Realizing that you have more debt than you can afford to pay off can be a frightening situation for anyone, regardless of income or age. Instead of becoming overwhelmed with unpaid bills, read this article for tips on how to make the most of your income each year, despite the amount.
Don’t sell if the time is not right for you. If you see that the earnings potential for a stock is there, refrain from selling for a short time. You can look at your stocks that are not doing so good, and figure out if you wish to move those around.
Do not close credit card accounts in hopes of fixing your credit. Closing credit card accounts will not help your score, instead it will hurt your score. If the account has a balance, it will count towards your total debt balance, and show that you are making regular payments to a open credit card.
Prepare your personal finance with the right insurance policy. Illnesses can spring up suddenly. So, it’s very important to have the best possible health insurance for your family situation. If something unforeseen happens, medical bills will quickly add up. If you don’t have insurance, you will be responsible for the entirety of that bill.
If you’re very good at paying your credit card bills on time, get a card that is affiliated with your favorite airline or hotel. The miles or points you accumulate can save you a bundle in transportation and accommodation costs. Most credit cards offer bonuses for certain purchases as well, so always ask to gain the most points.
Avoid buying new gadgets as soon as they come out. As we have all seen recently with some of the hottest new products, the price tends to come down within the first 6 months of release. Don’t jump on the train to buy your new toy at release, and you’ll save yourself a bundle.
Set up a deduction from your paycheck to automatically go to your savings account. Saving is much easier when it requires no further conscious action. As you begin to think of your spendable income as the new, smaller amount, you can adjust your budget accordingly while your savings keep growing with every deposit.
If you have a friend or family member who has some experience in the finance professions, they may be able to give you some good advice about managing your money. One could also try to seek out the advice of a family member who seems to know how to handle their money.
If you are planning on not paying a bill this month, don’t let it be your insurance premium! In as little as two missed payments you could find your insurance coverage canceled. If you’re already facing financial difficulties, this will NOT be the time to have to pay for any accident that happens out-of-pocket!
Unless it’s an actual emergency, stay away from the ER. Make sure and locate urgent care centers in your area that you can go to for after hours issues. An ER visit co-pay is usually double the cost of going to your doctor or to an urgent care clinic. Avoid the higher cost but in a true emergency head straight to the ER.
Get yourself a free checking account. Checking accounts these days charge an average of about $13.00 in monthly fees, and usually require a minimum balance to keep the account free. Switch to a no-fee account that requires no minimum balance and does not charge per transaction. Try smaller banks in your community, online-only banks or credit unions.
Track the money you spend each month. Although many people hate to be reminded of where their money goes each month, tracking it can help you identify ways to save wasted dollars that can go to a more worthy cause. Commit to tracking your spending for just one or two months in the beginning, and challenge yourself to find the “fat” to trim in your monthly spending.
As was mentioned in the beginning of this article, finding yourself in debt can be scary. Manage your personal finances in a way that puts your bills before unnecessary spending, and track how your money is spent each month. Remember the tips in this article, so you can avoid getting calls from debt collectors.