College students have many things that they often blow their money on, such as hitting up clubs and eating out. Learn to spend wisely, be responsible and avoid going into debt whenever possible.
You should write down every penny you spend to find where you are blowing the most money. Having said that, it is useless to write this down into a small notebook that you usually keep out of your sight. Try listing your expenditures on a large whiteboard in your office or bedroom instead. When you see what you're spending throughout the day, your finances will be on the forefront of your mind.
Almost every new product comes standard with warranty that covers 90 days from the purchase date, and some products are warrantied for a year. Chances are, if your item fails, it will do so within the time frame of the standard warranty. Extended warranties can end up costing you more money in the long run.
In order to build good credit, you should be using two to four credit cards. Only using one card at a time makes it difficult to build up a solid credit score; however, using a greater number of cards than four makes it difficult for you to efficiently manage your finances. If you want to build credit, keep two cards and don't add others unless necessary.
A home and a car are probably going to be the largest purchases you have to make. Payments and interest on these things will be the thing you spend the most on every month. Repay them faster by making an additional payment every year or applying tax refunds to the balances.
To gain financial stability, you need to have a savings account that you contribute to on a regular basis. The savings money should only be used for emergencies, college costs or major expenses, like a down payment on a house. Even if you can't deposit a lot, you should still save up what you can.
You may not know that after a certain period of time, debts expire. Ask an expert about when your debt will expire and do not pay anything to a collection agency that tries to get your money for an old debt.
Negotiate with collectors to see if you can get your debt or at least your interest reduced. They most likely bought your debt from the original company for a much lower price. So, even if you can only pay them a small piece of what you originally owed, they will probably still make a profit. Making a reduced payoff is a good way to put old debts to rest.
One way to improve one's personal finances is to cut back on expensive restaurant trips and, in fact, to avoid all sorts of ready-made meals. Buying the ingredients and putting meals together at home will save one money, as well as giving one an appreciation for the effort it takes to make good tasting meals.
Create a good budget and a proper shopping list in order to help you make the most out of your personal income and finances. Put the advice from this article into use and you will find your finances will get on track and stay there.
Comments
Post a Comment