Guest Post: Swap Your Overwhelming Financial Promises for Some Smart Money-Saving Tips
2011 June 8
According to a recent financial poll made by the NFCC or the National Foundation for Credit Counseling, it has been found out that decreasing credit card debt was the No. 1 financial resolution for 2011, with credit repair, boosting savings and reducing the dependence on the credit cards. However, one personal finance expert has opined that we must all ditch such overwhelming financial resolutions and swap them for some smart money-saving habits. He says that such money-saving habits can be accomplished easily than the financial promises. Though there are credit card consolidation options that can assist you while you’re going through money problems, yet it is better to maintain a healthy financial life by following some money saving habits.
- Set up a personal finance goal: Unless you set up a personal financial goal, you can never make sure what you have to achieve in the near future. Set some goals regarding your income and expenses so that you don’t need to suffer in the near future about the various monthly obligations that you have to pay back. Set some savings goal and determine what you need to save within the next 5-10 years and set up a savings account to materialize your goal.
- Save for your emergency fund: You must save enough money for the future as without an emergency fund, you can never stay sure about the financial future that you may come across. Save at least 10% of what you make each month and open a savings account with a reputable bank. Don’t use this account as a piggy bank as this will make the money useless. Try to use the proceeds of this bank only when you’re in dire need of cash.
- Contribute to your employer’s 401(k) account: If you’re not contributing money to your employer’s 401(k) match, you’re perhaps making a big mistake. Though the employer’s match some contributions for the employees, there are many who don’t even qualify for a match. However, most personal finance experts recommend that people must contribute a part of your monthly income irrespective of the matched contribution by the employer. Consider yourself to be lucky and start contributing money.
- Set up automatic bill payments: Organizing your credit card bills can become easy by setting up automatic bill payments. The first step that you can take is to make automatic payments on your credit cards online. There are many credit card companies who charge a consumer hefty late fee for a payment that is even late by a few minutes. Late fees may unnecessarily add to your already high monthly payments. Avoid such fees by making timely payments online and save your dollars.
- Prevent yourself from using your credit cards: You must try to prevent yourself from using your credit cards as this can get you into further financial trouble. Credit cards may seem to be extremely useful plastics, but most often you will see that these are the tools that get you into serious monetary danger. Credit cards, the lesser used, the better you can manage your personal finances.
- Avoid buying things that you don’t need: Avoid buying things that you do not need and learn to distinguish between your wants and needs. Concentrate more on your needs so that you don’t end up wasting your dollars on the things that you want and that you can live without.
Apart from the above mentioned points, you can also try to invest and earn money. Though investment is a bit risky but you can easily make sure that you earn loads and use them to pay off your debts through credit card consolidation. Learn to manage your finances as this is the only way in which you can get back on track.
Contributed By: Jenney Roberts
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