Not a lot of people want to talk about their personal finances. Its a taboo subject that has also become a bit of a sore subject in recent years and people have less and less money in their bank account. Our financial life has become one of survival instead of planning for the future. Below you will find information and suggestions on how you can have both. You can survive any economic state and still have a plan for the future.
Set up a bank account for emergency funds, and do not use it for any daily expenses. An emergency fund should only be used for any unexpected expense that is out of the ordinary. Keeping your emergency fund separate from your regular account will give you the peace of mind that you will have money to use when you most need it.
Because the times are quite volatile, it can be a good idea to keep your savings in a number of smaller accounts. Besides maintaining balances in checking and savings accounts, invest in stocks, mutual funds, gold, and t-bills. By using some of these ideas, or even all of them, you’ll be able to safeguard your money.
Keep your checkbook balanced. It’s really not so hard and can save you the expense and embarrassment of bounced checks and overdrawn fees. Do not just call the bank for a balance and count on having that amount in your account. Some debits and checks may not have cleared yet, resulting in overdrafts when they hit the bank.
If your bank charges high monthly fees just for the privilege of keeping a checking account, consider switching to a credit union. Most people are eligible for credit union membership based on where they live or work or organizations they belong to. Because credit unions are member-owned, they do not have to make profits like banks do and so they generally offer much better deals.
Sit down and add up all the money that you have coming in to the house each month. Then sit down and add up the amount that your monthly bills cost. Subtract the money you spend on your bills from your monthly income. The number you come up with is the amount of money you have to spend on everything else – food, clothing, medicine, luxury items, etc. Don’t go over this amount. This will insure that you have enough money to pay all of your bills and aren’t spending more than you’re earning.
If you have a parent or other relative with good credit, consider repairing your credit score by asking them to add you an authorized user on their card. This will immediately bump up your score, as it will show up on your report as an account in good standing. You don’t even actually have to use the card to gain a benefit from it.
Get yourself a credit card that pays rewards. If you pay your credit cards off each month, a rewards credit card is ideal for you. Run all of your monthly expenses, including groceries, gas and your daily Starbucks, through the card. Bankrate.com can help you find the card that pays the highest rewards for the types of spending that fits your lifestyle.
Think carefully about your feelings toward money. If you would like to better your own personal financial situation, you will only be able to do so once you understand the money decisions you’ve made so far. Take the time to write down your feelings about money and possessions, and do your best to understand where those feelings come from. This will enable you to tackle your financial future more successfully.
Your future is your own. Only you can make the choices you need to in order to secure a good financial picture for yourself. The suggestions that were outlined here are a way for you to gain control and do the hard work necessary to make tomorrow a little financially brighter.