When you are new at doing your personal finance stuff yourself, you need to learn a lot of things and know how to manage your personal finance yourself. It’s better if you start managing your personal finance at a very young age, this will give you better experience. There are many of the things included in managing your personal finance like budgeting, planning your income and expenses and even managing to save at the end of the month. For being a pro in managing your personal finance, you need to educate yourself regarding managing your personal finance but there is no education for this. You need to learn managing your personal finance from the experience and gradually improve your personal finance accordingly. Try and gather every knowledge about managing your personal finance from those who are pro at it. Here are some of the tips to manage your personal finance like a pro.
Schedule weekly money dates
You generally manage your personal finance monthly, but actually you need to do it weekly. It’s good to start something for small period, understand it properly and then take it for long term. Managing your personal finance for a week will give you exact idea about how when and where you spend and how you need to control it. Spend an hour every week to manage your personal finance, plan out your finance for your whole week and follow your plan properly. Many people want to become rich but they don’t want to contribute their time in planning how to become rich. If you want to achieve something you have to plan for it and follow that plan and then you can achieve that thing. Just thinking will not help you reach anywhere. You think that planning out and managing your personal finance is a serious and boring matter and thus you always run away from it but you can make it fun by listening to music or even lighting candles and planning it. Spending just an hour in a week is of course easy for you to manage your personal finance.
Try to spend 20 minutes in a week to read
Don’t make the process of managing your personal finance super speedy. Don’t try to learn everything at once, take your time and learn everything slowly and gradually. Break your financial education in several breaks or parts; it will help you learn more efficiently. Spend 20 minutes in a week for financial education. Read about personal finance and matters related to it or any interviews about of knowledgeable person about personal finance. It is easily possible to devote just 20 minutes in a week for it.
Talking to various persons who are expert in this field can also help you learn many things. When you look up to some person and get motivation from him, you can definitely approach that person and know this tricks and tips and his own experiences for managing personal finance.
When you are dealing with bank transactions, you must need a proper bank account which suits your needs and demands. There are various types of bank accounts, some of them you might be aware of while some of them you might not be. But it’s better to have knowledge of types of bank account as you can use the one which you find most suitable giving higher rate of interest and charging you less. There are different types of bank accounts for people of different age as if you are a student then there will be different types of bank accounts for you, if you are a person above 60 then there will be different types of bank accounts, thus it depends upon your needs and usage as to which types of bank accounts you want to opt for. Choose types of bank accounts which do not restrict you from doing any kind of activity. Here are some of the types of bank accounts.
It is the most common types of bank accounts and most of people have savings account. This account is a nice way to save money. These types of bank accounts allow you to deposit money and make withdrawals but it generally doesn’t allow you to write checks. The interest rate of savings account is low, it is probably higher than checking account but it is lower than money market accounts. In certain types of savings account there is passbook where in transactions are logged in a small booklet which keeps the record of your each and every transactions. There are several savings account which usually charge the fees if balance falls the specific minimum level.
Basic checking account is also known as the no frills account. These types of account offers limited services with really low cost. You can do basic banking work with such accounts but you cannot have benefits and facilities of more comprehensive accounts. These types of accounts generally don’t pay interest and they also restrict you from having much activity and also impose fees if you do so. For example fees will be charged if you write more than certain number of checks per month.
Interest bearing checking account
As compared to checking account, these types of bank accounts offer you with more types of services and facilities but they generally charge higher. Here you are free to write as many checks as you want, you are not restricted to specific number of checks. Checking account which avails you with interest are referred to as negotiable order of withdrawal accounts. The rate of interest generally depends upon the higher balance in your account and most of these accounts charge a monthly service fee if the balance of your account goes below a certain specific level. Thus here you get higher services and benefits with higher fees.
Unplanned loans, fall in income etc contribute to the problem of payment of debts.
There are many options left before a person files bankruptcy .A few alternatives to filing bankruptcy are as follows:-
• Selling out old car
• Renting out rooms in our guest house and earn some money for payment of dues
• Selling share equities which we own
• Finding work which can be done after our office hours are over and get paid for it.
• Surrendering insurance policies to get cash for payment of dues
• Selling out our home and staying in a rented place
• Take loan from our family friend or relative on a condition of payment on a future date
• Cash out refinance is also a good option, here the homeowner mortgages his house at a higher value than previous mortgage and uses the extra money to pay out his debt
Finally, the last option which remains is selling the jewelry of the house