Personal finance is the bane of everyone’s existence. Let’s face it, there are not a lot of people who will put their hand up and say that this is their favorite subject. However, without having a little bit of knowledge about it, your life is going to get financially complicated very fast. So here are a few things that you need to know.
When it comes to finances one of the most intelligent things to do is avoid credit card debt. Only spend the money if you actually have it. The typical ten percent interest rates on a credit card can cause charges to add up very quickly. If you find yourself already in debt, it is prudent to pay early and often overpay.
Always look for ways to save. Audit yourself and your bills about once every six months. Take a look at competing businesses for services you use, to see if you can get something for less. Compare the cost of food at different stores, and make sure you are getting the best interest rates on your credit cards and savings accounts.
An income tax refund is not the most efficient way to save. If you get a large refund every year, you should probably lower the amount of withholding and invest the difference where it will earn some interest. If you lack the discipline to save regularly, start an automatic deduction from your paycheck or an automatic transfer to your savings account.
Whether you keep track of your personal finances online or on paper, it is extremely important to review your general situation every month. Look for any unexpected changes in your bills, shortfalls in your credits, or irregularities in the dates that money changes hands. Noting these changes and accounting for them is a big part of staying on top of your financial situation.
After you finish a meal with your family, do not throw away the leftovers. Instead, wrap these up and use this food as part of a meal the next day or as a snack during the night. Conserving every piece of food is very important in reducing your grocery costs each month.
If a person has an interest in animals or already has a large amount of pets, they can turn that interest into a source of personal finances. By doing presentations at parties, informational presentations, or even providing tours at one’s home can produce financial benefits to supplement the costs of the animals and more.
If one has knowledge in repairing electronic items then they can earn money for their personal finances. Items such as video game consoles can be repaired for a fee. These items can come from friends, neighbors, or other customers gained through advertisement. One can earn a nice amount of money by simply repairing other people’s game consoles.
Don’t fool yourself by thinking you can effectively manage your finances without a little effort, such as that involved in using a check register or balancing your checkbook. Keeping up with these useful tools requires only a minimum of time and energy and can save you from overblown overdraft fees and surcharges.
Personal finance also includes estate planning. This includes, but is not limited to, drawing up a will, assigning a power of attorney (both financial and medical) and setting up a trust. Power of attorneys give someone the right to make decisions for you in the event that you can not make them for yourself. This should only be given to someone whom you trust to make decisions in your best interest.
Teaching children early will help their personal finance improve and enable them to have a strong idea of the value of things. Teaching ones children will also help the parent brush up on their basic personal finance skills. Teaching children to save can also help enforce the idea on parents.
A great personal finance tip is to make sure you buy appliances that will help you save energy. Appliances that can help you save energy usually have an Energy Star sticker on them. Purchasing these appliances can go a long way in helping you save money by reducing energy.
Pay more than your minimum amount due on school loans, mortgages, credit cards and any other kind of loan. It is going to help you save a good bit of money over the course of the loan. Much of your monthly payments are going to the interest and paying extra is going toward your principal.
So there you have it. Not such a scary subject now, is it? Armed with the advice presented in this article, you now have the knowledge you need to tackle your finances with a little more confidence than before. Who knows, over time you may even look forward to long term financial planning!
