Keep Everything in Check With Your Personal Finance

"Keep Everything in Check With Your Personal Finance" by Jon J Nestorovic

Personal financing involves the sets of decision-making of an individual or a family unit which may include credit cards and consumer loans, checking and savings accounts, retirement plans, investments in the stock market, insurance policies, social security benefits, and income tax management. It is already common knowledge that people know (or at least should know) how to spend their money efficiently in order to maximize the benefits and still keep an apportioned amount as savings money.

Unfortunately some circumstances in life tend to make them overspend and eventually end up in debt.

That is some serious money management problem there! So in case you're not sure what to buy or how to spend your money, try these few tips out.

1. Do not spend beyond your means - the first mistake people make in managing their money is that they overspend it. So remember this, money management 101: keep your maximum expenditures to less than 80% (the ideal number is 65%) of your budget and keep the rest for emergency purposes.

2. Don't jump out of your budget fence - actually this second tip is very similar to the first one. But did you know why we mentioned it again? That's because we put an emphasis on this subject and we want you to save money instead of overspending it.

3. Pay your credit card balances - this is exactly the reason why you end up in debt, and with too many credit cards the temptation of just buying anything you want will just circle in your head. So keep track of the number of credit cards you have and the outstanding balances you've got on each of them.

4. Pay for your retirement plan - paying your retirement plan contribution wouldn't hurt you, you know. Just think about it, when you'll be 60 years old you won't be able to get a job and if you have no family to look out for you then you won't be living an easy life for sure, especially one without any retirement benefits.

5. Have a savings account - aside from having a retirement or a pension plan, it would be good to have a sufficient savings account too!

6. Get into business - if you have saved enough money try to spend some of it in something that you can make profits out of - business or the stock market. Foreign exchange trading has now been made easy and cheaply some online Forex trading companies will do you in for just $100.

7. Take advantage of your employment benefits

8. Evaluate your insurance coverage - check the insurance plans you're paying for and make sure that you're not paying for something more than you need to.

9. Write and update your last will - protect the rights of your family and write your last will and update it constantly. You could have purchased a new car and you didn't mention it in your will and they might lose it instead of inheriting it.

10. Keep good records - ensure that you keep all your receipts and other records of expenditures so that you won't get into trouble finding them when tax season comes. Or better yet just hire an accounting firm to handle this for you and that is of course if you earn big and you've got spare money to do it.