Sometimes, it’s hard to figure out just where all your money goes. Little purchases can add up fast, and if you’re already in bad financial shape, they can take your situation from bad to worse. That’s why it’s important to develop good personal finance habits. Keep reading to learn money advice anyone can use.
When you need to borrow money, ensure your personal finance stays safe by never going over 30% of your income. When people borrow more than 30% of their income it can drastically reduce your credit score. So as long as you stay within these safe parameters you can enjoy having good credit.
Coupons might have been taboo in years past, but with so many people trying to save money and with budgets being tight, why would you pay more than you have to? Scan your local newspapers and magazines for coupons on restaurants, groceries and entertainment that you would be interested in.
Whenever you get a windfall such as a bonus or a tax return, designate at least half to paying down debts. You save the amount of interest you would have paid on that amount, which is charged at a much higher rate than any savings account pays. Some of the money will still be left for a small splurge, but the rest will make your financial life better for the future.
One of the tips that you can follow when you go to the store is to shop with a friend. Have them set a time limit as to how long you are going to stay in the store, which will reduce the chance of you spending money on items that you do not need.
Coffee is something that you should try to minimize in the morning as much as possible. Purchasing coffee at one of the most popular stores can set you back 5-10 dollars per day, depending on your purchasing frequency. Instead, drink a glass of water or munch on fruit to give you the energy you require.
If you are trying to repair your credit score, you have to be patient. Changes to your score will not happen the day after you pay off your credit card bill. It can take up to ten years before old debt is off of your credit history. Continue to pay your bills on time, and you will get there, though.
Lots of families have lost their primary source of income due to lay-offs or medical issues. In these cases you might be late with your rent payment or might not even be able to pay it. Find out from the landlord how much time you have to bring your account current, or if he allows you to live in the apartment for the period covered by the security deposit.
Radio talk show host Neal Boortz once advised when it comes to saving money that you should never spend a one dollar bill. You should put that dollar bill in a coffee can and never spend it, and every time you get one, put it in there. You would be surprised at how many one dollar bills you save by not getting this little item or that.
Never co-sign a loan for anyone!!! No matter how much you think you can trust them, if the debt is not something you are willing to pay off, just don’t do it. If you do, and they don’t pay, the debt will be your responsibility, and you will have to fork up the money.
Many people don’t learn good personal finance habits, and bear the consequences of their lack of knowledge later on. Now that you’ve read this article, you’ll be able to take control of your finances and get them in better shape. If you develop good finance habits now, they’ll last you for the rest of your life.