Updated: Dec 29, 2020
If you're like everyone else in the world - You probably have concerns or questions about your personal finances, and aren't sure where to begin to get them in order. Whether you are dealing with a minor problem or a major issue, this article can help give you the answers and advice you need to keep your personal finances in order.
1. Balance your income
First and foremost the best place to start is to learn how to balance your income and you're spending. Long gone are the days of having to balance a checkbook; But keeping track of how much money you earn and spend on a daily basis is of utter importance. There are useful apps that can ease the pain of accomplishing this task. Go over these figures at least once a month to make sure you are living within your means - What you spend each month should never surpass the money you make each month.
2. Save money on insurance premiums
Try saving money on the different insurance policies you have in place. Insurance is a risk management tool that allows you to transfer risk of personal loss over to the company you are paying a monthly premium in exchange for compensation. You should be insured for anything that is likely to happen and should check regularly for ways to reduce your premiums. Shop around, find out if you are eligible for discounts that will help reduce your premiums and review your policies regularly to make sure they are suited for your current needs.
5 Types of Insurance you should have: Life, Health, Auto, Disability, Homeowner/Renters
3. Take advantage of sales
Buy items that you need or use regularly when they are on sale. Be careful not to purchase items you do not plan on using, as this will hurt your personal finances. By watching the prices of items you need or want, and purchasing them when the price is reduced, you end up saving yourself more money in the long run.
4. Utilize low introductory APR credit cards
Credit Cards plays a significant role in the realm of personal finance, so it’s paramount to always take advantage of the best balance transfer credit card offers available when your trying to lower your debt - This allows each payment to go towards the principle, which will aid in your ability to pay your debt down faster because you won’t be paying any interest. By shifting higher interest debt onto a credit card offering a lower Annual Percentage Rate (APR), you can procure significant savings and establish a very positive relationship with the issuing bank.
Balance Transfer Credit Card - Chase Freedom Unlimited
5. Drink free water
Water seems like an insignificant expense when you're purchasing it because you're focused on the perceived benefit, but it will add up over time. Instead of purchasing bottled water I encourage you to invest in water filters. This will allow you to create water at home that will have the same taste as bottled water, at little to no cost; and as a bonus you’ll be saving our planet from plastic.
6. Use less expensive products
You should look for ways to save money on your beauty routine. Many of the different types of natural, organic, and paraben-free makeup and lotions can be very expensive, and are not worth the money if you are in a part of your life where your personal finances aren’t in order. Instead, look for cheaper products sold at discount stores, or products on sale that has less chemicals in them, and consider which products you can remove all together. This can save you a lot of money each year.
What It All Boils Down To
By informing yourself on the basics of personal finance, You give yourself the opportunity to become more financially dependent without needing to have your hand held by a financial advisor, thus saving money on advisor fees. Money can be saved in many different aspects of your life. It’s a matter of paying attention to your individual spending habits, being frugal and shaving costs in areas of less importance. If you remember what you've learned from this article and make use of the tips and advice it contains, you'll be able to build or secure a strong foundation for your financial future.
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