Personal Finance Tips

Reach For The Stars With These Personal Finance Tips

Economic times are hard, and you’re not alone if you’re feeling the effects of the economy on your personal pocketbook. While financial problems can be devastating and worrying, they are not permanent. Below are tips to help guide you on personal financing so you can get out of debt and/or start planning for the future.

Improve your personal finance skills with a very useful but often overlooked tip. Make sure that you are taking about 10-13% of your paychecks and putting them aside into a savings account. This will help you out greatly during the tough economic times. Then, when an unexpected bill comes, you will have the funds to cover it and not have to borrow and pay interest fees.

A great way to gain more control over your personal finances is to convert from card to cash for small items, like when buying coffee or snacks, and set a weekly limit. This’ll mean you pay much closer attention to how much you’re spending on what might seem like small items, but in fact are expenses which add up really fast.

To be truly financially stable, you should have a good deal of savings. If you do not have much saved up yet, open a savings account and get the ball rolling. A savings account may prevent you from sinking into a loan if disaster strikes. The account becomes your safety net that grows through time. You might not be able to contribute as much as you would like each month, but every little bit helps.

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 you have more than one student loan, consider consolidating them. Consolidated loans can be locked in at a low interest rate, often lower than the interest rates on your original loans. You also have the option of extending your loan payoff period if need be. Contact the agency that holds your student loans to see if you qualify.

If you save your change from cash purchases, it can accrue over time to a nice chunk of money, that you can use to supplement your personal finances anyway you want. It can be used for something that you have been wanting but couldn’t afford, such as a new guitar or if you want to make it work for you, it can be invested.

Drink water when you are eating out! Some restaurants charge almost $3.00 for a soda or glass of tea! When you’re trying to manage your personal finances you just can’t afford that! Order water instead. You’ll still be able to eat out on occasion but over the long run you’ll save a bundle in the cost of drinks alone!

Don’t let the economy get you down! Fight back by having a plan for your personal finances, debts, and future endeavors. The tips above will help you on your personal journey to a good financial situation. Once you are set up with a financial plan for the present, start planning for the future to avoid the stress of last minutes scrambling to pay debts.