Personal Finance advice! Everyone wants to know how to hold on their money. Unfortunately, Americans are not very good at it. These 10 rules of personal finance can help.
Everyone wants to know how to keep their hard-earned money. Unfortunately, most Americans are not very good at it. The USA has one of the lowest savings rate in the world. Meanwhile, American households carry some of the biggest debts, mainly on credit cards.
These 10 rules of personal finances are intended to help.
1. Pay yourself first. Whether through your employer-sponsored 401 (k), an individual retirement account or savings booklet, sock away at least 10 percent of your income for you. After all, you are not working just to pay bills, it is estimated that only a lot of time.
2. Save three to six months' worth of income in case of emergency. And do not touch unless it is truly an emergency. Registration for vacation or a new wardrobe are not emergencies. You never know when you may lose your job, become disabled or sick, or have a major medical or family emergency.
3. Take advantage of your employer-sponsored 401 (k) plan. Contribute at least as much as your employer match, which is generally between 3 and 10 per cent. Consult your human resources department at your job for more details on how this particular 401 (k) plan.
4. Paying credit cards with interest rates highest in the first. Obviously, there's no sense to repay a map of 12 percent before a map of 15 percent. Make minimum payments on the map of 12 percent until the one who has the rate of 15 percent is borne fruit.
5. Come with a budget and stick to it. You can use a computer program or simply the pen and paper. But doing so. Calculate your income and expenses and what you have missed more than you want.
6. If you have difficulty determining where your money goes, especially in cash, then keep a log of expenditure. Document all expenses for at least a period of two weeks. This will help you to come with a budget as well.
7. Do not borrow from your 401 (k) or pension plans. The money, after all, this is for your retirement. In addition, tax implications and early withdrawal penalties are so large that you really give up much for a short-term cash infusion. You must have a savings account for your current needs.
8. Pay cash whenever and as often as you can. It is amazing how good that feels.
9. Shop for the best deals on credit card and banking programs. By withdrawing a few percentage points on your credit card or avoid bank charges, you can save hundreds of dollars per year.
10. Avoid peer pressure. Your friend might be able to offer five new pairs of leather boots, but that does not mean that you can. Who knows, even if your friend can and who cares. Take care of yourself first and not try to follow the neighbours. There will always be people better off and worse off than you are.
Everyone wants to know how to keep their hard-earned money. Unfortunately, most Americans are not very good at it. The USA has one of the lowest savings rate in the world. Meanwhile, American households carry some of the biggest debts, mainly on credit cards.
These 10 rules of personal finances are intended to help.
1. Pay yourself first. Whether through your employer-sponsored 401 (k), an individual retirement account or savings booklet, sock away at least 10 percent of your income for you. After all, you are not working just to pay bills, it is estimated that only a lot of time.
2. Save three to six months' worth of income in case of emergency. And do not touch unless it is truly an emergency. Registration for vacation or a new wardrobe are not emergencies. You never know when you may lose your job, become disabled or sick, or have a major medical or family emergency.
3. Take advantage of your employer-sponsored 401 (k) plan. Contribute at least as much as your employer match, which is generally between 3 and 10 per cent. Consult your human resources department at your job for more details on how this particular 401 (k) plan.
4. Paying credit cards with interest rates highest in the first. Obviously, there's no sense to repay a map of 12 percent before a map of 15 percent. Make minimum payments on the map of 12 percent until the one who has the rate of 15 percent is borne fruit.
5. Come with a budget and stick to it. You can use a computer program or simply the pen and paper. But doing so. Calculate your income and expenses and what you have missed more than you want.
6. If you have difficulty determining where your money goes, especially in cash, then keep a log of expenditure. Document all expenses for at least a period of two weeks. This will help you to come with a budget as well.
7. Do not borrow from your 401 (k) or pension plans. The money, after all, this is for your retirement. In addition, tax implications and early withdrawal penalties are so large that you really give up much for a short-term cash infusion. You must have a savings account for your current needs.
8. Pay cash whenever and as often as you can. It is amazing how good that feels.
9. Shop for the best deals on credit card and banking programs. By withdrawing a few percentage points on your credit card or avoid bank charges, you can save hundreds of dollars per year.
10. Avoid peer pressure. Your friend might be able to offer five new pairs of leather boots, but that does not mean that you can. Who knows, even if your friend can and who cares. Take care of yourself first and not try to follow the neighbours. There will always be people better off and worse off than you are.
