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10 Steps to Improve Your Financial Situation
by Gregory Thomas
Your credit is important, whether or not you ever use it to purchase things, it tells anyone who looks at it how you handle your finances. Here are ten tips you can use to help improve your
personal financial situation and inevitably save more money:
1. Pay Yourself Weekly
This may seem a bit odd, but this is an excellent way to start building
a substantial savings. On a weekly basis, pay yourself $25-$50 and
immediately put it in a safe place. You can even open a special savings
account where this weekly "payday" can by placed to help minimize or
eliminate impulsive spending. Think about it this way, if you paid yourself
$25 a week, in two years you'll have accumulated $2600 (not including
interest)! That's almost $3000 from just putting $25 aside every
week. Take advantage of this money-saving opportunity. Simple, yet
very effective.
2. Don't Shop
For those of you that love to shop, you may find that this is one tip that
could save you hundreds, maybe even thousands every year. Start using
the "Need or Want" strategy. Before you spend a single dollar on anything,
ask yourself, "Do I really NEED this item, or do I just WANT it?" You may
find that many of the items we purchase, we do so just because it
"caught our eye" or it was "an impulse buy" or "my friend bought the same
thing". All these excuses just add up to wasteful spending. You can
probably get by without another sweater, or a new pair of jeans, so just
buy what you absolutely need, and pass on those items that aren't
necessities.
3. Use Your Bank's Own ATMs
Some banks will charge you money for using other ATM machines. Even
though you will be able to withdraw money using your ATM/debit card
from literally any machine, banks will charge you $2 (generally) for using
a machine other than theirs, in addition to a standard $1.50 charge the
machine charges for its use. In other words, if you use the ATM at your
local
7-11 to take out $20, you'll most likely end up paying $3.50 in additional
charges! If you do that 5 times a month, you'll lose $17.50 for that month,
or
$210 per year. What a waste! Try and stick with your own bank's ATMs
whenever possible.
4. Track Your Spending
Take the time to track your spending habits for one week. Take note of
every single dollar you spend, even those sodas and candy bars purchased
here and there. This will give you a "birds-eye" view of exactly where your
money is being spent, thus allowing you to refine your spending habits to
essentially save more money.
5. Lower Credit Card Balances
Another very important tip that many often overlook. Pay off those pesky
credit cards as soon as possible because you are losing up to 21% of the
total. What a waste of your hard earned money! Keep chopping away at the
balances until you get to an amount that is reasonable $100-$500 dollars.
6. Use Your Debit Card Instead of Credit Cards
Get in the habit of using your debit card instead of your credit cards.
For the most part, debit cards are accepted anywhere a credit card is
accepted, however as you know, with a debit card the amount is taken
directly
from your checking account whereas credit card usage is billed at a later
date
(along with a hefty interest rate).
7. Changing Jobs? Roll-Over that 401(k)
When people change jobs/careers they will be faced with a decision to
either "rollover" their 401k (retirement plan) or to withdraw it. It will be
ever
so tempting to withdraw the money since it will be a substantial amount, but
don't! You will be charged fines and penalties for an early withdrawal that
will
cut YOUR total by 40%-60%! That's like giving half of your earned retirement
savings away to a stranger. Why would you do that? Even though you may
want the money now, resist the temptation and roll it over. It will be well
worth
it in the long run.
8. Avoid Getting Too Many Credit Cards
Why have eight credit cards? That's just going to provide you with more
opportunities to go further into debt. It's fine to keep 1-3 cards to build
credit, establish yourself, and for emergencies, but credit cards are
double-edged swords. They can help or hurt you depending on your
self-control.
9. Check Your Credit Score/Report
It's important to know where you currently stand as a consumer and since
your credit report is the most important historical list of your financial
past
and present, it's a very good idea to check it from time to time. There are
a number of places where you can get your credit report, however the most
detailed compares information from the top three national credit bureaus:
Experian, Equifax, and TransUnion. Once you get your report, look through
it carefully to see if all the information is accurate. If there are any
discrepancies, get those solved as quickly as possible to improve your
credit rating - a score of up to 900. Often times, consumers are unaware of
unsettled accounts, or accounts that are still open/active when they should
be closed. Pay close attention to this when inspecting your report.
10. Finally: Review - Revise - Retry
Once you start implementing these tips and become more familiar with the
money saving opportunities you have, take the time to REVIEW your progress.
Check and see where it may be possible to REVISE some of your techniques
or where you can implement new ones. Once you have revised your plan,
RETRY to see if your results improve. The more frequent you review, revise,
and retry your saving ideas, the more "in tune" you'll be with your finances
and
spending habits, and learn what works and what doesn't for you.
Related Articles
Canceling a Credit Card
Get Ready, How to Get Started on a Budget
Budgeting When Your Paycheck Varies
More Finance Advice
From Our Friends:
Credit report tips, hints, and instant access - (Saving Secrets)
A "Lost" Retirement Plan - (Dollar Stretcher)
About the Author:
Copyright 2006 -- Saving Secrets Get immediate access to effective money-saving articles and even a free
monthly newsletter and downloadable ebook directly at their website!
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