A lot of people make financial mistakes by spending money without thinking. You are able to get in trouble by simply living for today only. Of course, nobody is perfect and it’s no fun being a tightwad. But personal financial management will help you stay away from big mistakes that hold you back from where you really want to be.
Spending budget used to stop mistakes with personal finance
Having no budget is the biggest mistake. You will lose all your money if you don’t budget where you need it to go. But a budget just is not a plan for how you would like to spend your money. Bankrate.com reports that to create a spending budget you’ve to start tracking your expenses first. Tracking your spending for a month takes discipline, but once you know where your money is going, you can start making better decisions about where to allocate your funds. But don’t be too conservative. It can be more difficult to keep a spending budget that has spending cut out of it.
A spending budget helps you start saving money
A budget that you keep can help you conserve money. You could be very wrong if it appears like you can’t spare any money to savings. Ehow.com recommends beginning small. You might be interested to see how $20 a paycheck can build up your savings. Dollars can be added with nickels and dimes. Pack a lunch and water bottle for work or make your own coffee. Taking an extra job like coaching or tutoring could be your spending money when you conserve money from your regular check.
Late payments to be avoided
It costs you a lot of money to make late payments. Some tips on avoiding late payments are given on the About.com website. Late payments can be avoided easiest with a simple automatic payment with your bank account. You need to open and pay all your bills if you aren’t as confident as part of your cash flow. Write on the calendar your own due date before the bill is due. You can get free e-mail or cell phone reminders from many of the creditors. You can talk to the companies about changing the due date to arrange with whenever you get your paycheck.
Use cash advances wisely
Debt shouldn’t be used for living expenses. A pay day or online cash advance is a valuable service for emergencies like medical bills, car repairs and traffic tickets. But to finance lattes from Starbucks, the dress on sale you can’t live without or beers with the fellas after work, using personal loan and installment loans is a bad idea. When it is a good idea to get a pay day loans, only borrow exactly what you have to resolve the emergency — and by all means make certain you repay it on time.
Further reading
Bankrate.com
bankrate.com/finance/financial-literacy/secrets-to-creating-a-budget-1.aspx
Ehow.com
ehow.com/how_2205105_start-saving-money-have-none.html
About.com
personalorganizing.about.com/od/howtoorganizefinances/ht/bills_finances.htm
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