If you are one of the millions living paycheck to paycheck, taking control of your personal finances is necessary. This may mean learning to live in an entirely different way than you are used to. Follow the advice below to take control of your personal finances and ease the transition to the changes you must make.
If you love to shop, one tip that you can follow is to buy clothes out of season. When it is the wintertime, you can get great deals on summer clothes and vice versa. Since you will eventually use these anyway, this is a great way to maximize your savings.
A major indicator of your financial health is your FICO Score so know your score. Creditors use the FICO Scores to decide how risky it is to give you credit. Each of the three major credit bureaus, Transunion, Equifax, and Experian, assigns a score to your credit record. That score goes up and down depending on your credit usage and payment history over time. A good FICO Score makes a huge difference in the interest rates you can get when buying a home or car. Check out your score before any major purchases to make sure it is a true reflection of your credit history.
To keep your personal finances solid, budget for all your necessities and savings, pay to them first, and only use what is left over for wants or perks. This should be done every week to ensure that you stay on top of your bills and build up your savings instead of spending everything that is left over and having nothing in case of an emergency.
Pay down high interest rate credit card debt, loans, and other financially strapping bills with high interest. The longer you take to pay these bills off, the more you throw money down the toilet in interest. This makes it impossible to maximize your savings and investments. Pay down that high interest debt!
Re-check your tax withholding allowances every year. There are many changes of life events that can affect these. Some examples are getting married, getting divorced, or having children. By checking them yearly you will make sure you’re declaring correctly so that too much or too little money is not withheld from your paychecks.
To conserve water and save money on your monthly bill, check out the new breed of eco-friendly toilets. Dual-flush toilets require the user to push two separate buttons to flush, but work just as effectively as a regular toilet. Within weeks, you should notice decreases in your household water usage.
Get a credit card that gives you rewards or cash back. If you pay your balance in full every month, then it only makes sense that you would use a card that pays you to use it, rather than one that doesn’t. Rewards are often airline miles or pre-selected merchandise.
You will begin to feel a sense of fulfillment once you take control of your personal finances. The advice above will help you achieve your goals. You can get through the worst of financial times with a little bit of advice and sticking to your plan will assure success in the future.