Surprising personal finance strategy tips
Do you want to take control of your finances, save money for your goals, and find hidden ways to cut costs? You already know you should save money for emergencies, fund your 401k, and pay off your debts. But what else can you do?
Read on to learn seven tips to follow when creating your personal finance strategy.
1. Schedule Time for Your Personal Finance Strategy
Just as you create a financial budget to save money, you should budget your time and schedule a time slot to check your finances. During this time you can plan savings goals, look for errors in bank statements and recent bills, and consider other ways to save money.
2. Cut Monthly Services
Whether you're overpaying on your utility bills or paying for services you don't use, you may be spending far more than you intend. Next time you get your credit card statement, look for services you can do without, such as streaming entertainment costs. You may also be able to lower charges such as for gym memberships.
Don't forget to check your regular monthly bills. Look for ways you can lower costs, such as using less electricity. If there are mysterious fees you don't understand, call and ask about them.
3. Shop Around
People who compare prices often stumble onto big savings. For instance, the price of auto insurance can vary by thousands of dollars per company. See whether you can switch plans to lower the cost of internet, cable, cell phone coverage, insurance, interest rates, or any other services.
4. Avoid Bank Fees
Banks make a bulk of their profits by charging a wide array of fees. A single customer might pay $5 per month for account maintenance, $3 per ATM transaction, and $3 per paper statement.
When choosing a bank, shop around and compare the fees. You should also look at online banks or credit unions, which often offer free checking.
5. Use Separate Savings Accounts for Different Goals
Using several bank accounts can help you put money aside for specific goals. If you transfer money into separate accounts, you'll be less tempted to spend it. Use this system to save for yearly expenses such as auto insurance, or for extras like travel.
6. Build Good Credit
Your credit score affects bank loans, credit card worthiness, and interest rates. Check your credit yearly with the three major companies: Equifax, Experian, and TransUnion. To build good credit, pay your credit card bills on time, avoid applying for new cards if possible, and use your old cards periodically even if you've gotten new cards.
7. Consider Payday Loans for Emergency Situations
When you need cash immediately for an emergency situation such as car repair, consider a payday loan if you know you can cover the loan with your next paycheck. If you do have to get started on taking out a payday loan, make sure you understand all the finance fees and costs.
Get Started
If you plan your personal finance strategy now, your choices will soon pay off. Taking control of your finances will give you the freedom to get out of debt and meet your savings goals. You'll end up happier--and wealthier!
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