Tough Time Dealing With Your Personal Finances? You Need This Advice!

The application of the principles of finance to an individual's or family unit's monetary decisions is called personal finance. There are many aspects to personal finance, and they include but are not limited to checking and savings accounts, credit cards, consumer loans (car loans, mortgage), market investments, retirement plans, and insurance policies.

Logging your expenditures is helpful in gaining an understanding of where your money is going. A notebook that is easily set aside or lost is probably not the best method, as it is often soon forgotten. Try listing your expenditures on a whiteboard located in your room or your home office. This serves a more visible reminder and will help you to stay on track.

Set up your bank account to transfer a predetermined sum of money from your checking to your savings once a month. You will forget you even have this money or see it as a bill, just like any other expense. Your savings can add up quickly by doing this.

Buying used can save you a lot of cash. Cars for example, lose up to 20% of their purchase price, just by signing on the dotted line and driving off the lot in it. Let someone else pay for that depreciation by purchasing a car that is a couple of years old. You will still have a low mileage warrantied car, but without the hit to your equity.

Use Skype for overseas calls. You will find that it is not going to cost you much money and it is going to be much easier than messing around with calling cards. If that is not an option, use your cell phone rather than the hotel phone. You may have to pay more for minutes on your phone but you avoid being overcharged by the hotel.

Adjusting the temperature that you have your hot water tank set at will help you reduce your monthly utility bills. It only takes a minute but it will save you a great deal of money over the year. It will also help to prevent burns on children that could potentially happen.

To reduce credit card debt completely avoid eating out for three months and apply the extra cash to your debt. This includes fast food and morning coffee runs. You will be surprised at how much money you can save by taking a packed lunch to work with you everyday.

Make a will. It is vital to ensure the protection of your loved ones in case of your death. Not only will your assets be handled according to your directions, but more importantly a will assigns guardianship of your minor children. Lawyers or financial planners can ensure that your will is a valid legal document and also offer advice about tax-saving strategies.

A great personal finance tip that can help you keep your expenses down is to always make sure you eliminate services you have no use for. If you own a cell phone and you don't use text messaging, you're just wasting money if you're paying every month for text messaging.

A good personal finance tip that can help you save money is to share an entree with your spouse or friend when you decide to eat out. Some restaurants serve portions that are too big for one person anyway. By sharing an entree, you'll save a lot more money.

If you need any type of checking account or an account with debit card access, look for free options. They are out there, even though you might have to look long and hard. Not every bank is going to make you pay a fee for debits. So make sure you find one offering free services.

Make sure you qualify for Chapter 7 bankruptcy before you waste money on a consultation. Under the 2005 bankruptcy reforms, only people who make less than the median income for their state can file for Chapter 7 protection. If you happen to make more than that, you can still set up a Chapter 13 repayment plan.

Cut down on impulse buying with the "one week rule". If you want to buy something, make yourself wait a week before actually spending the money. Chances are, your spending will decrease because you probably will not even remember what you wanted to buy last week or the week before.

Start building your investment portfolio early in life! Even if you have to start small, research shows that the length of time you are investing matters more than the amount of money you start with. Starting early also allows you to take advantage of compounding interest, a process by which your money grows over time.

Use the round up method in your checkbook to record all transactions made by checks and debit cards and build an instant savings and safety net into the account. If the check written at the gas station was for $41.03, round up to $42.00. If the cash withdrawal from the ATM was for $50.00, round up to $51.00. Even the smallest amounts add up to big money over the course of a year and always ensure there is money in your account.

If you can set up an automatic withdraw from your checking account into your savings account, you should definitely do it. If you put that money away before you see it in your account balance, you are less likely to miss it when it is not there and you will not forget to move it to savings.

Get a flexible spending account through your employer if they have one. This is money that is put aside out of every paycheck that is saved to pay for medical costs or dependent care. The dollars are deducted pre-tax, so you would usually save around 15 percent on these expenses.

Personal finance is a way to address the various uses of monetary resources allocated to an individual or family unit. It takes into account the ways in which the monetary resources are obtained, budgeted, saved, or spent over time and also encompasses the various financial risks and possible future events.