Manage Your Personal Finance Management

Thursday, January 2, 2014, 1:00 AM | Leave Comment

Managing your personal finances is not something that everyone can do effortlessly and nor it is taught in any school. But admit it or not, it is something that everybody has to deal with in their lives at some point of time.

It has been found out through researches that almost more than half of the Americans don’t have any retirement plans and they don’t know how they will manage all the expenses after retirement, or when they will grow even older!

While it is usually considered that approximately $300,000 would be required to support life after retirement, most of the people have only $25,000 at the time of retirement.

Again, for most of the people household credit card debt stands at an amount of $15,204.

If you are shocked to know these facts and if you won’t like to experience something similar, please read on for targeted and specific advice, following which you will be able to achieve a better future, financially –

  • Make a budget

    For the first month, you just have to track all your expenses, without restricting yourself from making any sort of expenses. Just get an idea about your main expenses during any given month.

    One of the best ways to do this is to gather all the receipts and bills, make a note of how much money you require and how much you expenses from credit cards and also find out how much cash you are left with at the end of each month.

    Write down each of he expenses, minutely. Even if this sounds a bit boring initially, it would help you in the long run. Based on your spending history and habits and your actual expenses, decide how much money you would like to spend for each expense.

    Be honest with your budget from every aspect and follow it religiously. Also, keep a track of the budget over a fixed period of time.

  • Spend your money wisely

    This is one of the key methods to manage your personal finances perfectly. Things like books, tools, magazines, athletic equipments, DVDs etc. can all be rented for small amounts of money.

    Why would you engage your hard-earned money in buying things that can easily be rented? But while renting certain things, make sure you don’t opt for things that come with excessively high interest rates.

    Treat your credit card like cash so that you don’t run up balances that you know that you won’t be able to pay off and consider getting loans from agencies like to handle emergencies.

  • Make Smart Investments

    Familiarize yourself with the different investment options and the financial instruments and possibilities. Ask your employers if they offer any type of retirement plans, as most of the employees opt fro 401k plan and also look for other ways using which you can secure your future, financially.

    If you are going to put money in stock investments, make sure you don’t gamble with that. Also, make sure you have good insurance coverage.

Author’s Bio

Sam Payn is a popular author and is associated with a number of reputed blogs since the last few years. His areas of interest include personal finance, debt management, insurance etc.

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