Personal financing involves sets of individual decision making or family units that can include credit cards and consumer loans, checks and savings accounts, retirement plans, investments in the stock market, insurance policies, social security benefits, and income tax management. It is common knowledge that people know (or at least have to know) how to spend their money efficiently maximize the benefits and keep the amount divided as a savings money. Unfortunately some circumstances in life tend to make them excessive and eventually end debt.
That is a serious money management problem there! So if you are not sure what to buy or how to spend your money, try these tips.
1. Don’t spend beyond your means – The first mistake done by people in managing their money is that they spend time surpassing. So remember this, Money Management 101: Maintain your maximum expenses to less than 80% (ideal numbers are 65%) from your budget and remain the rest for emergency purposes.
2. Don’t jump out of your budget fence – actually this second tip is very similar to the first. But do you know why we mention it again? That’s because we emphasize this subject and we want you to save money rather than spending it.
3. Pay your credit card balance – this is the reason why you end up in debt, and with too many credit card temptations just buy whatever you want will only circle in your head. So track the number of credit cards that you have and the outstanding balance you have on each.
4. Pay for your retirement plan – Paying the contribution of your retirement plan will not hurt you, you know. Just think, when you will be 60 years old, you won’t be able to get a job and if you don’t have a family to find you then you will not live a very easy life, especially without retirement benefits.
5. Have a savings account – besides having a pension or retirement plan, it would be better to have a sufficient savings account!
6. Enter business – if you have saved enough money, try to spend it in something you can get profit from – business or stock market. Foreign exchange trading has now become easy and inexpensive some online forex trading companies will help you with only $ 100.
7. Take advantage of the benefits of your work
8. Evaluate your insurance coverage – Check the insurance plan you pay and make sure you don’t pay for something more than you need.
9. Write and update your last will – Protect the rights of your family and write your last wish and update it constantly. You can buy a new car and you don’t mention it in your will and they might lose it than inherit it.
10. Save a good note – Make sure you save all receipts and other expenses so you will have no trouble finding it when the tax season comes. Or it’s better not to hire an accounting company to handle this for you and it’s of course if you get big and you have money to do it.