Effective personal finance management is something that can be made easier with the right advice to complement your lifestyle. Who wouldn’t want to be able to know how to manage their finances well?
Here are some sound advicesyou should consider to help you manage your finances:
1) Use a personal planner. Although this is intended to help you plan out your activities and manage your schedule, it is a good idea to incorporate your finances into it. Whenever you pay for utility bills or any other payables, make a note of it in your planner for future reference. This is a good practice in case you notice some inconsistencies in your payment record in the future and want to make a claim.
2) Open up a bank account. Open up a savings deposit account with a reliable bank. If possible open a passbook account. This is better since the time you can withdraw money from the bank is limited, thus limiting unplanned expenses just in case.
3) Stay away from your credit card. Avoid it like the plague. I have always thought using the credit card should only be during urgent cases when you really need the money.For example, during times of disaster or sickness. If otherwise, use cash instead to avoid the interest that comes with using the credit card.
4) Set aside part of your salary. Setting aside even just 5% of your monthly salary can help you start your savings. The money saved will increase with each passing month. Do not use the money unless it is really an emergency.
5) Avail of discounts and promos. When going out to buy stuff you need, look out for the current promos and discounts offered at the shop you are going to. See if there is anything on promo that you can sensibly substitute with the item on your grocery list. This will not only save you some cash from your grocery budget, but will make room for additional items in the cart.
6) Evaluate your monthly expenses. See if there is anything you can go without or somewhere you can trim down to cut the monthly expense. This may be hard to do for some, but with the proper guidance and support, everything can be adjusted.
7) Plan your retirement early. Most of us dream of retiring early from work and having the time of our lives after. Yet, it is a reality still that not everyone retires comfortably. Avoiding this is easier with earlier planning. Look for affordable pension plans that mature by the time you reach the retiring age.
8) Stick to your budget. Avoid rationalizing expenses that were not included in the budget. For what was the reason you made a budget in the first place anyway? Stop rationalizing and just think of the money you can save if you stick to your budget.
Managing your expenses is a sure way to ensure you reach your financial goals. Once you reach this goal, then, you can say that you indeed managed your personal finance well.
Irina Carter writes for Swiftmoney Short Term Loans website. She contributes towards personal finance, frugal living, taxes, loans and finance news.