Personal finance can be easily managed, and savings can be built up by following a strict budget. One problem is that most people live beyond their means and do not save money regularly. In addition, with surprise bills that pop up for car repair or other unexpected occurrences an emergency fund is essential.
You need to meet certain qualifications before you can rent an apartment. Be sure you have verifiable income, acceptable credit, and enough funds for the security deposit and the first month’s rent. Don’t forget that if you have less than perfect credit, the electric, gas, phone, and cable companies usually ask for a security deposit before they establish service under your name.
Pack one suitcase inside of another. Almost every traveler comes home with more stuff than they left with. Whether souvenirs for friends and family or a shopping trip to take advantage of a good exchange rate, it can be difficult to get everything back home. Consider packing your belongings in a small suitcase, then put that suitcase into a larger one. This way you only pay for one bag on your trip out, and have the convenience of bringing two back when you return.
If you can afford to do so, open an installment account, such as a loan or car payment. These will add extra weight onto your credit profile and will increase your credit score as long as it stays within your debt to income ratio. Be careful and only take on debt you can afford.
College education can be very expensive, academic scholarships can be a huge help in financing your education. Academic scholarships are awarded for excelling in school. Those who receive academic scholarships had an acceptable GPA, excelled in their studies, and the college would like that individual to continue studying at their school.
To get out of debt faster, you should pay more than the minimum balance. This should considerably improve your credit score and by paying off your debt faster, you do not have to pay as much interest. This saves you money that you can use to pay off other debts.
Instead of maxing out one card, try to use a couple of them. The payments on a maxed-out account is more than the combined interest of two cards with smaller balances. The lower amount will be less of a burden to your credit, as long as you stay in control of both cards.
Trade in your gas guzzler for an economical, high miles per gallon car. If you drive a truck or SUV that gets bad gas mileage, you may be able to cover the monthly payments for a new car with your gas savings. Calculate what you spend on gas now with what you would spend in a car that gets 30mpg or higher. The savings might shock you.
Try using cash to pay for all of your purchases next week. When you buy goods with cash instead of plastic credits cards, it is easier to see exactly how much money you are parting with. Also, if you don’t have a credit card on your person you can avoid impulse buys.
Maintain at least two different bank accounts to help structure your finances. One account should be dedicated to your income and fixed and variable expenses. The other account should be used only for monthly savings, which should be spent only for emergencies or planned expenses.
Never withdraw a cash advance from your credit card. This option only rears its head when you are desperate for cash. There are always better ways to get it. Cash advances should be avoided because they incur a different, higher interest rate than regular charges to your card. Cash advance interest is often one of the highest rates your card offers.
To help you to save money, set up an automatic transfer to your savings account every pay period. Making the transfer automatically helps you to get used to the idea of saving. It also prevents frivolous spending before the money can be saved. You won’t miss what you don’t see, so automate your savings process today.
Make sure you have at least six months worth of savings in case of job loss, injury, disability, or illness. You can never be too prepared for any of these situations should they arise. Furthermore, keep in mind that emergency funds and savings must be contributed to regularly for them to grow.