Get Your Personal Finance Straight in 2016!
Tuesday, January 26, 2016, 6:00 AM | Leave Comment
Experts say that the world economy is blooming and that all the consequences of 2008 Economic crisis are finally gone. Lots of people don’t feel this way, being pressured by cars, credit cards, mortgage loans, trying to collect enough money to pay their kids’ college fees and to add something to their 401(k) plan.
In this article we will share some useful advice that will help you to set your personal economy straight and save more money for that dress or sneakers you have always dreamed of.
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Mortgage
Before even thinking about buying a home, people need to closely evaluate their needs and determine what type of home and mortgage they can afford.
People tend to buy pricier homes, thinking that something will come up.
When thousands of people do this nationwide, banks end up with Subprime mortgage crisis, and when only one half-cocked and optimistic Joe or Jane does it, he/she ends up with foreclosure.
If you already signed a mortgage loan, which now feels like carrying a ball and chain everywhere you go, there are several ways you can make it less painful.
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Give extra payments– these payments are also applied to your balance, which lowers the principal debt and interest fees.
You need to determine schedule for these extra payments, you can add them bi-weekly, monthly or quarterly.
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Refinance– refinance your mortgage debt with a loan that comes with lower interest rates.
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Downsize– Sell your home and buy a smaller and less-expensive one.
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Start using finance apps
Mint is the most popular personal finance app that can be found online. It connects to accounts in many different institutions and can be used for advanced expense tracking.
Using personal financial apps brings plenty of benefits. Users can follow their money flow, easily spot unnecessary expenses and make spending plans for months to come.
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Pay off the credit card debt
With credit cards you should always try to add more money to the account than the minimum monthly payment.
Credit card companies love debtors who pay minimum amounts each month, because they pay much higher interests.
If you by any chance have a credit card debt you haven’t been able to pay in full, always concentrate on paying the part of the debt that comes with the highest interest fees.
If after some time you are still not able to pay your debt, try calling a credit card company and proposing them a deal.
Although it’s unlikely for them to negotiate about debts they need to collect, they might relieve you from some late interests or give you a longer deadline.
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School and college fund
The kids’ college fund is a huge burden for every ambitious parent.
Some people can’t keep up with regular payments, which leads to one of those horrifying moments, when they need to tell their kid that the college they want to apply to is off-limits.
That’s why it is important for parents to start saving for their kids’ tuition fees as early as possible.
Parents who are not able to save enough money to send their kids to private college will need to find some other payment solution, such as school easy pay for example, which allows them to pay their kids’ tuition fees in up to 12 equal installments.
People often have a lot of trouble with setting their finances straight. In fact, when it comes to finances, situation is always very clear.
The only way you can save money is by spending less than you earn.
Most people remember this sentence only when they are up to their neck in debts.
That’s why debt prevention should be on your mind, from your payday until the end of the month.
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