|
|
|
|
Financial Tips15 Signals That Hint 'Financial Trouble'
- "Spending money makes me feel good."
- "I let others (or I wish there was another to) handle my finances."
- "Someone will come along and rescue me"
- "I rarely balance my checkbook."
- "I now use my credit cards for small items I used to get with cash."
- "20 percent or more of my take-home pay goes for debt payments."
- "I'm afraid to calculate my net worth."
- "I frequently find myself borrowing small amounts of money."
- "If I lost my job, I'd be out of money in less than two weeks."
- "It makes me uncomfortable to talk about money. "
- "I don't know the total amount of my debts and obligations."
- "It is very difficult for me to save any money at all."
- "It seems to be a paycheck to paycheck life-style."
- "There have been occasions when I have paid late charges on a loan."
- "I have used (or plan to use) a debt consolidation loan to pay my bills."
Good and Bad Credit Card Use
Credit Cards are Good...
- For identification (required for train/air tickets, movie tickets)
- As a safer substitute for cash.
- For automatic record keeping.
- To consolidate many purchases into one payment.
- To save money when you can take advantage of a good sale or offer.
- For placing orders easily by mail or phone.
- When you have leverage against the merchant when a problem arises. Your dispute/claim will get prompt attention when the merchant knows your payment can be delayed or disputed.
But Don't Use your Credit Card...
- As a recurrent temptation to overspend
- To purchase non-essential items.
As a result you may,
- Increase impulsive spending.
- Make payments late or only partially.
- Face bankruptcy.
How to Keep a Watch on your Spending Habits
- Write down all of the poor spending practices that you need and want to change.
- Write down how you plan to bring about the changes in each area.
- Construct a cash-flow sheet showing income and outgoings.
- Set up and implement a spending-plan.
- Discontinue borrowing and using credit cards.
- Begin collecting and making notes on your cash purchase receipts.
- Begin saving a little bit, everyday.
- Look for alternatives and substitutes to spending.
- Start utilizing discount coupons for rebates.
- Wait for the sales. Comparison-shopping can save you a lot of money.
- Take advantage of factory seconds rebuilt and used items where practical.
- Start doing things for yourself that others were paid to do previously.
- Separate shopping trips (when comparing prices, value,, etc.) from spending trips. (when actually making the purchase). Avoid carrying credit cards or extra cash on shopping trips.
10 Good Habits of Personal Finance
- Manage your expenses so they don't exceed your income.
- Spend money thinking of your future as well as your present.
- Begin saving early to take advantage of compound interest.
- Avoid collecting credit cards and using them for borrowing.
- Always honour your debts and other financial obligations.
- Project your income and expenses for the next 12 months and track variances.
- Focus on the relationship between the risk and projected return of investments.
- Maintain organized records for tax and general financial planning purposes.
- Have a plan and a purpose for your investing.
- Obtain a financial education to be in a position to make intelligent financial decisions.
|
|
|
|