Many people are having a financial crisis in today’s hard times. You will find that even though you cannot always be rich, figuring out a comfortable way to live within your means is still possible. The information presented below is designed to help you get started with learning this important life skill.
Paying in full instead of getting into debt is the better option if you can manage it. Some debt is normal, such as education loans and mortgages, but try your best to avoid bad debt such as credit cards. Learning to live within your means insures a life free of high interest rates and massive debt.
If you are looking to improve your credit report, it is a good idea to have between two to four active credit cards. One card will not sufficiently build up your credit. Over four cards can drag your score down and be difficult to manage. You should start by getting two credit cards and applying for a third or fourth one as needed.
If the time doesn’t seem good, don’t sell. If you’re getting good money from a certain stock, leave it alone for a period of time. Look at the stocks which aren’t performing that good and see if you can put that money into something better.
Your car and house are likely to be the biggest purchases you will make. Interest rates and payments on these two items will most likely be the bigger part of your monthly budget. Pay them off quicker by adding an extra payment each year or using your tax refunds to pay down the balance.
Use compact florescent bulbs in place of incandescent bulbs where you can. By replacing your bulbs, you will pay less on your electricity bills and be less of a burden to the environment. CFL bulbs typically last longer than regular light bulbs. You will purchase fewer bulbs, so you will not spend as much money.
If you travel by air frequently, it can be worthwhile to sign up for a program that rewards frequent fliers. There are a number of credit cards that give free miles or a discount on air travel with purchases. It is also frequently possible to redeem frequent flier miles at many hotels where they may be good for a free room, or a discount on your booking.
Be aware of IRS income tax deadlines. If you want to get the money quickly, you’re going to want to file as soon as you can. If you are in a situation where you owe a great deal of money and are not going to be getting a tax refund, you can wait to file your taxes until April 15.
There are plenty of free checking accounts, go for that option. Search local credit unions, community banks, and online banks.
Credit Cards
It may be more beneficial for you to use credit cards than debit. If you can be approved for credit cards, use them for small daily purchases like food and gas. Most often, credit card companies provide rewards for the use of their cards so you may see cash back on these items.
Big lifetime purchases include buying a car and a home. A huge factor of your budget each month will be not only the payments, but the interest rates of these things. Making one extra payment yearly or applying your tax refund money will get these paid off faster.
You might not be rich, but that doesn’t mean you should accept a bad financial situation. Remember, a person doesn’t need to be a millionaire to be happy, he only needs the ability to live his life in a financially savvy way.