Mar 232017
 

Sometimes managing your personal financial situation can feel overwhelming. If you’re knowledgeable about them, though, it can be made easier. Read on to discover the keys to getting on top of your personal finances.

If a credit repair company guarantees that they can improve your credit history, be very wary. Companies will make a statement and say that they can fix your credit. This isn’t even possible, since every individual has different credit issues. Guaranteeing success is fraudulent.

Debt should be your last resort, because debt can lead to poor personal finances. Some debt is normal, such as education loans and mortgages, but try your best to avoid bad debt such as credit cards. Avoid borrowing money that has high interest rates and fees associated with it.

Many products out there have some kind of a warranty on them, and if something should go wrong with the product, it would tend to happen during the period of the warranty. Businesses make a lot of money off of extended warranties but they are not always useful for the end user.

If your credit card is close to its limit, use a different one rather than letting it max out. The interest that you will have to pay using multiple cards will end up being smaller than it would be on one maxed out card. The lower amount will be less of a burden to your credit, as long as you stay in control of both cards.

Credit Card

Stop using your credit card if you have a hard time paying it off. Cut out as many expenses as you can, and use something other than your credit card to pay your bills. Make sure you pay off what you owe before you use the card again.

Avoid excessive fees when investing. Investing brokers dealing with long term situations charge service fees. These fees will take away from the money that you earn because they are paid before you get your earnings. Do not use brokers who take big commissions, and stay away from funds with high management costs.

Instead of having a debit card, you may want to think of getting a credit card. If your credit card application is approved, use it to buy everyday items, like food and gas. Most of the time, you’ll get rewards or cash back when you use a credit card to purchase these items.

Take advantage of your flexible spending account. Flexible spending accounts can help you save money on medical costs and daycare bills. This type of account makes it easy to set aside pretax income for different expenses. Consult a tax professional to find out what kind of expenses qualify for this account.

Pay off those credit cards that have high balance and high interest first. Though paying them off equally sounds more reasonable, the high interest fees will prevent you from paying it off at any rate. Keep in mind that credit card rates should increase in the next few years; pay off your accounts as soon as you can.

Always know when to file your income taxes with the IRS. If you need money fast and anticipate a refund, file early. If you owe money, it may be wiser to file your taxes just before the due date in April.

If you find the task of balancing your checkbook manually to be too much trouble, you can do it online instead. There are many programs and websites that take a lot of the drudgery and repetition out of doing it by hand. In addition, these programs will add up interest, cash flows and give you some advice about budgeting.

Keeping your tax information well organized throughout the year will make tax time less stressful. All important documents, receipts and records should be kept in one central location so that you can easily lay your hands on them when tax time rolls around.

Watch out for any letters telling you about changes that your credit card company makes. The law says that they have to let you know 45 days ahead of time. Look at these changes to figure out if you should keep the account. If they are not, then close it!

Big lifetime purchases include buying a car and a home. Payments and interest payments on those items are probably going to make up the bulk of your budget every month. Try to get the balance down by at least sending in one additional payment every year or applying some of your tax return money to the balance.

Personal Finances

Like the introduction of this article said, dealing with your personal finances can stress you out. Knowing ways to deal with your finances can aid you in lowering your stress. The article that you just read will help to set you on the path to improve your personal finances and find some peace of mind.

MoneyWise Personal Finance Seminar - Module 1

The first of six modules held during the MoneyWise Personal Finance Seminar at Brigham Young University, winter 2015.

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