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How to deal with money
If you have any habits that threaten your financial well-being (from mindless and useless expenditures to late payment of bills) - this alarm. Below you will find expert advice that will determine how reasonable you handle money and help cope with the shortcomings, if you still show up.
1. You buy a daily takeaway ... as well as coffee and snacks
If you live or work in the city (or your daily route passes through five different cars cafe), then buy lunch takeaway seductively easy - and fraught with problems, if your habit begins to absorb the money that you would have planned to save on something else ... for example, on vacation in the Caribbean.
"There is nothing wrong with buying lunch or a snack on the go, - said the director of financial planning at LearnVest Planning Services Stephanie Kirkpatrick. - But when you put it more serious financial goals, it is one of the easiest ways to cut costs without serious damage to the quality of life ".
Of course, ideally it would be necessary to exclude all buy food at the last minute, but it does not always work. "If you are too hard to quickly abandon the wasteful habits, plan your budget and decide in advance how much you are going to spend - and then try to spend a little less than the amount indicated in the next month - recommends Kirkpatrick. - Be sure to allow yourself to indulge yourself obschepitovskie meal at least once a week, so if she likes you so, so as not to feel that you yourself something to deprive.
2. You pay for services you do not need
Of course, pay your bills on time - it's a good habit; but pay more than is necessary - not the best idea.
Need an example? Astronomical bills for cable TV with 300-plus channels of watch that you still do not have time. Here you are not alone: the average American account, such as for cable TV, including telephone and Internet services, is 128 dollars - three times more than 10 years ago.
"All expenses are divided into three types - says financial planner in LearnVest Planning Services Natalie Taylor. - The fact that you can control something that can be influenced, and that does not give any control or influence. Monthly payments belong to the second group, so use this fact to mind ".
"First, you can get acquainted with the site your provider to see what starting and special rates they offer now and whether there is room for maneuver on your rate".
3. You do not receive a priority payment of loans with the highest interest rate
Today, most people, anyway, have to pay at least through various loans - whether student, mortgage or credit card payments. But when there are free means to repay any of your debts ahead of time, the most productive strategy here is prioritization.
You have your debts in order of highest interest rate to lowest, and prioritize debt repayment - in the first place, trying to repay the loan with the highest interest rate and investing it in any available funds. Once it is paid off, you can go down the list to pay off the debt with the next highest rate.
"By focusing on only one payment of duty at a time (and at the same time, making the minimum payments on all other loans), you not only save money, but also over time, your budget will get additional flexibility - explains Taylor. - As the maturity of each debt you have to worry about getting one reason for less. You can continue to pay the same amount and on, but in any case there is more freedom of action, which is very nice ".
4. You keep credit card debt for a long time
While there is nothing wrong with that, to use a credit card when you can not pay the full amount as a whole, over time, unless you do not pay the debts on time, it starts to drip interest, which will be added to your debt.
"Pay off debts could be not an easy task. If you have several cards with receivable balances, select the one where the highest bid and pay her a priority, based on the principle of prioritizing, and implementing with the minimum payments on other cards. " If you have a good credit history, check out the suggestions on the cards with lower interest rates, which can temporarily lower the rate, when you carry the residue; but do not forget to take into account the additional fees charged for the transfer before accepting a particular proposal.
5. You pay for your vacation to the maximum
A trip to the south of France in July worth a fortune for the simple reason that the rest there in the summer everyone wants. But you can cut costs, having gone there not rush, and in the interim season, or in the months before the peak. The alternative - to go to a similar, but less expensive place.
"Compare the different places that offer you are interested in vacation, for example, beach vacation," - says financial planner LearnVest Planning Services Kathy Brewer. It also recommends that determine budget travel in advance and save money each month to to the correct time on your hands was required amount. "Brewer proposes to use these travel sites aggregators like Kayak and Orbitz, to compare the best day, week and month for travel to a specific location.
6. You are doing the most important savings on leftovers
Many of us have a bad habit to pay the first secondary accounts and petty debts, and only the remaining money set aside for such needs as an emergency fund, wedding, initial payment on a house or a trip abroad.
It seems we just can not grasp that saving money is really needed, otherwise our plans never materialize.
The solution to this problem lies in the following settings: "Pay yourself first." This can be accomplished by installing an automatic transfer of a certain amount from your paycheck to your savings account, or automatic transfer from your current checking account. You do not spend money that does not see and will probably be only too happy to rearrange your budget so that these savings continued to grow. "First you have to get used to - says Brewer - but you will feel much better when you see how your bill each month grows with minimal effort".
7. You are not paying their savings time systematically
This is great if you save for retirement and savings accounts - but it will be even better if you automate these contributions. Therefore, the principle of "do business - walk safely" will not work here.
As your goals and hopefully income, your savings should also be increased to meet these changes. "The gradual increase savings can dramatically affect your future, without exerting much influence on your current budget, - says Farnham. Fortunately, this is another habit that can be automated - set a reminder on your calendar to increase your contributions by at least 1% of income every six months.
8. You overpay for gifts, buying them at the last moment
December comes every year at the same time, so why did he always took us by surprise and makes shake out of the pockets of all the money to please the family?
Instead of making a list of gifts in the beginning of December, why not make a habit to do this in late December or early January the following year? Thus, you will have 12 months to ensure that take advantage of discounts, wait shares and avoid "raskoshelivaniya" at the last second.
In addition, advance planning can provide an additional advantage for your budget. "I often recommend that customers do calendar gifts for the whole year - says Derrick. - Noting all birthdays, anniversaries, important dates and holidays, as well as the usual amount of money you usually spend on each person, you better be aware of future costs. Then divide the total by 12. In the months when you do not need to buy gifts, you can delay means for a time when you have more than the usual budget ".
9. You forget about gift cards
You have become the proud owner of a gift certificate and forgot about it, until he came expire? You are not alone!
"For many gift cards and certificates mean" I do not know what you give, "but because in fact it's real money," - says Kirkpatrick. "Even if it is a card of a store where you do not go, you might buy it a gift for someone else".
Thus, instead of postponing its gift cards "for later", put them in your wallet or glove compartment of your car, to have them on hand when needed.
1. You buy a daily takeaway ... as well as coffee and snacks
If you live or work in the city (or your daily route passes through five different cars cafe), then buy lunch takeaway seductively easy - and fraught with problems, if your habit begins to absorb the money that you would have planned to save on something else ... for example, on vacation in the Caribbean.
"There is nothing wrong with buying lunch or a snack on the go, - said the director of financial planning at LearnVest Planning Services Stephanie Kirkpatrick. - But when you put it more serious financial goals, it is one of the easiest ways to cut costs without serious damage to the quality of life ".
Of course, ideally it would be necessary to exclude all buy food at the last minute, but it does not always work. "If you are too hard to quickly abandon the wasteful habits, plan your budget and decide in advance how much you are going to spend - and then try to spend a little less than the amount indicated in the next month - recommends Kirkpatrick. - Be sure to allow yourself to indulge yourself obschepitovskie meal at least once a week, so if she likes you so, so as not to feel that you yourself something to deprive.
2. You pay for services you do not need
Of course, pay your bills on time - it's a good habit; but pay more than is necessary - not the best idea.
Need an example? Astronomical bills for cable TV with 300-plus channels of watch that you still do not have time. Here you are not alone: the average American account, such as for cable TV, including telephone and Internet services, is 128 dollars - three times more than 10 years ago.
"All expenses are divided into three types - says financial planner in LearnVest Planning Services Natalie Taylor. - The fact that you can control something that can be influenced, and that does not give any control or influence. Monthly payments belong to the second group, so use this fact to mind ".
"First, you can get acquainted with the site your provider to see what starting and special rates they offer now and whether there is room for maneuver on your rate".
3. You do not receive a priority payment of loans with the highest interest rate
Today, most people, anyway, have to pay at least through various loans - whether student, mortgage or credit card payments. But when there are free means to repay any of your debts ahead of time, the most productive strategy here is prioritization.
You have your debts in order of highest interest rate to lowest, and prioritize debt repayment - in the first place, trying to repay the loan with the highest interest rate and investing it in any available funds. Once it is paid off, you can go down the list to pay off the debt with the next highest rate.
"By focusing on only one payment of duty at a time (and at the same time, making the minimum payments on all other loans), you not only save money, but also over time, your budget will get additional flexibility - explains Taylor. - As the maturity of each debt you have to worry about getting one reason for less. You can continue to pay the same amount and on, but in any case there is more freedom of action, which is very nice ".
4. You keep credit card debt for a long time
While there is nothing wrong with that, to use a credit card when you can not pay the full amount as a whole, over time, unless you do not pay the debts on time, it starts to drip interest, which will be added to your debt.
"Pay off debts could be not an easy task. If you have several cards with receivable balances, select the one where the highest bid and pay her a priority, based on the principle of prioritizing, and implementing with the minimum payments on other cards. " If you have a good credit history, check out the suggestions on the cards with lower interest rates, which can temporarily lower the rate, when you carry the residue; but do not forget to take into account the additional fees charged for the transfer before accepting a particular proposal.
5. You pay for your vacation to the maximum
A trip to the south of France in July worth a fortune for the simple reason that the rest there in the summer everyone wants. But you can cut costs, having gone there not rush, and in the interim season, or in the months before the peak. The alternative - to go to a similar, but less expensive place.
"Compare the different places that offer you are interested in vacation, for example, beach vacation," - says financial planner LearnVest Planning Services Kathy Brewer. It also recommends that determine budget travel in advance and save money each month to to the correct time on your hands was required amount. "Brewer proposes to use these travel sites aggregators like Kayak and Orbitz, to compare the best day, week and month for travel to a specific location.
6. You are doing the most important savings on leftovers
Many of us have a bad habit to pay the first secondary accounts and petty debts, and only the remaining money set aside for such needs as an emergency fund, wedding, initial payment on a house or a trip abroad.
It seems we just can not grasp that saving money is really needed, otherwise our plans never materialize.
The solution to this problem lies in the following settings: "Pay yourself first." This can be accomplished by installing an automatic transfer of a certain amount from your paycheck to your savings account, or automatic transfer from your current checking account. You do not spend money that does not see and will probably be only too happy to rearrange your budget so that these savings continued to grow. "First you have to get used to - says Brewer - but you will feel much better when you see how your bill each month grows with minimal effort".
7. You are not paying their savings time systematically
This is great if you save for retirement and savings accounts - but it will be even better if you automate these contributions. Therefore, the principle of "do business - walk safely" will not work here.
As your goals and hopefully income, your savings should also be increased to meet these changes. "The gradual increase savings can dramatically affect your future, without exerting much influence on your current budget, - says Farnham. Fortunately, this is another habit that can be automated - set a reminder on your calendar to increase your contributions by at least 1% of income every six months.
8. You overpay for gifts, buying them at the last moment
December comes every year at the same time, so why did he always took us by surprise and makes shake out of the pockets of all the money to please the family?
Instead of making a list of gifts in the beginning of December, why not make a habit to do this in late December or early January the following year? Thus, you will have 12 months to ensure that take advantage of discounts, wait shares and avoid "raskoshelivaniya" at the last second.
In addition, advance planning can provide an additional advantage for your budget. "I often recommend that customers do calendar gifts for the whole year - says Derrick. - Noting all birthdays, anniversaries, important dates and holidays, as well as the usual amount of money you usually spend on each person, you better be aware of future costs. Then divide the total by 12. In the months when you do not need to buy gifts, you can delay means for a time when you have more than the usual budget ".
9. You forget about gift cards
You have become the proud owner of a gift certificate and forgot about it, until he came expire? You are not alone!
"For many gift cards and certificates mean" I do not know what you give, "but because in fact it's real money," - says Kirkpatrick. "Even if it is a card of a store where you do not go, you might buy it a gift for someone else".
Thus, instead of postponing its gift cards "for later", put them in your wallet or glove compartment of your car, to have them on hand when needed.
