Member Login   l   Join Sokule™   l   Sokule™ Lingo   l   Make Money
A Stress Free Life Begins With Stress Free Finances

Finances are sometimes an unpleasant part of life. Your bills can often pile up and you can get overwhelmed. In spite of this situation, you can learn to manage your finances so you can save your money rather than endlessly keep spending it.

Credit card debt should be erased as soon as possible. Even a minor amount of debt means that you're paying creditors to carry over your debt each month. That's money you could be saving! It is always best to pay credit card balances off every month and save interest charges.

Avoiding debt as much as possible is one of the fundamentals of keeping a tight grip on your personal finances. However, there are exceptions, such as car loans or mortgages. Do not use credit too much during your daily life. I always use my credit card because I get up to 3% cash back, but I always make sure I clear my balances at the end of each month.

Make sure that you have a flexible spending account, and if you are a non-tax payer make sure you claim exemption. Where you have a non-working partner, be sure to put as much savings in their account. Be sure also to make the most of your cash ISA’S. You will save money since the income placed into this account is non-taxable.

It is natural to make mistakes and bad money decisions. If you mistakenly get into an overdraft with your bank account, you can in many cases save on fees charged, if you agree beforehand an amount that is preapproved. This is possible if you have a good banking record and good credit rating.

Some individuals spend more than £20 each week hoping to win money in the lottery. It would be beneficial for them to save that money instead. That way, you are certain to grow your money rather than flushing it down the toilet. A good alternative would be premium bonds which is a secure investment with the added element of a lottery style program. You never lose your money; only the interest you would could have earned in exchange to enter monthly draws.

Avoid taking on more debt; instead, focus on paying off existing debt. It sounds like common sense, but sometimes it is hard to do. Eliminate debt one step at a time, and don't apply for any new credit. Being consistent with your habits means you will be debt-free, and care-free, much sooner than you may imagine.

Make concrete financial plans to ensure your personal finances are managed effectively. Having a solid plan is an effective motivational tool, as it helps you to keep a reward in sight, which is more satisfying than pointless spending.

Learning to cut your family's hair, and even your own, will save you some money each month. Your hairdresser might be doing a better job, but you can save a lot this way. It doesn't cost anything to give yourself or your family a haircut. I have my haircut done at home, I bought a shaver for £40, and save £10 haircut bill every time.

Credit cards are convenient and more secure than a debit card. Once you have applied for one, and received your card, you should use it for all of your day-to-day purchases. Most often, credit card companies provide rewards for the use of their cards so you may see cash back on these items. I receive 3% cash back on some cards, but I always make sure I pay it all off at the end of each month. You also get up to 50 days free credit so you can have more money earning interest.

Set up a plan that automatically saves your money with your bank to ensure that a portion of your cash is sent into a savings account every single month via your cheque current account. This can be a great way to ensure that you save consistently without having to maintain rigorous self-discipline. It can also be useful for when you are trying to save enough money for a major event, such as a special trip or a wedding or new car.

Make it a habit to review your credit report often. You can do this once year for free, more often if problems are found. You should do this at least twice a year to make sure that everything on your report is accurate and that no one has stolen your identity.

If you tend to live paycheque to paycheque, it may be wise to seek overdraft coverage from your bank in advance. They may add a fee per month, but most banks will have an arrangement free then charge interest only instead of the standard overdrawn charges at least £5 per transaction.

Most products come with a guaranteed warranty that covers them for a certain period of time. Extended warranties are great for businesses, but they are not always great for the customer.

If married, make sure the partner with the better credit applies for loans. If you're suffering from bad credit, building it can be done by getting a card that you can pay on time. Once you are both happy with your credit score you'll be able to get loans and spread the debt out more evenly.

When budgeting, be sure to allot a bit of cash for pocket money. It's important to have a little spending money for unexpected, spur of the moment purchases. You can use your cash allowance to reward yourself in whatever way you want, but you should not spend more than your allowance. This is a great compromise that lets you stick to your budget and still indulge yourself on occasion. It’s about choosing rather than being a prisoner.

Charity or second hand or thrift store shopping is no longer just for those with low incomes. Save money while finding items you like, including furniture or books at a store near you. These stores are also great for kids, as they enjoy scouring the store for interesting finds. Go shopping early to find the best deals and lots of variety!

It is always a smart financial move to make yearly contributions to an approved Individual Retirement or pension Account. This will increase your personal financial balance in the future. Interested parties could open an account through financial firms, credit unions, banks or even through mutual fund companies. By regularly contributing to your account, you are essentially saving money to supplement your retirement income. It is always wise to take out a company pension scheme especially when they contribute towards it.

I hope these few tips have been help full, and you have a better understanding about savings in hard economic times. Don't fret about the time it will take to make things better finance-wise, just start today. Similar to dieting, it will not change all in one day. You will see incremental changes if you simply plug away at it. Little and consistent will go a long way.

Manjit Biant

http://www.finance4nonfinancemanagers.com


_______________________________________
We provide training courses in finance, accounting, business, leadership, strategy and risk.

Our training and consultancy is aimed at both the corporate and personal finance level. We assist and help the finance manager, finance director, and other non-finance manager that needs help in understanding finance. We help with all areas of finance management, finance education, corporate finance, finance for business and all finance accounting and management issues.

->   http://www.trainingdirectoryuk.com/blog/a-stress-free-life-begins-with-stress-free-finances/521/

 
Recent Posts Get Rss feed for Sokwall



Achives:
 
Recent Posts: