Personal finance is every part of your life that has to do with money. From how much you spend at the grocery store to buying a house. You will read some quick and easy tips on the best things that you should be doing with your money.
Cut down on impulse buying with the “one week rule”. If you want to buy something, make yourself wait a week before actually spending the money. Chances are, your spending will decrease because you probably will not even remember what you wanted to buy last week or the week before.
Take the advice of personal financial adviser Dave Ramsey and sock away $1,000 right away. Getting this $1000 socked away for emergencies should be your #1 priority. After you’ve done that, then you can work on debt reduction. Not only will the emergency money come in handy when a car repair or other unexpected expense happens, but you’ll sleep better too. But don’t keep that money in the bank. Ramsey says you should keep the money somewhere where access isn’t easy. One friend of ours bought a bag sealer and some small plastic bags and proceeded to seal 100 bags with $100 in them and stash them away. The trouble of finding and opening all those bags has kept him from using the money for things other than a true emergency.
Eating at home and boycotting restaurants is one of the best ways to save money. If you buy your groceries in bulk you can almost always cook at home cheaper than the equivalent meal would cost you in a restaurant. It might be nice to eat out ever once in awhile but think of all the money that is just going down the drain when you do.
To avoid throwing your money away, always pay in cash when you can and save your credit cards for real emergencies. It is all too easy to use credit cards all the time, but the interest on accumulating debt really adds up. In other words, when you buy things with your credit card when you do not have to, you are literally giving away your money.
Try to pay more than the minimum payments on your credit cards. When you only pay the minimum amount off your credit card each month it can end up taking years or even decades to clear the balance. Items that you bought using the credit card can also end up costing you over twice the purchase price.
While some of these tips may seem a bit complicated, deciding exactly what to do with your money may take some time and a lot of thought. Don’t rush into any decision when it comes to money. Always make sure to do your research so you do not lose everything you have been working for.