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September 2018

Regaining Control of Your Personal Finance

It is very easy to spend money on different things, but when it comes to “Savings”, it becomes a bit difficult for many people to stop buying things, which are least important for their satisfaction.

Personal finance covers everything involving your money, from managing how to spend your money to knowing how to invest your money. It is basically the implementation of the principles of financial economics to the financial decision of an individual.

People normally face problems when they have no control on their spending, and they end up with a debt. One very important thing to gain balance in your personal finances is to be debt free.

Sometimes, when unexpected medical bills, job loss or high interest rates cause debt disarray, you feel as if your life is spinning out of control. You start thinking about your finances day and night. As a result, you become over-stressed and irritable towards your family, friends and co-workers. Becoming rude on phone calls from the bill collectors can make you leery of answering the phone. Regaining financial freedom can sound like heavenly music to your ears.

You can be free from debt, and all of the negativity that comes with it through some unexpected expenses, by practicing few simple activities.

If you wish to regain control over your finances, you should know how to prepare a personal budget. This is the most important point; unfortunately most of us do not consider a budget to be that much important, and we tend to live pay check to pay back, always wondering where the money went while waiting for that next payday.

As a start, all you need to get started with is a piece of paper or a notebook and a pen. On one side, write down your sources of income for the month and add all of them, while on the other side, you should start creating the list of your expenses. You need to be more involved while listing your expenses, although it is not a rocket science; it is just a matter of gathering all the necessary information. Plus, divide your expenses up into relevant categories, and these categories can be subdivided to further help you get control over your expenditures. Expenditures can include housing utilities, entertainment, health, payments etc.

Once you have created your monthly income and expenses list, you can immediately see that you are spending more then you are making. If this is the matter, you can use your newly created budget to start cutting out those expenses that are not really necessary. This is true that there are many areas where we overspend in daily life, and seeing it written down can help start cutting out those unnecessary expenses.

Debt Management Will Protect Your Personal Finances

Don’t let poor debt management skills sink your personal finances before you make it off the beach. Learning to manage debt can be the best way to stay afloat in a society that seems to be literally drowning in a sea of debt. Learn the steps you can take to insure that you do not become
another casualty of debt.

Step one. Consider debt consolidation services if they might assist you in making payments on time. There are several ways this can help. Multiple payments every month can get confusing, lost in the mail, or simply be forgotten in the mix. Late payments are costly and can damage your credit
rating. Consolidation creates one bill for all payments which insures that all debts are paid and your credit is protected.

Step two. Make a point of getting debt counseling before you are in over your head with debt. By never getting in too deep you will save yourself countless thousands of dollars (if not hundreds of thousands of dollars) in interest payments, late fees, and higher interests (due to poor credit ratings) during the course of your lifetime.

Counseling will not only help you manage the debt that you have now but also help you learn to identify and avoid the spending behavior that was leading you on the path to potential debt problems. Learning to identify the spending and debt creating patterns can help you prevent them.
Prevention is almost always the best possible debt solution.

Debt relief is not a myth but it is also not a magic cure. It takes work, consistent effort, and self control. The problem for many is that the options for relief are not always attractive. They include getting a second job or making lifestyle sacrifices in order to pay debt down.

Step four. Find creative and proactive methods for debt relief rather than relying on bankruptcy, which can destroy your credit. In the past, bankruptcy has been touted as a quick fix. This is not the case. Bankruptcy will follow you for years and make it nearly impossible to get a home, a
vehicle, or even to rent property.

The debt solution that works best for you may not be the same solution that works best for your neighbor. Your best bet is to create a plan for keeping your debt low, eliminating existing debt, and preventing future debt from getting out of control. You may need to adjust not only how you spend money but how you view spending money as well.

How to Succeed in Handling Your Personal Finances

A lot of consumers today are looking for information that they can use to responsibly manage their personal finances. If you belong to this set of consumers, then this article is made just for you. Below, we have discussed several tips that you can use to succeed in your quest to handle your financial resources in the best way you can.

Four Financial Management Tips

• Stick to a personal budget. It has been observed that sticking to a personal budget has helped many individuals to achieve their financial goals. After all, a personal budget can help curb overspending, which is perceived to be the main culprit that causes consumers to live beyond their means and thus fall into debt traps.

So, if you are serious about your desire to handle your personal finances in the most responsible way you can, then you need to come up with a realistic budget and stick to it. In so doing, you can allocate sufficient funds to important purchases and expenses, and at the same time, you can limit the amount of money that you spend each month.

• Establish a savings or emergency fund. Make sure that you set aside a percentage of your monthly income to your savings account or to your emergency fund. Not only will this activity help you prepare for your future endeavors, such as starting a family, buying your dream home or car, or starting your own enterprise. It can also provide you with ample funds that you can use both in times of medical emergencies and during economic recessions.

• Manage your lines of credit responsibly. If you are currently managing a line of credit, such as a credit card or a personal loan, then you need to resolve to handle it in the best way possible. This involves paying your credit charges on time and in full each month. You also need to abide by the terms and conditions of your credit account, at all times. This way, you can avoid paying steep fines and penalties that are usually imposed on cardholders and borrowers who committed serious violations against their respective credit agreements with card issuers and lenders.

• Make sure that you pay your dues on time. Aside from paying your credit installments prudently and completely, you also need to settle your other financial obligations, such as your rent, utilities and phone bills, and of course your annual income tax, on time. This is important for you to establish goodwill with your landlord, utilities and phone service providers as well as with the IRS, or Internal Revenue Service.

However, if you find it difficult to remember when your payments are due, then we suggest that you sign up for automatic payment arrangements with your bank. In this arrangement, you will authorize personnel of your bank to withdraw funds from your savings or checking account and to use such funds to settle your credit charges as well as your monthly bills. This way, you can have an assurance that your monthly payments are taken care of, and you won’t have to worry about being delinquent on your financial obligations ever again.

Benefits of Being on Top of Your Personal Finances

Being good with your personal finances is about getting into good habits and understanding the choices you can make. As we all get a bit older it is important that we grow in confidence to understand and plot where our money goes, to know our limits, and to choose the personal finance packages readily available for a wealthier future.

Sorting out your money by clearing your debt and building up your savings and investments makes you master of your financial future. It can also present several key benefits.

You stop paying expensive fees and charges for being in debt. Debt is pricey, with high rates of interest and often extra fees and charges. If you are in a lot of debt and pay a significant amount of interest on it, you may find that you simply can’t clear what you owe as all your money goes towards servicing the debt and paying the interest. Clearing your debt removes the debt itself and the cost of financing it.

You get rid of your guilt. Being in debt can be a worry, particularly if it has got out of hand and you can’t see any way of escaping the situation. Some people also regard being in debt as a stigma – something to be ashamed of and hidden from friends, family, and colleagues. Any way you look at it, debt is a burden and getting rid of it can be a huge weight off your shoulders.

You feel more confident about the future. With the state providing little financial support in retirement, you may be concerned about how you are going to make ends meet. But if you have savings and investments spread across a range of funds, pensions, and property, you can rest easy with regard to the future. You may even be able to look forward to giving up work, rather than dread it.

You open up a range of financial options. If your personal finances are in order, you can afford to take time off to travel or try a new career. But if you have lots of debt or little in the way of savings, you may not have the option to do what you like. This can make you feel rather resentful.

Drawing Up a Personal Finance Budget

The only way to manage your personal finances is to draw up a budget that you can stick to.

People who get into debt generally do so because they live beyond their means – spending more than they earn. Drawing up a personal finance budget and sticking to it can help assure that this doesn’t happen to you. If you’re in debt already, following a budget can help you to get out of that situation and develop habits that help you stay out.

If the figures don’t add up, and you find that you spend more than you’ve got coming in, all is not lost. Look for ways to economise in certain areas, though be sure you’re realistic about what you can achieve.

Don’t fool yourself into thinking that you will be happy to stay in every single night if you are usually a party animal. It simply won’t be possible. While you might not be able to stay in every night, it may be realistic to say you are going to stay in one night a week when you would normally go out. This won’t have the same dramatic results as staying in all the time but it will save you money in the long term and you are more likely to stick to this.