Personal finance can be easily managed, and savings can be built up by following a strict budget. One problem is that most people live beyond their means and do not save money regularly. In addition, with surprise bills that pop up for car repair or other unexpected occurrences an emergency fund is essential.
Listen to logic, not emotion; keep calm and avoid making decisions due to panic or excessive excitement. Starting with small accounts can make it easier to keep emotions in check. If you keep your cool when making decisions, you will have an easier time following your initial plan consistently and meeting the goals you set for yourself.
To understand how you spend money, keep a journal listing every cent you spend for one week. However, if you write it in a notebook that gets closed and set aside until you open it again the next day, it might become a case of “out of sight, out of mind”. A better choice may be writing your purchases on a poster or whiteboard that can be placed in a prominent place to catch your attention daily. You will pass by it all day so it stays in your mind.
Be frugal with your personal finance. While having a brand new car sounds tempting, as soon as you drive it off the lot it loses a huge amount of value. Often times you can get a used car in good if not better condition for a much lower price. You will save big and still have a great car.
Balance your checkbook with a friend. Just as in all things, accountability can have its perks. You are less likely to overspend or make rash purchases you can’t really afford if you have to explain that purchase to someone else later. Make a pact with a friend to keep each other accountable and watch your savings grow.
To teach your child personal finance, take them with you to the grocery store. Many children take the food they eat every day for granted. If they see how much simple items cost at the store, they are more likely to appreciate not only the food on their table, but also how much you have to work for money.
There are a lot of electronic expenses that you will have to pay for during the month. One tip that you can follow is to merge your internet, phone, and cable into one payment plan. There are many providers that offer discounts if you join their company for all three services.
After you finish a meal with your family, do not throw away the leftovers. Instead, wrap these up and use this food as part of a meal the next day or as a snack during the night. Conserving every piece of food is very important in reducing your grocery costs each month.
Make sure you have at least six months worth of savings in case of job loss, injury, disability, or illness. You can never be too prepared for any of these situations should they arise. Furthermore, keep in mind that emergency funds and savings must be contributed to regularly for them to grow.