Tips for Building a Personal Finance Strategy

by Justin Weinger on July 15, 2012

Finances can be unpleasant for many people in their lives. Sometimes, it seems as if your money flies out of your wallet to pay for extra expenses. In spite of this, you can learn ways to more effectively deal with your money. Doing this will help you to save money instead of wasting it away!

Although you may need to exert more effort, trying only using ATMs that your bank approves. Many banks charge fees if you use the ATM of another bank. They will charge you every month for using other ATMs.

Take advantage of tax planning, in order to improve your personal finances. Many retirement plans act as tax shelters. Talk to your employer about contributing some of your pretax income to these plans. Make sure you set aside this money for your medical bills. Also make sure to participate in any 401K matching plans that your employer may offer. This will help you to make your money work for you, and an effort to maintaining a solid financial position.

Have your credit cards paid directly through your checking account each month. Making this arrangement avoids you forgetting to ever do so.  Also, avoid paying on high interest cards that never seem to get paid down.  A possibility may be to take out an instant loan in order to consolidate your debts.

Try buying the generic brand of food. Store brands are often remarkably similar to their name-brand counterparts, but cost less money. Compare the ingredients of your favorite brand with the ingredients of the off brand products to see how similar they actually are. These foods can save you money, so you shouldn’t avoid trying them.

A good way to improve your finances is making an effort to pay monthly bills early each month. When you pay all of your bills on time, you are starting to manage your finances properly and know how much you can spend when you go out. It also helps you be able to take care of unexpected expenses as they come up.

While you may not be happy in your current job, it’s better to have an income than none at all. Quitting your job without having another lined up can hurt you financially.

It is best to carry some cash or a debit card with you for small purchases. Do not rely on just your credit card. These days, it’s common for credit cards to set minimum purchase levels, and keeping a debit card and cash on hand can keep you from getting stuck.

Compounding interest is something that all young people should be aware of, especially if they are trying to stay on top of their finances. Always save a percentage of every dollar that you earn.

Go over your bank statements carefully. This allows you to determine whether or not you have incurred additional charges or are subject to rate changes. Many folks don’t review bank statements and end up paying more in fees than necessary. This is why you should always go over your bank statements and pay attention to details.

Make a budget by tracking your expenses every month so you can know how much money you are spending. Look for areas in your budget where you are spending too much. Unless you do so, you can end up with no money at the end of the week, regardless of how high your income goes. Try using finance or budget software to help you with this. If you have money left over, use it to pay down debt, or deposit it into a high-yield savings account.

After reading this article, you should understand better how to save, despite the miscellaneous and unexpected expenses that often come up. You shouldn’t worry if you don’t immediately see improvements in your financial situation. Similar to dieting, it will not change all in one day. Just stay with your plan and things will change eventually.

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