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March 9, 2013

Great Tips To Get Your Personal Finances Under Control

Finances are often an unpleasant fact of life. Sometimes it looks like your money is being sucked into a vacuum to pay all of your extra expenses. Still, you can learn better ways to manage your money.

TIP! Small steps can help you get your personal finances in the right shape. For example, stop buying coffee in coffee shops and make it at home.

Everyone should have a liquid savings account. Preferably, this should be a high-yield savings or money market account. Many of these banks are online, and they are all FDIC insured.

Monthly Expenses

TIP! To create a emergency fund setup, an automatic transfer amount to your savings. An emergency fund could save your home in the event of a job loss or a personal injury.

Having a written budget is important in achieving success in your personal finances. Whether on your computer or by hand, start by writing a list of all of your monthly expenses. Include both large and small expenses, because everything adds up. Make sure your list is thorough and contains all possible expenses. Add up your anticipated monthly expenses, and make sure you don’t spend more than what you have left after paying them.

Having the proper health insurance policy is crucial in protecting your personal finances. Everybody is going to get sick sometimes. This is why you have to be sure you’re getting the best health insurance you can afford. Doctor, hospital and prescription medication costs can total thousands upon thousands of dollars. Without insurance, this can be quite a burden.

TIP! Stay on top of your credit score. There are a lot of ways to see your credit report at no cost.

Reduce any purchases of bottled water during your college career. You can drink simple tap water because bottled water is overpriced. If you hate the taste of it, then consider buying a filter to install on your faucet. You could also buy flavored drink mixes to put into your water. Both these options can make the water taste better and help you avoid bottled water permanently.

This fund should not contain under three months income. Consider putting ten percent of your pay into a savings account that will provide you with high interest.

Avoid investing in poorly performing stocks out of a sense of loyalty. Do not stick with investments that aren’t yielding you money.

Your FICO score is largely affected by credit card balances. Your score may be lower if your credit cards have a high balance. If you want to lower your score, pay off your balance. Ideally, your balance should remain at less than 20 percent of your credit line.

TIP! Don’t pay full price for everything to help your budget. You might want to change from the usual brands you buy and only get them when you have a money off coupon.

Make sure you file your taxes on time. If you know you have a refund coming, file as soon as possible. If you owe money, it may be wiser to file your taxes just before the due date in April.

Nobody wants to end up losing their home. Consider getting a cheaper house with cheaper rent or payments if you’re in a bad place financially. You do not want to get evicted from your house because you do not have enough money to make the payments. You might want to act before you have issues.

TIP! Prevention is the best remedy for credit card debt. Think carefully before making any charge to your credit card.

Make it your goal to eliminate the use of credit cards. Furthermore, find ways to pay off your loans that are charging you interest on a monthly basis. If you wait before making these payments, your interests will quickly add up and you will end up paying more than these items are worth.

Hopefully, this article has helped you realize what you need to do in order to save money. Be patient with improving your finances as it could take some time. Like weight loss, it won’t happen overnight. Be patient and stick it out and you will see positive changes.

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Filed under Personal Finance by Alan Sawyer

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