Personal finance can be easy to manage with the use of tools, such as excel or other personal banking software. The best practice is to make sure that you pay your monthly bills at the beginning of the month. This assures that you will not forget a bill and end up with late payment fees. Managing your personal finances by utilizing a tool to keep track of what has been paid and how much yo have spent, also allows you to refer back and see past years’ finances and compare how you are doing today, compared to the past.
Never use a credit card for cash advances. The interest rate on a cash advance can be almost double the interest rate on a purchase. The interest on cash advances is also calculated from the moment you withdrawal the cash, so you will still be charged some interest even if you pay off your credit card in full at the end of the 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.
Avoid buying new gadgets as soon as they come out. As we have all seen recently with some of the hottest new products, the price tends to come down within the first 6 months of release. Don’t jump on the train to buy your new toy at release, and you’ll save yourself a bundle.
Eating out is a huge pit of money loss. It is way too easy to get into the habit of eating out all the time, but it is doing a number on your pocket book. Test it out by making all of your meals at home for a month, and see how much extra money you have left over.
To teach your child personal finance, take them with you to the grocery store. Many children take the food they eat every day for granted. If they see how much simple items cost at the store, they are more likely to appreciate not only the food on their table, but also how much you have to work for money.
One of the things that you need to take into consideration with the rising rates of gasoline is miles per gallon. When you are shopping for a car, look into the car’s MPG, which can make a huge difference over the life of your purchase in how much you spend on gas.
To be sure you are on top of things, you should use a tool to keep track of what has been paid and what is still outstanding. Make sure that you either, choose a point in time to manage this or refer to it frequently, in order to verify that you have not left out any important bills that require payment during that time period.