The Keys To Remember

Start saving as soon as possible

savingsIts one thing to just scoot by paycheck to paycheck, but establishing you savings at a young age is the first step to managing your financial status.

Know who you owe and how much you owe them
You should never forget about any line of credit you have open. If you have an open line of credit in good standing and want to close it, make sure the creditor is aware that you are closing the line of credit. At customers can easily negotiate for the fees and payment deadlines. Hidden fees are an unfortunate reality and you may be charged for inactivity. If you have a line of credit that is in not so good standing, close that line of credit and continue making payments until it is paid off.

Communication is necessary
If you have to miss a payment make sure your communicating with the creditor. In most situations creditors will work with you, if only for the purpose of collecting money that is owed to them. Understanding that the are humans too will make it easier for them be identifiable and will make a creditor more willing to work out deals with you.

Know your limits
One of the biggest mistakes people make is buying what they want instead of what they need. A Ferrari is a nice car, but if your flipping burgers at McDonald’s you probably shouldn’t be buying one. Living above your means doesn’t make you look rich, it makes you look childish. And people will know if you are living above your means.

Avoid the wrong loans
Taking out loans is something that can’t be avoided anymore. You want to keep in mind though that the loan you take out should serve a specific purpose. Loans are a financial legally binding contract, and with any contract it is important to know what the terms are and a very good idea to negotiate those terms to not ruin your life.

planning personal financeStay on budget
Know how much money you make, and never spend more then that. Your life is going to be no fun at all if your making a few hundred dollars a month and trying to pay bills adding up to a few thousand dollars a month.

Always have a plan
Seems like a simple thing, but this proves to be more difficult. Never go off half-cocked on a spending spree. When taking on debt, know exactly what you plan on buying before you take on the debt. Have a plan in place on paying back the debt. Know how long you can go without work if you should lose your job, or if you need to buy a new car. Take into account anything that would make it hard to pay back the debt.