The state of the economy is forcing many families to take a long, hard, look at their wallets. Focusing on spending and saving may feel frustrating, but taking good care of your personal finances will only benefit you in the long run. Here are some great personal finance tips to help get you started.
Like dieting, budgeting can be very painful if you are unreasonable in your goals. Severely restricting yourself will invariably lead to failure. Instead, set realistic goals for saving and spending your money. Setting extreme limits for yourself will make it much easier and tempting for you to fall off the wagon.
When going through bankruptcy, don’t let creditors harass you. When you file for bankruptcy, an “automatic stay” goes into effect. This means that creditors can take no action on outstanding debts, including calling your and filing lawsuits. Part of the bankruptcy process is a meeting of creditors, where creditors will have their chance to get as much money from you as your assets allow.
Because your home insurance more likely than not covers your belongings, documenting your major assets is an important part of getting the most from your insurance payments. Simply taking your camera around the house, photographing your most valuable items, and then saving that information in a zip file is an easy way to ensure that you get the most from your insurance plan should tragedy strike. Obviously it is far harder to prove what you owned after it is gone.
Have more than one bank account. You have many things that you need your money for, including your daily expenses, long term savings and any investments. You should have a different bank account for each purpose. This creates order in your financial life and it makes it easier to get an idea of how your finances are doing overall.
Cut out that unused land line. If you don’t talk on the phone much, a prepaid cell phone could be significantly cheaper in the long run. T-Mobile offers 1000 minutes of prepaid time for $100. This can last some people a year. For comparison, most landlines would cost $300 or more for that same year of service.
Take a second look at dealer financing with a very low APR. While it may seem like a good idea to save on interest charges, the term of these loans is often a very short 36 months. This means the payment will be very high. If you lose your job or encounter financial difficulties, this increases the chance that the car will be repossessed.
Having a strong grasp on your personal financial situation is key to long term success. As we have discussed in this article, getting your finances under control requires budgeting. Budgeting can feel like a it puts a cramp in your lifestyle, but it doesn’t have to feel this way. Follow the simple tips we have discussed in this article and you will be on your way to budgeting success.
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