Spending money without a plan can be a huge financial mistake. When forgetting there is another day ahead, you are able to get yourself in trouble. Of course, nobody is perfect and it’s no fun being a tightwad. Mistakes could be avoided when using personal finance management. Source of article – How to keep away from personal finance mistakes that cost a lot of money by Personal Money Store.
Budgets help stop personal finance mistakes
It is a mistake to stay away from budgeting. Spending without knowing where your money is going will leave you broke. Where you spend your money is not all a budget is about. Bankrate.com reports that to create a spending budget you have to start tracking your expenses first. Tracking your spending for a month takes discipline, but once you know where your money is going, you are able to start making better decisions about where to allocate your funds. Do not make your budget too strict. It could be more difficult to keep a budget that has spending cut out of it.
Budgeting and saving
A budget that you keep can help you conserve money. You could be very wrong if it appears like you can’t spare any money to savings. Beginning with a small amount is what Ehow.com suggests. You’ll be amazed by how quickly even $20 a paycheck adds up. Keep in mind nickels and dimes add up to dollars. Making your own coffee or making your own lunch can conserve a lot. Conserve money from your regular check while taking a small side job like coaching or tutoring for spending money.
Late payments to be avoided
Late payments will cost you a lot of additional money. Some tips on avoiding late payments are given on the About.com website. An automatic bank payment with your banking account will be the best way to stay away from late payments. If you aren’t confident with your cash flow, don’t just leave your bills unopened. Set up your own due date a week before the actual payment is due, and write it on the calendar. Set up a free e-mail or cell phone reminder from creditors that offer them. Many companies may also let you rearrange the due dates better suited to your cash flow.
Cash advances can be used
Living expenditures shouldn’t require you to take out debt for them. A payday loan or online cash advance is a valuable service for emergencies like medical bills, car repairs and traffic tickets. But to finance lattes from Starbucks, the dress on sale you can’t live without or beers with the fellas after work, using personel loans and installment loan is a bad idea. With pay day loan, you need to never borrow more money you need for an emergency, and should pay it back on time.
Further reading
Bankrate.com
bankrate.com/finance/financial-literacy/secrets-to-creating-a-budget-1.aspx
Ehow.com
ehow.com/how_2205105_start-saving-money-have-none.html
About.com
personalorganizing.about.com/od/howtoorganizefinances/ht/bills_finances.htm
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