Title Personal Finance – Plan, Reduce, Maintain
Personal finance should be a plan that outlines your
strategy for making, spending and investing your monies. Investing will be a
variable depending on your monetary situation. Paying your expenses as they
arise and not having a personal finance plan most likely will leave you short
of money before your next paycheck. A plan that is tracked and reviewed on a
regular basis will help you avoid and protect against financial hardships. It
is a good idea to form long term goals for your finances once you have
established and implemented your initial plan.
Personal Finance Plan
Tip 1 (Plan) – It is a good idea to get a notebook and track your income,
bills and living expenses daily. The first item you will enter at the top of
the page is your total income for the week, bi-weekly or monthly depending on
how you earn your income. You will then list your expenses underneath your
income subtracting out those items from your total income. List your income and
expenses by date. This will give you an
idea of how much money you spend as opposed to the monies you take in for a
period of time. If you find that your expenses exceed your income it will help
you decide more systematically which expenses can be reduced or eliminated.
Review your expenses on a regular basis to evaluate which ones may be reduced
or eliminated. Make sure you enter any bills paid as they are paid. This is key
to improving your personal finances.
Personal Finance Tip
2 (Reduce) – Review your plan periodically and you will find that you may
be able to reduce expenses by eliminating non- essential costs. You may also
reduce your costs by using coupons when you do your food shopping as well as
other items of needed. You may want to look for cheaper plans for your cell
phone, cable services and internet services to assist in reducing costs.
Shopping around for gas stations that sell gas cheaper may be something to help
reduce costs. When purchasing any item you should always ask yourself “ do I
really need that?” If it’s not essential you may want to eliminate that
expense. You may also consider eliminating eating out often, massages and
fitness programs on a temporary basis to help improve your personal finances.
Review your debt owed and number the least of the debt to the highest of your
debt sequentially. Set up a plan to pay off the lowest debt first by paying
more towards that debt while pay the minimums amounts on the others. This will
help improve your personal finances steadily overtime.
Personal Finance Plan
Tip 3 (Maintain)- Review your plan on a regular basis and make sure to
maintain your cost saving items. This will eventually improve your personal
finances. Eventually you will have more to spend on the luxuries you eliminated
and will enjoy a better financial situation.
You may want to check
these sites out:
www.intacct.com –free
accounting software guide and know your options
www.ehow.com –personal finances
www.personalcapital.com
–complete money management for the next generation investors.
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