Everyone has issues with, or questions about, their personal finances at some point, and it can be hard to find reliable answers. Whether you are dealing with a minor question or a major issue, this article can help give you the answers and advice you need to keep your personal finances in order.
Set yourself a monthly budget and don’t go over it. Since most people live paycheck to paycheck, it can be easy to overspend each month and put yourself in the hole. Determine what you can afford to spend, including putting money into savings and keep close track of how much you have spent for each budget line.
Don’t get talked into quick money making schemes. It can be very tempting to give up your savings account to someone who promises to double or triple your money in a short period of time. Take the safe route, and realize that nothing is free. You will be better off slowly and steadily growing your savings rather than risky moves to get more faster. You could end up losing it all.
Don’t leave your wallet or purse unattended. While thieves may not take your cards for a spending spree, they can capture the information from them and use it for online purchases or cash advances. You won’t know it until the money is gone and it’s too late. Keep your financial information close at all times.
If you have fallen behind on your mortgage payments and have no hope of becoming current, see if you qualify for a short sale before letting your home go into foreclosure. While a short sale will still negatively affect your credit rating and remain on your credit report for seven years, a foreclosure has a more drastic effect on your credit score and may even cause an employer to reject your job application.
To best manage your finances, prioritize your debt. Pay off your credit cards first. Credit cards have a higher interest than almost any other type of debt, which means they build up high balances faster. Paying them down reduces your debt now, frees up credit for emergencies, and means that there will be less of a balance to collect interest over time.
If feasible in your area, try getting around without a car. Between car payments, gas, insurance, and parking, the dollars spent on owning a car can really add up. It isn’t possible for everyone, but if you can try using public transportation or your own two feet to get around.
If you are a college student, make sure that you sell your books at the end of the semester. Often, you will have a lot of students at your school in need of the books that are in your possession. Also, you can put these books online and get a large percentage of what you originally paid for them.
By giving yourself a good education on the basics of personal finances, you’ll find that you will have a much easier time maintaining financial equilibrium. If you remember what you’ve learned from this article and make use of the tips and advice it contains, you’ll be able to put yourself on a firm financial footing.