Young adults and college students often find it tempting to spend great sums of money on fun things. Instead of doing that, be fiscally responsible and take care of your finances to prevent your debt.
During these tough economic times having your savings spread around in many places is the best solution. You may place money in savings accounts, checking accounts, stock investments, high-yield accounts or gold investments. Apply any or all of these ideas to save your money.
To understand how you spend money, keep a journal listing every cent you spend for one week. By writing it inside a notebook that can be closed, it might get forgotten because it’s not in plain sight. Try using a whiteboard in your den or home office to document your finances. You will pass by it all day so it stays in your mind.
The two biggest purchases you make are likely to be your home and car. The payments and interest rates on these things is likely going to be a large portion of your budget. Pay them off as quickly as you possibly can by including extra payments each year.
Help get your personal finances in order by getting a good health insurance policy. Everyone gets sick eventually. Good health insurance is crucial in those situations. You may find hospital bills in the amount of $20,000, or even more. If you don’t have insurance, you will be responsible for the entirety of that bill.
Stop charging the credit cards you cannot afford. Reduce your expense as much as you can and find another payment method to avoid maxing that card out. Before using the card again, pay off the balance in full.
Take out your incandescent light bulbs and start using high-efficiency CFL light bulbs instead. Replacing your old bulbs with CFL bulbs is better for the environment, and will result in a lower electric bill. Compact florescent bulbs last a lot longer than their predecessor. By purchasing fewer bulbs, you won’t be spending as much money.
Student loans are something that you should take out only if you really need them, as they can come back to haunt you in time. If you have not yet chosen a major or mapped out your career path, private school tuition may not be your best bet.
One of the smartest things you can do to stay in control of your finances is to lay out exactly what you need to purchase, and the amount of money you have budgeted for each item. Stick to to the budget. Use these tips to avoid any of your accounts going into collections.