Categories
Money Saving Tips

Your Personal Finance Guide: 12 Simple Tips To Save Money

Looking for a way to upgrade your finances?

It’s possible for anyone to give a new turn to their financial journey by making the right move in the right direction. All you need to do is take the right step by following a few simple tips to save money. Sometimes, the hardest thing to do is take the first step towards your financial journey. We share with you 50 simple yet effective tips to save money and churn the wheel of your financial journey. Few tips would just take minutes to implement and few would take weeks. You can choose what you feel can be followed immediately and gradually increase the count. To get started, go through the list and follow the 12tips to save money. Create your own personal finance guide and add these12 tips to get started. Although, initially the difference would be small but with time you will be able to see a huge change in your financial journey. Remember perseverance is the key to success.

Let us understand the 12tips to save money and how it can help you in your overall financial journey.

12 simple tips to save money:

1. The shopping rule: make a list before you shop

Making a list of items to buy before you enter a supermarket will help in preventing impulsive buying. It will also help you in keeping track of things you buy and also help to look for alternatives.

2. Heard about the 30-day rule?

Always buy an item you desire after 30 days. When you do that, you will either not buy the item or the desire to buy that item would have subsided. This will help you in saving a lot of money and savings.

3. Sell that unwanted stuff.

Always sell the items which you don’t use it for more than a few months. It will help you by providing additional cash either to spend or save.

4. Switch to a different bank and earn more interest.

You don’t have to live with high interests for your loans when you make regular payments. There are banks which help you in transferring your existing loans with lesser interests. This will help you in saving valuable money lost in high interests.

5. Enjoy the benefits of all customer reward programs

Only buy what you can use. When you feel something is really important to buy look for various customer reward programs which provide good benefits for the items you buy. These programs will help you in making a buying plan for the future.

6. Enjoy a TV-free life.

Television has become essential in everybody’s life. By not watching TV you are not only saving your electricity bill but will also think of other ways of making money such as side business and other investment plans.

7. Become a gift maker.

Everybody loves to feel special. When you make an effort to create useful gifts for your friends, it will be appreciated and you will also save money on buying unnecessary gifts.

8. Host a “house party”.

Partying reduces your stress. Party should never become a reason for your stress. The amount you spend in a party can take a toll both on your food budget as well as on the savings. Instead, host a house party and prepare all the things if possible, this will help you saving money for useful expenditures

9. Clothes stitched can be handy.

This is one of the useful tips to save money. Don’t throw your pant just for a small hole, or a shirt for a lost button; instead, stitch the button and patch the hole so that you reuse it during your crunchy times.

10. No big budget entertainments.

Making entertainment plans for the kids is always important. But that plan should not take a chunk of your life savings. Find creative to entertain the kids, use items which will kindle their creativity and not their pockets.

11. Game what you can master.

Being video game savvy is good. Only buy games which you can master and which has a high resale value. Always buy another game when the first game is completely conquered.

12. Quench your thirst.

Drinking water is always good for health. But drinking a glass of water before every meal will not only help you to stay full for a longer period of time but will also help in consuming less food. This will help you in saving a precious amount of money in your food budget and also in maximizing your life savings.

Summing up:

The above tips will help you in saving precious money which can be used on your lifetime savings. This money saved can be used for making investments which will help in increasing your standard of living.

Categories
Debt Management

Ways to Get Out of Debts

Panic-stricken faces, reluctance to spend even on essential commodities, high stress, and pressure levels, getting annoyed even at the slightest chance are not just signs of depression but also of a person in deep debts. Well, the way out of it very simple pay them all.

The happiness of a person paying the last installment of his loan is equivalent to that of a person who has become a father. You feel your shoulders light and mind stress-free. Imagine what will be your state of mind when you have to get into another loan to manage an urgent need? This will be a nightmare and depressing experience. So if I tell you that, there is a way to get out of debts and continue to be the same for the rest of your life, won’t you be related?

Here are five ways to get out of debts

1. Plan your savings

I start with the most sort after and preferred solution to get out of debts, savings plans. Well, this is the easiest way to get out of debts. Using your money from savings to spend on life events and emergencies instead of taking a chunk from your monthly paycheque. There are a lot of short term and long term investment plans available for you to scrutinize and embark on. Once you decide on the plan, decide on the savings and then proceed to save it on a monthly basis.

Discipline is very important when you start your savings plan, no matter what the amount allocated for the savings should not be used for any other purposes. The amount saved should be used only for your goal when you can save from those savings to start the cycle again to earn better monetary benefits.

2. Record your mistakes

Nobody likes to time travel to visit the mistakes made in life. But I am not going to ask you to time travel but create a documentary about various financial mistakes you have made or make an entry into your diary whenever you make a mistake. This will help you in two ways:

1. It will protect you from committing the same mistake twice.

2. It can also be used to bail you out of precarious situations simply to help you in finding a way to get out of debt troubles.

3. Secondary income

The best way to increase your cash flow and to save more money is to create a source of secondary income. Choose your secondary income source based on your passion. For example, if you are passionate about writing, then you can choose content development, article writing as a secondary profession. Writing can be done from home and it will also quench your passion. It will also help you as a stress buster and when money starts to come in from the secondary income you can breathe a lot easier than you were before.

When you choose a secondary income source, make sure it is not stressful and laborious. You already have your primary job to get stressed and overwork. So take a lot of care when you choose your secondary income source.

4. Invest your way to the top

A business needs assets to increase its valuation similarly a person needs investments to increase his standard of living. Right investment at the right time in the right place will yield you right results. The easiest way out of debts is to climb the ladder of investments. Plan your investment mix correctly. Investments to aid you during your retirements should be the first and foremost investment you make.

DCA provides a lot of investments, 529 plan which is tax-free can also be chosen to make investments. These may come to your aid when you need them to.

5. Battle against boredom

A study says people tend to spend more when you are bored. The best way to put it is

“An ideal mind is a devil’s workshop”

It is always better to keep yourself engaged in some activities. When can you be active by paying the least amount of fees why not? You tend to splurge money when you a bored and you start to purchase something to kill time. For example, you may decide to purchase Xbox to kill time until your girl returns from work. Instead, you can choose activities like jogging, badminton which are comparatively cheap to kill your time. You can enjoy the twin benefits of fitness and stress relief.

Summing up:

To live with or without a debt is in your hands. It is always better to live a life without any financial burden. This is life without a financial burden is not impossible but is possible with little planning and wise decisions. Decisions for a lifetime after all we are not going to be working all our lives when we decide to hang our boots make sure you hang it with pride and without any regrets.

Categories
Credit

Why It Is Important To Know Your Credit Score?

In today’s busy world, where everything is available online- be it shopping, booking a movie, looking for property etc. The payment is easily made by just swiping your credit card. But there’s something which most of us neglect, to know your credit score.

So, what’s the big deal and how do things change by knowing the credit score?

This is what you might be thinking. However, knowing your credit score can benefit you in various ways. Swiping your card is the easiest thing to do. But every time you swipe your card, your credit score changes. Every change in your credit score can significantly change your decisions. Before you know the benefits of a good credit score, you must know what credit score is and how is it calculated.

What is a credit score and how is it calculated?

A credit score is a statistical number that defines your creditworthiness. A credit score is the distilled version of your credit report. It is a 3 digit number which is calculated using complex formulas. The credit score ranges from 300 to 850. A high score represents that the person is financially trustworthy.

The factors involved in calculating the credit score are:

• Your payment history

• The length of your credit history

• The number of accounts you have

• The types of accounts you have

• Your used credit vs your available credit

In short, your credit score not only shows how well you manage your debts but opens up to a wide range of benefits.

So, let’s understand why it is important to know your credit score.

4 Reasons to know your credit score:

1. Your credit score gives the clear report of personal financial health

Do you know your credit score?

You can get the clear report of your overall personal financial health just by analyzing your credit score. If your credit score is:

• Low credit score implies: That you have more debts which you can’t comfortable handle. Also, it implies having too many credit cards at once.

• High credit score implies: You have handled your debts well and you clear debts on time.

Every change in your credit score gives you the idea of your changing financial situation. So, it’s essential to do credit monitoring once every month to keep a check on your personal financial health.

Check your credit score now to see know the status of your personal financial health. You can know your credit score online through multiple sources.

2. Your credit score helps you to protect yourself from frauds

You can check your financial situation by analyzing your credit history and credit report. Your credit score can show if you’re financially vulnerable from the way you handle your finances. Every late payment you make or having lots of credit, all this will be visible in your low credit score. If you’re among the people who never miss out any bill, do on-time payment, have zero debt and a small handful of credit cards then, your credit score will automatically be high. Additionally, the credit score helps you to protect yourself from frauds.

How will you know if your credit card is being misused by someone else?

In this tech-savvy era, anyone can easily misuse your credit card just by knowing your credit card number and other particulars. Credit card frauds both online and offline have become a common threat these days. So, it’s very important to be cautious when it comes to managing your credit card.

Fraudsters can buy new credit cards on your name if they know your SSN. Because of such events, your credit score can take a slide down. So, it is very essential to know your credit score and monitor every small change that happens. If you feel there’s some change in your credit score which you feel suspicious then check with your credit card provider immediately.

3. Your credit score will fetch you a discount for life

Having a good credit score can easily get money from credits or bank at good interest rates. Not only that you can enjoy benefits such as a loan with low interest rates, get approved for a mortgage loan, extra competitive for a new job or rental property etc.

4. Your credit score shows how you can mold your finances to a better shape

Your credit score can point out mistakes and act like a coach by showing a way for better financial management. Act according to the way your credit score recommends to mold your financial future to a better shape.

Summing up:

Hope you would have understood the importance of knowing your credit score. Start evaluating how you can avail of the benefits of your credit score. Also, if you feel your credit score is low then look for ways to improve it.