In these uncertain times, keeping a close and careful eye on your personal finances is more important than ever. To make sure you’re making the most of your money, here are some tips and ideas that are easy to implement, covering just about every aspect of saving, spending, earning, and investing.
If you don’t already have one, open an IRA. You can contribute catch-up funds anytime throughout the year to get your maximum interest. This is also tax deductible. So, if you need to find a few more ways to raise those deduction amounts, it’s better to pay yourself, than uncle Sam.
Quite often it is said that if you make more you spend more. The biggest tip I can offer in that case is to try to live below your means. If you can afford that luxury $1000 apartment, don’t! Live at a more modest $700 dollar one and pocket the difference perhaps to use as a down payment on a house.
To best manage your finances, prioritize your debt. Pay off your credit cards first. Credit cards have a higher interest than almost any other type of debt, which means they build up high balances faster. Paying them down reduces your debt now, frees up credit for emergencies, and means that there will be less of a balance to collect interest over time.
Coffee is something that you should try to minimize in the morning as much as possible. Purchasing coffee at one of the most popular stores can set you back 5-10 dollars per day, depending on your purchasing frequency. Instead, drink a glass of water or munch on fruit to give you the energy you require.
An important tip to consider when working to repair your credit is to make sure that you do not get rid of your oldest credit cards. This is important because the length of time that you have had a credit is extremely important. If you plan on closing cards, close only the newest ones.
Feel free to take advantage of paperless billing and paperless bank statements, but be careful not to become senseless on personal finance matters. The pitfall lurking in paperless finance lies in how easy it becomes to ignore your month-to-month finances. Banks, billers, or even thieves, can take advantage of this willful ignorance, so force yourself to review your online finances regularly.
One of the best ways to improve your finances is to purchase the generic brand of products. The next time you are in the supermarket, purchase the store brand cereal, which can taste just as good as the higher priced, marketed brand. This can save you a lot of money when projected out over the year.
Flea markets can often be a productive way for one to supplement their personal finances. An individual can purchase goods for a cheaper price than they would pay in stores or they can sell items at the flea market for a financial gain. However a person wants to use them, flea markets are beneficial for personal finances.
Pack your lunch. Most people spend the most money in their day during lunchtime. This is because most people get up and don’t make time to prepare lunch before work. That means they have to pay out of pocket for lunch unless they wait for dinner. Making a quick lunch will save that money.
These tips will help you save more, spend wisely, and have enough left over to make smart investments. Now that you know the best rules of the financial road, start thinking about what to do with all that extra cash. Don’t forget to save, but if you’ve been especially good, a small personal reward could be nice too!