Given the current state of the economy, people are doing everything they can to stretch their dollars. This is necessary to be able to make purchases for essential items, while still having a place to live. The following personal finance tips will help you to get the most out of the limited amount of money that you have.
Listen to logic, not emotion; keep calm and avoid making decisions due to panic or excessive excitement. Starting with small accounts can make it easier to keep emotions in check. If you keep your cool when making decisions, you will have an easier time following your initial plan consistently and meeting the goals you set for yourself.
If you don’t feel comfortable selling, don’t do it. If you are earning a decent amount of money on a stock, let it sit for a while. Focus on the stocks that aren’t doing well. You can decide whether you want to sell these stocks.
Learn the signs of financial distress to a lender and avoid them. Suddenly opening multiple accounts or attempting to are huge red flags on your credit report. Using one credit card to pay off another is a sign of distress as well. Actions like these tell a prospective lender that you are not able to survive on your current income.
Sometimes it’s a good idea to take the “personal” out of “personal finance” by sharing your financial goals with others, such as close friends and family. They can offer encouragement and a boost to your determination in reaching the goals you’ve set for yourself, such as building a savings account, paying off credit card debts, or creating a vacation fund.
To find out where your money is going record all of your spending. For at least a month, write down every single time you spend money, and what you are spending the money on. After you have done this for the month, review your spending habits and make changes as necessary.
Whenever you get a windfall such as a bonus or a tax return, designate at least half to paying down debts. You save the amount of interest you would have paid on that amount, which is charged at a much higher rate than any savings account pays. Some of the money will still be left for a small splurge, but the rest will make your financial life better for the future.
As a college student, you will want to reduce the amount that you spend on books and supplies. Instead of purchasing books at the campus bookstore, which is usually at retail price, make friends with upperclassman who can give you these books at a discount. This can save you hundreds of dollars per semester.
Not only are older appliances less efficient at performing their job, but they can also be a significant drain on your monthly energy consumption. Newer high-efficiency models are a wise investment that can save you money and ensure that your home is a safe environment in which your family can eat, live, and play. Replace microwaves every decade, washers and dryers every thirteen years, and stoves and ovens every fifteen years.
Your FICO score is based on the balances of your credit cards. The bigger your card balances get, the more they’ll be able to harm your credit score. Your score will improve as you pay off debt. Reducing your total amount of credit can play an integral role in improving your financial position.
If at all possible, pay off your credit card balances in full. Only put as much as you can pay off on the credit card each month. It will show that you are a responsible borrower and it will increase your credit rating as well as make it easier to take out lines of credit in the future.
Make sure that you are only paying for the amount of home insurance you need. You cannot file a claim for more than the value of your house and it’s contents, so having high insurance coverage could mean you’re paying for something you can’t even use. Do an inventory of your house and get a rough estimate of what you would claim, then speak to your insurance agent to make sure that your coverage matches that amount.
As stated before, people are trying their hardest to make their money go further in today’s economy. It takes a lot of thought to decide what to spend money on and how to use it wisely. Luckily, the personal finance tips from this article will allow you to do just that.