When you take the time to organize and budget your income and expenses, your financial needs become much clearer. It can seem as if you always have more and more expenses. In spite of this, you can learn ways to more effectively deal with your money. Doing this will help you to save money instead of wasting it away!
While it is important to ask around about what you should invest in, it is necessary that you follow your own intuition in the end. Ultimately, it is your money that you are investing. Therefore, you have to make sure that you believe in every investment that you make.
When it comes to finances one of the most intelligent things to do is avoid credit card debt. Only spend the money if you actually have it. The typical ten percent interest rates on a credit card can cause charges to add up very quickly. If you find yourself already in debt, it is prudent to pay early and often overpay.
Always know when it’s time to file taxes on your income with the IRS. To get your money faster, file your refund as early as you can if you are expecting a refund. It’s better to file closer to the due date of April 15 if you owe money to the government.
Extended warranties can bring down your personal finance. Just about every product made, comes with a warranty that lasts for 90 days or even up to a year. This is when the components are most likely to break. By purchasing an extended warranty, you could potentially just be throwing money away. This is especially true with electronics because they improve so rapidly, that you will end up buying a new one, before the warranty is up.
Set up an automatic overdraft payment to your checking account from a savings account or line of credit. Many credit unions and banks do not charge for this service, but even if it costs a little it still beats bouncing a check or having an electronic payment returned if you lose track of your balance.
If you are engaged to be married, consider protecting your finances and your credit with a prenup. Prenuptial agreements settle property disputes in advance, should your happily-ever-after not go so well. If you have older children from a previous marriage, a prenuptial agreement can also help confirm their right to your assets.
If your finances are such that you can’t afford to put a sizeable down payment on a new car, you can’t afford that car. Cars depreciate extremely quickly, and unless you make a large payment up-front, you will end up upside-down on that loan. Owing more than the worth of your car makes it difficult to sell the car and can put you in a bad position if the car were to be wrecked.
Prevention is the best remedy for credit card debt. If you are about to whip out the plastic, say “Hold it!” and take a minute to rethink things. Figure out a time frame on paying down your debt. If you cannot pay it in full in one month and it isn’t completely necessary, you ought to avoid it.
Avoid disaster by saving money for emergencies before those emergencies happen. You should also put money away for long term spending goals like college tuition, or a relaxing vacation.
Be sure that utility bills get paid on time each and every month. A habit of paying bills late can have negative effects on your credit rating. On top of that you will most likely incur late fees which only drain more money from your wallet. It is not worth having a headache because you had to pay late; always pay on time
Never base a tax investment on current tax laws. Do not buy real estate if your turning a profit on it relies heavily on the current tax laws of your state. Tax laws are often subject to change. You do not want to find yourself out a lot of money just because you didn’t properly plan ahead.
Shop the dollar stores. You can often buy the same products in dollar stores for a fraction of the price you would pay in bigger department stores. Whether you are buying toothbrushes, over-the-counter medicines, cosmetics or any one of hundreds of other products there are big savings to be had in dollar stores.
It is never too early to teach children about personal finance and savings. If they earn an allowance, have them set aside a percentage into a piggy bank or a savings account (if they’re old enough to have one). They can also do the same with money they receive for birthdays or holidays.
After reading this article, you should understand better how to save, despite the miscellaneous and unexpected expenses that often come up. Do not be alarmed if you have to wait some time before your financial situation improves. Managing your finances is similar to dieting; changes will not happen instantly. Keep going, and you’ll notice changes, in time.