7 Personal Finance Tips That Everyone Should Know Fall is a good of year to analyze your financial health. You can take a look at finances to see if you've stuck to any of the New Years resolutions that you had at the beginning of the year. If you were one of the fortunate to be able to be financially sound all year- great job! For everyone else, it's a second change to analyze spending and debt. You can make a conscious decision about the rest of the year regarding your finances . Some people may do better with a 3-4 month window of cutting costs and trying to save money. After all, most people try to get their finances in order before the holidays as that is usually time of year when people tend to spend more and can very easily get into a tricky financial dilemma. Here are my top 7 personal finances tips that everyone should know: 1. Get out of Debt- I know it definitely sounds easier than in actually is. Getting control of your spending and actually taking the time to analyze where your money is going will help you to get out of debt quickly. Make the most of every dollar EVERY TIME. I couldn't believe how much money I spent on frivolous purchases. Keep essential expenses like housing to 50% of your income. Then allocate 30% for wants and 20% for savings and debt pay down. This is referred to as the 50/20/20 budget. This is a tried and true way to keep you on track to financial freedom. People who are in debt someone also consider a part time job or other side hustle to get their debt paid down faster. There are numerous part time jobs that you can do; some from home, others with little to no effort. Whatever you decide to do, keep your eye on the prize- ELIMINATING DEBT. Depending on how much debt you have, you may only have to do it for a short time.
2. Analyze your Spending- Your spending habits have to be aligned with your values. You have to be able to live within your means. Beyond the golden rule—spend less than you earn—it’s hard to be prescriptive because expenses are the result of so many individual decisions, many of which feel inconsequential as we make them.Take note of transactions that don’t align with your values or needs. And ask yourself if you could have lowered the cost of the keepers—did you compare prices while grocery shopping? Did you look for a coupon code or rebate to get a better price on an online purchase? Could you opt for a less expensive gym membership or newspaper subscription? 3. Pay off credit cards in full every month.There is a common myth that carrying a balance on your credit card from month to month can benefit your credit scores, but that is not true. Ideally, you should pay off your credit card in full every month. Leaving a balance will not help your credit scores. All it will do is cost you money in the form of interest.Interest rates on credit cards can be very high. One thing to always be especially careful of doing, it paying for something with a credit card and then having to inadvertently pay 5 times the cost due to high interest rates. Make it a personal goal to pay your credit card bill on time , in fully monthly. ForexMentor.com : Click Here to take advantage of the unique features of currency trading as an alternate form of wealth building 4. Make Extra Payments- When you pay extra payments directly on the principal, you are lowering the amount that you are paying interest on. It can help you pay off your debt much more quickly. ... The key is to make extra payments consistently so you can pay off your loan more quickly. 5. Do Not Cosign For Anything . Ever been asked to be a cosigner for a car? On paper, it sounds like you might be helping someone out. Maybe your spouse needs help with that vehicle purchase or it’s your child’s first car. Unfortunately, there are often more reasons not to cosign than there are exceptions.
There’s a lot on the line, especially when it’s a personal loan with a cosigner (namely you) to help move things along. While you might think you’re helping someone, how that person conducts themselves when it comes time to settle up with the lender can reflect negatively on you.
The reality is, if the lender felt the original debtor could pay back the loan on their own, they wouldn’t need a cosigner. You might cosign on a loan for a car you’re not driving or a mortgage for a house you don’t live in, but that doesn’t change your liability. Your credit score benefits only slightly from the monthly payments. And since you qualified as a cosigner because of your good credit, you don’t necessarily need more credit lines.
By cosigning a loan, you take on all the risk if the loan is not repaid but may only see a modest improvement to your credit score choose not to repay or fall on especially hard time, you are now responsible for paying it back. 6. Pay off your student loans.Part of providing for yourself after graduation may involve paying off student loans, which can be a major responsibility. Check out my E-book : A Guide To Paying Off Student Loan Debt now available on Amazon https://amzn.to/2k6osno 7. Do not borrow from your retirement accounts. Dipping into your 401(k) plan is generally a bad idea. But that advice doesn't deter about a quarter of the people who hold one of these accounts from making a raid on their funds. Most 401(k)s allow you to borrow up to 50% of the funds vested in the account, to a limit of $50,000, and for up to five years. Because the funds are not withdrawn, only borrowed, the loan is tax free. You then repay the loan gradually, including both the principal and interest. Interest rate on 401(k) loans tends to be relatively low, perhaps one or two points above the prime rate, which is less than many consumers would pay for a personal loan. Also, unlike a traditional loan, the interest doesn't go to the bank or other commercial lender, it goes to you. Since the "interest" is returned to your account, some argue, the cost of borrowing from your 401(k) fund is essentially a payment back to yourself for the use of the money.
How do you start Aggressively Saving? That may be a new and very scary concept for most people, but with a clear cut plan, it can be eye opening and necessary. If you want to be able to save more, there are three choices: 1. Spend Less Money 2. Earn More Money 3. Some Combination of the Two To aggressive start saving, you MUST cut spending. There are so many ways to start achieving that goal. Here are some to get you going on the right path. Conduct a spending audit with your personal/miscellaneous expenses. I think most people have a good idea of how much they spend on food, shelter, transportation, and clothing but have no idea just how much they are spending on everything else. A great place to find low hanging fruit is by conducting a spending audit on the places you like to go and the things you like to do. From expensive hobbies, traveling, entertainment and gifts, these types of places where we spend money can add up very quickly. Am I sayi...
As we are in the middle of a world-wide pandemic, many things seem uncertain. The outbreak of COVID-19, constantly changing behavior expectations to attempt to contain the virus (when will schools and offices re-open?), and intense market volatility it’s no surprise that many of us are feeling that way. . Unemployment rates are the highest they’ve been …ever. Millions of people are unemployed and have no foreseeable outlook on the future as of right now. Many people are getting laid off or having reduced hours at work in order to try to control the virus. We are in uncertain times and this scares lots of people. It honestly scares me. You want to try to control every aspect of your budget especially at these times because you don't know how much longer we will be going through this. It seems almost unimaginable that things have gotten this far and this is the world that we are currently living in. In 2020 it seems almost incomprehensible that this has happened and we a...
My Top 10 Money Saving Tips 1. Open up a high-interest savings account. 2. Set up automatic withdrawals from your checking to your saving account after payday. 3. When it’s time to fill up your gas tank, check out GasBuddy first for the best deals.. 4. Have a rainy day fund that has one to two month’s worth of expenses saved up. 5. Have a longer-term emergency fund of three to six month’s worth of expenses. 6. Negotiate your Internet, phone and cable bills to lower your costs. 7. Save money by paying premiums annually instead of month to month. 8. Use any windfalls of cash from a tax refund, birthday gift, or work raise to pad your savings account. 9. Batch cook your meals on the weekend so you’re prepared for the week ahead. 10. Consider walking, biking, or taking the bus to save money on transportation.
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