When we are careful in the way we spend our money, it enhances the likelihood that over time our personal wealth will grow rather than stagnate or even shrink. This is what personal finance is all about. By taking even the smallest steps to ensure we are spending our money wisely, we are taking steps to secure our future.
When you are saving for an emergency fund, aim for at least three to six months worth of living expenses. This is not a large amount, considering the difficulty in finding employment if you ever lose your job. In fact, the larger the emergency fund, the better position you would be in to ride out any unforeseen financial catastrophes.
Start building up an emergency fund today. In an ideal world you should have at least three months, preferable six months, living expenses stored away. Put it in an easy access, high interest savings account. If you don’t have any money saved, remember that it is never too late to start saving.
Talk to an investment representative or financial planner. Even though you may not be rolling in dough, or able to throw hundreds of dollars a month into an investment account, something is better than nothing. Seek their advice on the best options for your savings and retirement, and then start doing it today, even if it is only a few dollars a month.
Not only can you insure your own medical costs, but pet owners may want to investigate pet insurance. These policies can pay for or kick in to pay for vet services once you reach a deductible amount. Veterinary costs can be expensive, so it make sense to insure you pet, the same way you would a member of the family.
Never use your credit card for a cash advance. Just because your card offers it doesn’t mean you should use it. The interest rates on cash advances are extremely high and utilizing a cash advance will hurt your credit score. Just say no to the cash advance.
To improve your personal finance habits, project all of your expenses for the coming month when you make your budget. This will help you to make allowances for all of your expenses, as well as make adjustments in real-time. Once you have recorded everything as accurately as possible, you can prioritize your expenses.
A little maintenance, such as keeping the proper tire pressure or changing oil and other fluids at proper times, saves a lot of money by preventing damage. Tires and engines last longer and the mechanic may spot other problems while they are still small and relatively easy to repair. Your car runs better, gets better gas mileage and you save money.
Whether you keep track of your personal finances online or on paper, it is extremely important to review your general situation every month. Look for any unexpected changes in your bills, shortfalls in your credits, or irregularities in the dates that money changes hands. Noting these changes and accounting for them is a big part of staying on top of your financial situation.
Going to stores that are about to go out of business or be turned into a different store, can often produce items that can be bought at a greatly discounted price. Getting items you need or can resell at a higher price can both benefit your personal finances.
Personal finance is determined as much by the small decisions we make in life as by the larger ones. Many small purchases over time, after all, add up to the cost of one larger purchase. Whether the two totals equate to value is something that should be considered well before that first dollar is ever laid down in payment.
