To some, the idea of having healthy personal finances seems impossible, or at least highly improbable. But the truth is, there is no reason why you cannot keep your personal financial issues in check to start putting money away each month. By applying the personal finance advice below, you truly can take control of your personal finances.
1. Do not spend without knowing your limits! — If you spend with no regard to your income, you will not last long at all. It is imperative that you are always aware of your spending limits. Ask yourself the following questions
How much is my take home pay, per pay period
How much money do I need to spend in order to survive
How much is left, after I pay for the things I need
Do I have enough to save after I pay for my necessary expenses
There are many tools on the internet which allow you to keep track of your savings targets, and analyzes your ability to meet those targets while keeping track of your progress.
2. Do not spend without savings targets! — Spending only to the limits of your income as described above is okay, but it will not actually allow you to put much money away in case of a financial emergency. If an appliance breaks, a pipe bursts or the car decides not to start, you may end up with a financial emergency that you simply are not equipped to handle. If one of these situations occurs, how will you possible survive Luckily, saving is fairly easy and it is something that you can begin today!
Here are some personal finance tips
If you bring lunch to work instead of buying it, for instance, you can save up to $1000 every year.
If you drink two less Starbucks lattes per week, you will save $520 per year at $10 per week.
You should set a target of around 10-percent of your take home pay for every pay period as a good start. All it takes is a little bit of creativity to find ways of achieving this.
3. Do not spend without first knowing how to save! — There are many ways for you to learn how to save money, while still allowing you enough freedom o spend money when you find something that you want.
Here are some suggestions worth considering
Never make an impulse purchase. Do you really need to buy it Ask yourself a couple of times. If you cannot answer with a resounding Yes I do!, then no, you really don’t.
Never purchase something simply because it is on sale. You should only make purchases that you absolutely need. Sale items will always go on sale again later, perhaps when you do need them.
Do not buy into the latest trends at the very height at the season. Instead, wait a small while until the price has been reduced.
Set a savings target for yourself, and put this money away before you spend any money out of your pay check. (By Joseph Then)
Tags: course introduction, finance short course, financial emergency, necessary expenses, pay per pay, personal finance advice, personal finance tips, personal financial issues, starbucks, target