Make sure to limit the amount to a sensible portion of your income so that you don’t over spend, however. This lets you treat yourself and reward yourself without messing up your budget.
If you are aware about your money, you will revent overdraft charges and other money problems when something happens. You’ll feel better when you’re in control, and the bank is not.