Managing finances has become more important than ever. Costs of items such as food, a college education and travel have been increasing rapidly. Saving for retirement has become more difficult for many. If you understand and follow some basic tips about buying, saving, investing, spending wisely and managing debt, you will more easily achieve financial successSaving Habit
- Saving for unexpected emergencies and retirement is one important key for financial success. Practice saving money. Pay yourself first even if it is a small amount. Set up your paycheck deductions or your bank account to contribute a set percent of your income. If you have kids, teach them the saving habit and how to manage their finances.
Impulse Buying
- Everyone is competing for a share of your wallet. Persuasive advertising sometimes tempts you to buy items you may not really need. Supermarket displays entice you to buy food you didn’t intend to buy. When you see an item you didn’t plan to buy, don’t buy it immediately. Give yourself a day to think it over. After your initial impulse, without immediate buying, you may decide you don’t need the item. When grocery shopping, prepare a list first of what you really need and stick to the list. Don’t shop at a grocery store when you are hungry.Evaluate and Budget
- Controlling and understanding where you spend your money is an important task because if you aren’t in command of your finances someone else will be and the outcome may not be what you want. Analyze your expenses for a month or two to understand where your money is going. Question each category of expense and determine if the expenses are really needed. Eliminate expenditures that aren’t needed. Decide if the money you are spending can be spent more wisely. For example, look at your phone bill. If you aren’t using Internet-based phone services, switch from traditional phone services to Internet-based services. Savings can be substantial.
Invest
- One primary way to secure financial security is by smart investing for the coming years. If you are young and don’t need to save for retirement, you can invest part of your money in more risky but higher-return investments.
Debt Control
- Your financial future can become a failure if you aren’t carefully managing any debt you must incur. If you use a credit card, use it wisely and pay off your bill totally each month. If you don't, you may have to pay substantial late fees. When you sign up for a card, examine the terms closely. For example, if the card promotes a low interest rate, find out if the rate is for a limited period only and what the rate will be after that. Shop carefully for credit cards and get the best deal you can.
Bill Management
- Paying bills on time is a good financial habit. Pay bills immediately. For recurring expenses that are the same amount each month, set up automatic deductions from your bank account. Past-due bills can hurt your credit rating.
Credit Reporting
- Your credit score affects the interest rate you will pay for necessary expenses such as a mortgage. Check your credit score each year. When looking at your credit report, check it for accuracy and that it doesn’t include past-due amounts from someone else. You can get a free credit report from a Federal Trade Commission-approved site, annualcreditreport.com
Education
- Read about personal finance in magazines and recommended books. Attend a seminar about managing money. Often your local library provides such a program free.By Carolyn GrayCarolyn Gray started writing in 2009. Her work history includes line and staff management in the Finance and Controller's Department of New York Telephone and NYNEX. Gray has a Bachelor of Arts in government from Clark University and a Master of Business Administration from New York University's Stern School of Business in Management and Organization Behavior
