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Monday, 29 April 2013

What You Should Know About Personal Finances

By Priscilla Giles


Personal finance is a lot less about dollars and cents than you may think. Being financially secure also takes some common sense. You have to learn to manage your personal finances, and a lot of the time people find out the hard way. If you follow the advice in this article, you will find new ways to make changes to your financial future so that you can live with less stress.

Discuss your financial situation with your close friends and family members. If they're aware you're having money problems, you won't need to worry about them inviting you out for events you can't afford. By being honest, your friends will not think you are mad at them when you cannot go to dinner. Clue your friends in as to your financial situation - this way they will be better able to understand what you are going through.

Almost everyone makes mistakes with their finances. If you bounce a check once, you may be able to request that the fee is waived by your bank. This is usually a one-time courtesy that banks extend to good customers.

Having a written budget is important in achieving success in your personal finances. Your personal budget should contain a written list of all of your monthly bills and expected expenses. It is important that all expenses are included in your budget. You need to take into consideration the cost for your car, electricity food and rent. Make sure your list is thorough and contains all possible expenses. It is important to stay within budget and not to overspend.

If you want to start improving your finances stop paying full price for things. It is not prudent to restrict your purchases to certain brands unless those brands are truly better. When you do buy brand name items, look for manufacturers' coupons and use them! Don't buy your favorite brand name detergent if you can save using another brand's coupon.

Consider getting a savings account to put money aside every month. This way you might not have to apply for a loan when you need money, and also you will be able to face most unforeseen events. No matter how small your monthly contribution is, it adds up and is worth the effort.

A home and a car are probably going to be the largest purchases you have to make. Payments and interest rates are what will be a huge part of your expense each month. Repay them faster by making an additional payment every year or applying tax refunds to the balances.

Overdraft protection is a valuable tool to have if you are always on the brink of a zero balance. The nominal monthly fee is considerably less than the high charge that often accompanies an overdraft on your account.

Track how much you spend each month and then figure out a budget based on your records. Examine your budget to find areas that are costing more than they should. Not tracking your money and where you spend it is one of the main reasons people end up in debt and with no savings. Consider using some sort of finance software as it makes the process easier and more enjoyable. If there is any money leftover after paying bills, pay off some debt of sock it away into a savings account.

Watch out for heavy investors' fees. Long term investing brokers charge fees for their services. Your total return can be affected by the fees they will charge you. Keep your investing costs down by staying away from funds with pricey management fees and brokers that take large percentages in commissions.

Allowing your profits to run is a vital strategy for success in the Forex market. However, using this technique shouldn't be overused. Once you've made profit, you need to know when it's best to remove the money.

It is a good idea to apply your tax refund toward paying down your debts. A lot of people go and waste their money when they get their refunds instead of being responsible and paying off their debts. This does nothing to eliminate debt.

Make sure you always have a small envelope handy. You can store receipts, business cards, and other important items in it. Keeping up with these items can help you to maintain more accurate financial records. This way, you can compare your receipts to your monthly credit card statement, to ensure that all the charges are correct.

Now that you know the basics of personal finance, it's up to you to put it into practice so that you don't spend your money frivolously. Put away some money and you will make money in the long run.




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