A lot of people make financial mistakes by spending money without thinking. Living for today and forgetting about tomorrow can get you in trouble. Of course, nobody is perfect and it is no fun being a tightwad. But personal financial management will help you keep away from big mistakes that hold you back from where you really want to be.
Stop mistakes with finances using a budget
Avoid budgeting and you’ll be in for a surprise of what a mistake it is. You won’t have any money left if you spend without thinking. Where you spend your money isn’t all a budget is about. Bankrate.com reports that to create a budget you’ll have to keep track of where your money is going first. You’ll make better decisions about spending once you know where your money has been going. But do not be too conservative. Budgets that take money out of your life will fail.
Budgeting and saving
Creating a budget helps you start saving. Even if seems like like you can’t save with your budget, you may be wrong. Ehow.com recommends you start with a small amount. You may be interested to see how $20 a paycheck can build up your savings. Additional nickels and dimes add up to many dollars. 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 while you save money from your regular check.
Don’t make late payments
Late payments will cost you a lot of extra money. Tips are offered by About.com on avoiding late payments. The easiest way to stay away from late payments is to set up 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. Before the bill is due, you are able to have it put on the calendar that it needs to be paid. You are able to get free e-mail or cell phone reminders from many of the creditors. Many companies will even let you rearrange the due dates better suited to your cash flow.
Possible use of cash advances
Debt shouldn’t be used for living expenditures. A paydayloans or online payday loans 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 short term loans is a bad idea. With pay day loans, you should never borrow more money you need for an emergency, and should 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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