Pointer On The best ways to Handle Your Personal Finances

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    15-Aug-2015

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  1. 1. Pointer On The best ways to Handle Your Personal Finances Getting your personal finances under control is key to long term success. This involves incorporating effective budgeting strategies into your lifestyle. So, why does living on a budget feel like such a strain on your lifestyle? It does not have to feel this way. Living on a budget, while still living well, is possible. In this article, we will discuss some practical advice. 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. Financing real estate is not the easiest task. The lender considers several factors. One of these factors is the debt-to-income ratio, which is the percentage of your gross monthly income that you spend on paying your debts. This includes everything from housing to car payments. It is very important not to make larger purchases before buying a home because that significantly ruins the debt-to-income ratio. By using coupons whenever possible one can make the most of their personal finances. Using coupons will save money that would have been spent without the coupon. When thinking of the savings as bonus money it can add up to a monthly phone or cable bill that is paid off with this bonus money. If you have managed your finances well enough to own a home and have a retirement account, don't jeopardize those by borrowing against them later. If you borrow against your home and can't repay it, you could lose your home; the same is true for your retirement fund. Borrow against them only in dire situations. Get rid of your credit cards to improve your financial situation. Credit cards charge huge interest rates and their fees can be massive as well. It can also be very tempting to run up a larger balance than you can comfortably pay off each month. Instead of plastic, give cash only a try. Radio talk show host Neal Boortz once advised when it comes to saving money that you should never spend a one dollar bill. You should put that dollar bill in a https://onedrive.live.com/redir?resid=CD5CB5178D433F76%21121 coffee can and never spend it, and every time you get one, put it in there. You would be surprised at how many one dollar bills you save by not getting this little item or that. Try to avoiding using your credit card unless it is absolutely necessary. For smaller purchases, go the cash route. New legislation allows stores to require a credit card minimum of $10 for transactions. Make sure to carry cash or a debit card if you intend to make under $10 in purchases. When it comes to paying off your loans and credit card balances, always try to pay as much over the monthly minimum as is possible. While this may decrease your amount of free cash every month, it will http://www.adp.com/tools-and-resources/calculators-and-tools/payroll-calculators.aspx ultimately result in significant increases in savings over a period of many months or a year.
  2. 2. Find out if you will get a discount for making your payments automatically. Many times if you mail your payment you will be charged as much as $5.00 per month. You may find that there is a nice discount for you if you set up an automatic payment through your checking account or credit card. When it comes to paying off your loans and credit card balances, always try to pay as much over the monthly minimum as is possible. While this may decrease your amount of free cash every month, it will ultimately result in significant increases in savings over a period of many months or a year. Sticking your head in the sand and pretending that your personal finance issues will just go away serves no one. You will cost yourself more money and more stress in the long run by not dealing with issues head on. Take a proactive approach and work with your creditors to set up payment plans. Set aside a portion of one day each week to devote to your finances. You may use a portion of this time to: discuss moving payment due dates with companies you owe; or just quickly review what bills will be due soon. Dedicating a little time each week will keep you from missing payments and having unnecessary late fees. Younger people looking to stay out in front of their finances would do well to discover the wonders of compounding interest. Save a little from what you earn in a savings account. Nobody is perfect, particularly when it comes to managing personal finances. If you bounce a check once, you may be able to request that the fee is waived by your bank. Of course, this is a one-time thing that banks offer only to those who maintain a positive balance and manages their account effectively. If you like using grocery coupons, but wish you didn't have to spend so much money on newspapers,
  3. 3. try getting a special deal from your newspaper distributor. In many areas, if you subscribe to receive 5, or more papers per week, you can get them for a large discount, even up to half price. The amount of coupon savings in a Sunday paper will pay for your subscription many times over! Plan your retirement well in advance. Ask your employer about a 401(k) plan. Subscribe to one if, your employer can offer you this option. You should look into an IRA if, you cannot get a 401(k) plan. Find a good retirement plan as early as possible, then you have time to save up enough money. A great personal finance tip is to forget about name brands, especially when you're going grocery shopping. A lot of the name brand stuff is expensive just because of the brand itself. What people don't know is that you can get the same quality products from generic name brands. Instead of letting yourself get lost in a pile of debt, learn how to manage your finances and spend your money wisely. Balancing a checkbook, keeping receipts and making a budget will all help you make the most of your income, no matter how much money you make each year.