In an earlier post we went over some very basic money management tips. Here are a few more that go a little further and may help you work your way out of debt and put a little money into a non-retirement savings account.
- Set SMART goals for finances…SMART means specific, measurable, attainable, realistic, and timely. Being a millionaire is not what we are talking about here. Having enough money in the bank to pay your bills for at least three months if you lose your job, is.
- Develop a respect for credit cards…credit cards are a great way to build credit, but can get out of hand quickly. Never pay your monthly bills with your credit card and do your best to pay the full balance each month.
- Reduce your debt…Sounds simple, but one of the hardest things to do. Many people struggle to make minimum payments. Start with one debt. Pay 125% of the minimum payment until the balance is zero. Of course, this only works if you stop using the line of credit.
- Never make a late payment…Why give away your hard earned cash to cover late fees? Also, one late payment can undo months of positive information on your credit report.
- Start looking for savings…Pinching pennies is a harsh way to look at it. Look for waste like paying too much for auto insurance or eliminating your landline. Simple things that you rarely use could be draining hundreds of dollars from your budget each month.
Handling personal finances and managing money are difficult issues. Learning to control them is often cited as the first step to a comfortable life. Hopefully, these tips will help you.