Managing personal and family finances is an art actually. Most of you would fail to do so, if you lack the knowledge of finance management. However, if you are keen interested in the matter, you are all in all. It doesn’t matter how much you earn. But it matters how much you save at the end of each month. Make a budget in each month. Budgeting would help you keep track of the money you spend during a month. And a proper budgeting would definitely help you save money in every month. At the same time it also keeps you informed of the expenditure which was actually uncalled for.
The following are some tips which can be considered as a base for proper management:
When it comes to buy a house, you can’t make it without a mortgage. Mortgage assumption is a task left with you. If you are done with it correctly and affordably, you save most of your money. Paying off your dues before the term can save you from unnecessary stress. If you count, you’d find that you are saving a few dollars in interest which sometimes become nuisance for most of the people.
While using your credit card, make it a point to pay off your debt at the end of each month. The motto of credit companies is to make you fall in debt and thereby gaining huge interest from you. So, beat them and keep your pace ahead. You would always be gainful which most couldn’t make it.
Avoid taking a home equity loan at any cost. It doubles your debt with unbeatable interest on your loan. You have a danger of losing your home and job both. So, it’s better to keep restraint from such beneficiaries.
If you borrow to buy a car, try to pay it off as quickly as possible. If you have a 3 year loan term, pay it within 2 years. Your delay in payment would cost you heavily. Further you will certainly want to have your vehicle of a good mileage and everything concerned. So, first try to gather knowledge about the vehicle you want to buy and then arrive at your decision.
The same applies when you make purchases of furniture and appliances. Walk the market round to have the best one for you. You can talk to people to have a better and quick knowledge.
The bank lends you money easily on credit cards. The interest on loan they earn is from 18% to 29% on each month. So, it’s better to keep distant from such lending policies. Remember! nobody is a friend of you in a lending policy.
Finance management is not tricky nor does it involve any science. Mere knowledge on financial terms, payments, utility bills, insurance will just help your manage your finance efficiently which will actually work. The best part of finance management is just to save money as much as you can. It’s the base of personal finance. So, use your resources as effectively as possible.