The Basics Of Good Personal Finance Management

January 14, 2021 by No Comments

Knowing how to properly manage personal finances is not a skill that people are naturally born with. To get the most out of your money, and manage your finances in a way that protects your financial security, takes a lot of education and learning. The knowledge contained in this article is designed to help you better manage your personal finances.

It is important that you file your federal income taxes in a timely manner. To receive your tax refund as quickly as possible, you should file your income taxes early. On the other hand, if you know you will have to pay the government additional to cover your taxes, filing as close to the last minute as possible is a good idea.

When you’ve decided on a monthly budget for your new car purchase, make sure that the monthly price you pay for the car loan itself is at least 5% less than your decided budget. You will need this wiggle room for gas, insurance, maintenance and possible repairs.

Always buy used cars over new and save yourself money. The biggest depreciation in car value happens during the first 10,000 miles it is driven. After that the depreciation becomes much slower. Buy a car that has those first miles on it to get a much better deal for just as good a car.

As a college student, you will want to reduce the amount that you spend on books and supplies. Instead of purchasing books at the campus bookstore, which is usually at retail price, make friends with upperclassman who can give you these books at a discount. This can save you hundreds of dollars per semester.

Never withdraw a cash advance from your credit card. This option only rears its head when you are desperate for cash. There are always better ways to get it. Cash advances should be avoided because they incur a different, higher interest rate than regular charges to your card. Cash advance interest is often one of the highest rates your card offers.

If you like bidding in auctions and enjoy a great find, buying items in abandoned storage lockers may be the thing for you. Buying these lockers offer the possibility of finding a potentially valuable item. This item can be resold for a much higher price giving you some financial gain.

If your mortgage is in trouble, take steps to refinance as soon as possible. While the case used to be that you could not restructure a home loan until you had defaulted on it, today there are many actions you can take before reaching that point. This sort of financial triage is extremely valuable, and can minimize the pain of a mortgage crisis.

As was mentioned earlier, people are not born knowing how to properly manage their personal finances. Successful financial management is a skill that is learned. Read this article several times to take in all of the information that it contains, and then apply what you’ve learned to your own situation and see how it can improve your life.