America seems to have a high ignorance when it comes to personal finance. Consider this article a primer in basic finance and budgeting to ensure you remain financially solvent in your retirement years. You will be educated on ways you can get the most bang for your buck, as well as providing information on making more money.
For a better understanding of where your hard earned money is going, keep a journal of your daily purchases. A notebook that is easily set aside or lost is probably not the best method, as it is often soon forgotten. Try listing how much you spend on a whiteboard set up in your office or den. You will glance at it often so that you can keep the message fresh in your mind.
Arrange an automatic withdrawal from checking to savings each month. This can be a great way to ensure that you save consistently without having to maintain rigorous self-discipline. This technique can also be helpful for accruing money for expensive events, such as a wedding.
Look at the fees before you invest your money. Brokers do collect a fee for their services, of course. These fees can take a big bite of your returns, though, if they are large. Avoid using brokers who charge large commissions and steer clear of high-cost management funds.
If you find that your credit card balance is creeping up and you are having trouble keeping up with the payments, it’s a good idea to stop making charges. Cut your spending and do everything you can to avoid maxing out any of your credit cards. Pay down your balance completely before you consider using the card in the future.
Replace older incandescent bulbs with high-efficiency CFL bulbs. Changing to more efficient light bulbs will decrease your electric bill and help the environment. CFL bulbs have the added benefit of lasting a much longer time than traditional bulbs. You’ll buy fewer bulbs, and that means spending less money.
Patience can save you a lot of money when considering your personal finances. It is very common for many people to go out and buy the latest electronics immediately. If they would just be patient and wait a bit, those prices will go down by up to 50%. It goes without saying that the extra money saved on these purchases can be more wisely applied elsewhere.
Every time you get a check, save some money from it immediately. Planning to save whatever is left after the month is over is not a good idea. Once the money is put in a separate account, it reduces the temptation to spend, since you’ve compartmentalized it in a way that makes it psychologically “less available.”
Armed with this knowledge, you can now make wise decisions regarding money and avoid unnecessary expenses. Save what you can, and save it in a way that will make you more money than a traditional savings account.