Some important tips to remember
- It’s important to pay attention to your household finances, even if you are not the partner who is “good with money”. Many people get into trouble because their partner may be accumulating debt secretly, or after a divorce or death of a partner when they have no idea where the money is and are inexperienced with keeping financial records.
- No matter how well you may be doing, never ever forget to save! A lot of people continue to upgrade their lifestyle as they earn more money instead of increasing their savings. We have all heard about Enron and WorldCom, layoffs in major industries, and people who are burdened with huge medical bills, so we all know the importance of savings and emergency funds.
- Avoid frivolous purchases on a credit card. If you need to make a large purchase, start saving for it before you put it on credit. That way, you can pay most or the entire bill when it arrives, instead of adding hundreds or even thousands of dollars in interest to your cost.
- If you see yourself starting to get into trouble, make changes right away. Debt tends to accumulate faster and faster and can get out of control before you know it.
- It’s important to keep a track of your daily expenses. Even the little ones like a cup of coffee or parking fees at the beach. You will be amazed by how much those small expenses add up. And once you know exactly where the money is going, you can figure out where to cut back.
- Try calling your credit card issuers and request an interest rate reduction. Most consumers are unaware that a simple phone call can save them money on their interest payments.
- Study after study shows that people who make most or all of their purchases with cash spend less money. If this seems like an impossible task, try using cash for one expense that you always use the credit card for, and add on from there.