Do you know the best ways to balance your personal finances, and use your income to its best advantage? It is often easy to live outside an individual’s means and fall prey to the paycheck-to-paycheck syndrome. You don’t have to suffer through this anymore, if you make some changes, like the tips presented here, and keep balance in mind.
Save money by packing your lunch for work instead of going out to a restaurant. You can easily spend $10 to $15 per meal every time you go out for lunch. That can add up to a significant amount of money every month. If you pack your lunch, you would be surprised at how quickly you can save up for that big expense item.
You can save a good amount of money if you remain patient. Many people buy the latest and greatest electronics as soon as they come out. But, after a short period of time, the honeymoon is over on these goods and the prices fall drastically as the retailers try to shift their stock. It goes without saying that the extra money saved on these purchases can be more wisely applied elsewhere.
Don’t throw out all of your old tissue boxes – turn them into something useful again. For example, you can keep your old tissue boxes and keep your grocery bags inside. The box makes a useful dispenser, while keeping your grocery bag clutter at bay. Place your grocery bag filled tissue box under the kitchen sink for ease of use.
If you have extra money, put it in an online savings account. These accounts can earn you a lot of interest, which can add up to a lot of money over time. Use an online savings account if you want to make your money work for you to achieve your monetary goals.
Take taxi fees into consideration, when financially preparing for your trip. Most people are too preoccupied thinking about hotel, food and leisure expenses, to remember that they need money for taxis. When making a taxi or car reservation, ask how much the ride will be on the phone, so that you know how much to set aside.
If you work a full time job, make sure that you are setting money aside each pay period towards your retirement fund. This will be extremely important later on in life after you have put in your last hours of work. Ascertain that money is being wired into your 401k, each paycheck for a stable future.
Make sure you have some emergency savings squirreled away. If you don’t and a major expense pops up like car repairs or medical bills, all these bills could end up on your credit card. This can put you even further in debt. It’s better to have a few months money built up to cushion these emergencies.
If you haven’t opened an FSA yet, do so now. You’ll save money by not having to pay taxes on this amount.
Look for a free checking account, as there is no need to waste money unnecessarily. Get something that has no minimum balance requirement, no transaction fees and no monthly fees. The majority of banks still offer free, no interest checking accounts. Others have checking accounts that can be free if you sign up for direct deposit.
Choose your credit cards wisely. If you need to use them for everyday purchases, find the ones advertising rewards. There are lots of banks offering 1-5% cash back, airline frequent flyer miles or discounts when you buy certain products. Choose the card that matches your lifestyle and reduces your costs.
There is currently a debate waging over whether you should save all your money or invest it instead. If in doubt, split up your efforts. Saving 70% and investing 30% is a smart move. You can make it an even smarter move by thoroughly vetting the place in which you will be investing your capital.
Avoid any type of secured loan that includes a balloon payment at the end of the loan term. This type of arrangement is especially common with auto loans. This will, of course, lower the monthly payment; however, if you don’t have the money to make the balloon payment, you will lose all of your equity in the collateral.
If you have multiple credit cards for different retailers, place them in a zippered sandwich bag filled with water, then freeze the bag in your freezer. This helps you to resist temptation by creating a number of obstacles to an otherwise impulsive spending spree. Not only will you have to wait for the ice to thaw, but you might also end up making a mess – an excellent deterrent.
If you must move in with a family member to reduce expenses and save money. Make the best of the situation and save, save, save. It may be tempting to blow your paychecks on nights out or other frivolous things, but you could be saving for a few months’ rent, a car, and other things that can get you back out on your own.
Refer to the Federal Housing Administration’s guidelines before your borrow. These guidelines will help you determine what your borrowing limit is. Your limit will depend on how much money you earn. Follow the FHA’s advice and you should be able to avoid taking on a loan that will drive you to excessive debt.
Avoid using your credit card as much as you can. It’s very easy to end up spending more than you should when you use a credit card. If you only use cash or a debit card, you won’t have to worry about spending more money than you have, and ending up in debt.
Your paycheck doesn’t have to be something you wait for each week. This article has laid out some good advice for handling your finances, provided you take the right steps and follow through. Don’t let your life revolve around payday, when there are so many other days you could be enjoying.
