The Dos And Don'ts Of Personal Finance
Money is something that is a big part of living. Without it, many things you take for granted would not exist. Many people are not very wise with their finances, and the outcome is not very pretty. If you want to avoid falling into a financial cesspool, you should pay close attention to the following list of dos and don'ts.
DO come up with a sensible budget plan. Many people make the mistake of trying to allow themselves too much or too little money. You should make sure that you set aside enough for all of your essentials, but you should also budget money for extras. This does not mean that you should have a lot of income being spent on unnecessary items, but there is nothing wrong with splurging every now and then.
DON'T use your credit card to make everyday purchases. You should only use credit cards when you are buying things that cost an excessive amount of money. Furniture, electronics and used cars are several items that should be purchased with a credit card. If you are buying things like bottled water, chewing gum and newspapers, it is best to use a debit card or cash. The amount of money you pay in interest is not worth it when you buy small items.
DO shop at a variety of different stores to get the best deals. Many people try to go to all-in-one stores, but that is not a great financial decision. While it saves time, it definitely does not save money. Before heading to the grocery store, try visiting a butcher, a fish market and a fruit stand. Once you have a look at all of your receipts, you will notice the amount that you have saved.
DON'T get in the habit of paying things late or overdrafting. These are two financial mistakes that cost people thousands of dollars a year. It is important that you keep a track of all of your balances, so you can avoid going over your limit. You should also try to make payments a week ahead of schedule so you don't encounter any issues with late payments.
DO take a look at all of your subscription services to see if they are all necessary. Cancel any that you don't feel are absolutely necessary. There are many households that have cable television, subscription DVD programs and a costly streaming service. There is no reason to have all of these, so try to downsize. Figure out which services give you the most benefit and eliminate the rest.
DON'T buy something you don't need just because it is inexpensive. It may seem right at the moment, but that is how stores make a lot of their money. They offer discounts if you buy a lot of the same product. This is great if you actually have use for the product at hand, but it is a waste if the product is going to sit on you shelf at home and get dusty.
Once you realize the things you should and should not be doing when it comes to finances, things are a lot easier to deal with. It may be difficult to make changes at first, but over time it will become a regular part of your agenda.
