The Big Problem
One problem unites us all; emergency financial needs. When we are struck by an urgentfinancial need, one that our paycheck cannot cover, we end up borrowing money. Fortunately, many people are able to make timely payments and avoid debt. Unfortunately, the majority of borrowers are unable to do so. The interest keeps piling up and the debt keeps rising.
Until you pay back that payday or bank loan, you are stuck in debt. Considering the life that most of us live, paying back the debt can take many years, even with a low interest rate. You need to gain a lot of self control and incorporate plenty of good personal financial habits
Track your Expenses
One of the most important things you can do is track your expenses. Of course, this doesn’t mean that you keep a track of every dollar but all the medium to large purchases. In other words, anything over $10. It is a good idea to keep a track of your petrol consumption as well; even if you fill $5 a day.
Don’t Overspend
One of the worst things you can do is overspend your money, even if it is on gifts. One of the biggest extra expenses we have is gifts. When you buy someone a gift, you want to buy them something extravagant. However, that does not mean you spend an entire month’s paycheck on it.
Mortgage Payments and Refinancing
Always keep an eye on the interest rates. If they fall significantly, refinancing your home may be a great idea, especially if you have a decent amount of equity.
Impulse Buying
Impulse buying is one of the biggest plagues on your paycheck. If you see a computer being sold at half price, you will probably buy it, even though you don’t need it. Impulse buying can easily drain your entire savings; avoid it! One great way to overcome impulse buying is by creating a following a shopping list.
Throw Away the Plastic Cards
If you have a problem with credit card debt, do not cancel your credit cards as that will significantly damage your credit score. Instead, have someone hide them so you can’t use them. If that does not work, simply cut up your credit cards. When it is cut, it can’t be used and you can’t rack up your debt.
Save More by Keeping Less in your Wallet
When you have money in your wallet, you will not hesitate to buy something. However, when you do not have a lot in your wallet, you will not be able to make big purchases.
Emergency Fund
It is always a good idea to have an emergency fund at hand. This could be a separate bank account, trading account, stocks or even bonds. If you keep an emergency fund, you will never be forced to take a loan when you encounter a financial emergency. In short, you will never be in debt.
Read your Contracts with a Fine Comb
Most people are intimidated by the length of their contracts. Instead of reading the entire contract, they choose to trust the other party and sign. However, there could be unjust clauses in your contract that could easily be changed. Therefore, always read every line of your contracts.
Budget Wisely
When your paycheck arrives, always sit down and budget it. Although it may take you an hour to do so, it will save you a lot of money every day.
All the above tips are all small and easy tips to follow. By incorporating a few good financialhabits, you will never be in debt. Read more on debt settlement here.
Author Bio: The above article is composed and edited by Donna B. She is associated with many social media, finance and technology communities and is a freelance writer and adviser. In her free time she writes articles related to finance, loan, dongle, internet technology, mobile applications etc.
Vijayraj Reddy
Recruiting right talent for your company isn't easy. It requires lot of time and efforts to invite applications for a new job opening and eventually selecting the best candidate for the job. By using some online recruitment system, you can possibly save plenty of time and money, that goes in complete recruitment process and make HR efforts far more efficient.
