Personal finance management can sometimes seem like a daunting task. With the amount of financial responsibilities people have today, keeping track of anything can prove to be quite challenging. However, you don’t have to be a rocket scientist to be successful in personal finance management.
I’ve come up with a nice list of some tips anyone can use when managing your money. With some economists calling an official “recession” in the USA, it is a good idea to keep your finances in check!
1. Stay Organized
Organization can be helpful in all areas of life, especially personal finance. The most organized people will usually have the most success. Being organized in personal finances isn’t tremendously difficult either. Simply keeping track of bills, when things are due, and how much money you have can do wonders. There are also a variety of things one can do to help stay organized. Using calendars to write down when payments are due, or using any other sort of organizer can be quite helpful. Keep track of your bills, and file them with as much organization as possible.
2. Be Proactive
Sometimes the best way to be successful is to be proactive. Instead of waiting for the bills to pile up, have your checks already written. Anticipate how much certain costs may be and set money aside specifically for that. Just like with some sports, the best defense is a good offense. If you’re being proactive with your personal finance, you’ll be less likely to get caught with not enough money to pay a bill or a pesky late fee. If you’re carrying a credit card balance, do your best to pay more than you need to (it will help you to avoid some higher interest fees later). The same can be said for any loans you may be paying off. Paying more than what is required can really help and get rid of loans faster.
3. Don’t Fall Behind
If you’re not being proactive, then you best not be falling behind. Make sure to stay with your bills and keep track of your finances well. Falling behind is terrible because it usually leads to falling further behind. Once the bills start mounting, they don’t stop, which spells trouble for anyone. Do whatever you can to make sure you at least stay with the bills, on-pace, and on time. If you are organized and use some of the other tips here, you shouldn’t fall behind.
4. Seek Advice if Needed
Sometimes we all need a little friendly advice or help. If you are stuck on how to deal with a certain financial situation, never be afraid to ask a friend or family member for advice. If things are bad enough, you should also consider professional financial advice. However, I feel it’s always a good idea to only seek professional help if nothing else can be done and it is a last resort. If you are new to some things (such as buying a house, financing an education, etc) then you would be crazy to not seek some advice. You can learn a lot from people who have been through things before. Find out about other’s mistakes so you don’t repeat them. Remember, it’s not smart to forego seeking advice because of pride or laziness.
5. Be Prepared for Anything
Personal finance management can be organized and planned for, but sometimes, things just happen. You may get in a car accident, a breadwinner could be fired, a check could bounce, etc. Be prepared for anything. Some of the most successful people in personal finance management often have emergency funds. Create a special account for any emergency bills that might come up (you could also throw money under a mattress, or in a cookie jar, but it won’t earn interest that way). If you periodically put a part of your paycheck in that fund, you’ll find that it will grow rather quickly. It never, ever hurts to be over-cautious. You’ll be extremely thankful when you have a nice safety fund available when you really need it.
6. If Possible, Pay Bills Online
This is just my personal preference, and of course you can stick with checks if you prefer. However, I find that paying bills online is faster, easier, and helps me stay more organized. Rather than trying to mail checks and anticipate when they will arrive, you can often pay bills the very same day. I find that paying bills online helps me avoid pesky late fees that can really add up. Of course, you still have to be slightly proactive, even with online statements and such, because there’s nothing worse than the Internet crashing when you have a bill due that same day.
7. Don’t Panic
This last piece of advice can extend into a lot of other areas in anyone’s life. Even if things seem like they can’t get any worse, it never helps to panic. If you are behind, or some unforeseen financial issues arise that you weren’t prepared for, remember that nothing can be accomplished if you panic. Always be calm and think through the options, and discuss things with anyone else involved. Remember to seek advice if you feel it’s needed, and follow that advice! Nothing gets accomplished when you don’t have a clear head, so don’t panic if your financial management isn’t working out as planned. No matter how broken things may seem, they can almost always be fixed.
So there are seven tips that should at least help with personal financial management. Nothing is foolproof, and most people have had their fair share of financial pitfalls. However, if you stay organized, don’t panic, stay ahead, and are prepared, you should have success in managing your personal finances.
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