Maybe money can't buy happiness, but it can certainly prevent debt-related stress and anxiety. It allows us to sleep more soundly and relieves some of the pressure from our daily existence. A premier cause of depression is financial disarray. In a way, money can buy happiness and to find out how to shape up your personal finances, read this article.
If you are materially successful in life, eventually you will get to the point where you have more assets that you did in the past. Unless you are continually looking at your insurance policies and adjusting liability, you may find yourself underinsured and at risk of losing more than you should if a liability claim is made. To protect against this, consider purchasing an umbrella policy, which, as the name implies, provides gradually expanding coverage over time so that you do not run the risk of being under-covered in the event of a liability claim.
If you don't already have one, open an IRA. You can contribute catch-up funds anytime throughout the year to get your maximum interest. This is also tax deductible. So, if you need to find a few more ways to raise those deduction amounts, it's better to pay yourself, than uncle Sam.
Get a credit card that rewards you with frequent flyer miles. This is a great tip only if you are diligent about paying off your card balance monthly. These cards usually give you a big bonus miles bump on your first purchase, plus miles for every dollar you put on the card. You could be earning free flights very quickly.
Each time you receive a check, the first thing you should do is put some of it in savings. It's too easy to spend now, and forget to save later. Knowing how much money is already used makes budgeting easier. There will be less temptation to spend it and more encouragement to save it.
Doing odd jobs for ones friends and family can often be a convenient way for way to add additional money to their personal finances. Also one can often build a reputation for themselves creating a business that will keep supplying one with a job whenever their previous customers have new projects.
If your finances are such that you can't afford to put a sizeable down payment on a new car, you can't afford that car. Cars depreciate extremely quickly, and unless you make a large payment up-front, you will end up upside-down on that loan. Owing more than the worth of your car makes it difficult to sell the car and can put you in a bad position if the car were to be wrecked.
Quite often it is said that if you make more you spend more. The biggest tip I can offer in that case is to try to live below your means. If you can afford that luxury $1000 apartment, don't! Live at a more modest $700 dollar one and pocket the difference perhaps to use as a down payment on a house.
Giving children an allowance is a great way to introduce them to personal finance and teach them how to manage money. When they are given age-appropriate chores and paid for a job well done, not only are they motivated to continue doing good work, they are learning about responsibility and the value of a dollar.
Timing is very important when buying a mortgage. You don't want to end up having to pay for two mortgages for a long period of time. If you are buying and selling at the same time, remember to focus on the selling first, that is the most important thing that needs to get done before you can buy a new house.
Save a little money where you can. Look for substitute goods. For example, this week at my grocery store, I could have bought a pound of beef for stew, precut into neat little cubes from the scrap trimmed off of beef round, for 3.50. On the other hand, I could have chopped it myself from the beef round roast for $2.50.
Sitting down with a financial planner can be a great tool for personal finance. Sometimes budgeting can be overwhelming. They can help you lay out your goals, figure out your expenses and start a savings plan. Make sure you are up front about your finances so that you can get the most from the experience.
If you (or your spouse) has earned any type of income, you are eligible to be contributing to an IRA (Individual Retirement Account), and you need to be doing this right now. This is a great way to supplement any type of retirement plan that has limits in terms of investing.
If you find out your bank is going to be charging new fees, do not walk away immediately. Instead, speak with your banker and see if you can negotiate with them. Obviously, they do not want to lose your business. Plus, taking your money to another bank will just end up costing you a fortune.
Checkbook management, taxes, budgeting, and stock market investing are all equally important in your personal finance portfolio. Taking care of your personal finances isn't difficult, but it does require discipline and a little education. Now that you you know the best ways to manage your money, you can put your money to work for you, turning it into a fungible resource.