Personal finances should be a concern for any adult who must pay for bills, including housing, electricity, food or gas. Managing a list of what you must pay for and how much you make each month, can make it easier to see where your money goes, especially with a budget.
Shop around before committing to a specific lender for financing. Talk to several loan officers, and always get terms on paper. You can also let the loan officer know of other rates you have been quoted, giving them a chance to compete for your business. Be sure to not only compare interest rates, but additional fees and charges as well.
When you go to the bank or a mortgage broker and you get pre-approved for a loan you should subtract 20 percent off of the amount that they are offering to lend you and only take that amount. This will keep you safe from any unexpected financial situations that may come up.
Buying certain items in bulk can save you money over time. Items that you know you will always need, such as toilet paper or toothpaste can be bought in bulk quantities at a reduced prices to save money.
Having patience can be a good money-saver when it comes to shopping. The thrill of new technology convinces many people to buy electronics as soon as they are released. It would help to wait a while, since electronics prices decrease as time passes. This way, you will have extra money to spend on other things.
If you have a good credit score, be careful about co-signing for someone, especially if they have a bad score or are not likely to pay off their debt. Co-signing does not improve your own score in any way and puts a lot of pressure on you. Do it if you are sure that the person you are co-signing for can do the same for you.
If a credit card is close to its limit, consider transferring portions of the balance to a different card. Having a card that is almost maxed out is a huge blow to your FICO score. Transferring part of the balance will even up the credit you have available on your cards.
Keep your checkbook balanced. It’s really not so hard and can save you the expense and embarrassment of bounced checks and overdrawn fees. Do not just call the bank for a balance and count on having that amount in your account. Some debits and checks may not have cleared yet, resulting in overdrafts when they hit the bank.
The balance you have on your credit cards make a big difference in your credit score. The bigger your card balances get, the more they’ll be able to harm your credit score. Once you begin to whittle down the balances, your score is sure to rise. The best goal to keep is limiting the balance to no more than 20% of the allowed maximum credit.
By carefully governing your cash inflow and outflow, it will be easier to manage your situation. Monitor your expenses and income, and evaluate your property’s performance at least once a month. Ensure you have a budget written down to look to as a guide.
If money is tight it might be time to stop driving altogether. The cost of car ownership is extreme. With a car payment, insurance, gas, and maintenance, you can easily spend five hundred a month on your transportation! A perfect alternative to this would be the city bus. A monthly pass usually costs around a dollar a day. That’s over four hundred seventy dollars of savings!
It is not uncommon for a person to slip up when managing his or her finances. You can request a waived fee for a one-time bounced check from your bank. These tricks are for people who knows what they are doing when it comes to keeping up with balances and not overdrawing their account.
A great personal finance tip that can save you money is to splurge and treat yourself when you’ve reached your savings goal. Rewarding yourself like this can keep you happy and it can help you save more money in the future because you’ll be looking forward to rewarding yourself.
You should get comfortable with the fact that major improvements to your personal finances can be made a little bit at a time. Instead of purchasing a cup of coffee every morning, brew your own at home or at work. Brewing your own coffee can save you about $25 a week. Instead of driving your car to work, which will reduce wear on your car and prices on fuel, take the bus. That saves you money on gas and car maintenance. Small savings will add up over time, and you can be saving that money for retirement, or a big item that you want to purchase. Enjoying such rewards can be sweeter than any cup of coffee.
Most financial planners agree that the most important step you can take to strengthen your finances, is to pay down your credit card debt. There is a simple and logical reason for this. If the average interest on a consumer’s credit card debt is fifteen percent, he would need to find an investment paying a guaranteed rate equal to that, in order to justify not paying that credit card off.
If you make too much money to qualify for Chapter 7 bankruptcy or want to retain your assets, file for Chapter 13 bankruptcy instead. This type of bankruptcy allows you draw up a payment plan in which you pay the trustee a specified amount each month, which is then disbursed to your creditors. If you make timely payments over the life of the 3-5 year plan, the rest of your debt is wiped out.
As stated in the beginning of the article, it is very important to realize how you are spending your money. Simply cutting out one meal at a restaurant each week, or one less pack of cigarettes, can make a world of difference in the long run. Use these tips and see the benefits quickly!