Thursday, December 26, 2013

First Step to Stop Making Money Mistakes – Stay out of Debt.

By Keith Gilabert

I get a lot requests from young people, on how to grow wealth.  When you are first starting out, it is often tempting to just splurge on meaningless items. As opposed to doing this, be responsible in managing your finances in order to stay out of debt.  If you can’t buy it cash, then don’t buy it.
One of the strategies I employ is separating my finances.  Open a few checking accounts so that you can stay within your budget. Use your primary account to pay your necessary expenses and use your secondary account for optional expenses. Separating your necessary from your extraordinary expenses might help you learn how to manage your finances.

Be sure that you view your credit report from time to time. You are entitled to a free credit report every 12 months, and there are other ways to monitor it for little to no cost. Check your credit yourself at least twice in a year so you can ensure that you have not been a victim of identity theft.  I had a friend who owned a car for 2 years without knowing it.  Be careful with your personal information.
Buying a car is definitely one of the biggest and most important purchases you will ever make. Comparison shopping with all of the different retailers available to you is the best way to make sure you get a good price on a car. Don't forget to look on the Internet.  An excellent source is, this site gives you  the wholesale cost of an automobile and you can use that as your negotiating point.

Always allocate a cash budget,  you can avoid splurging and spending your savings. You can use your cash allowance to reward yourself in whatever way you want, but you can't spend more than your allowance. This way you can reward and treat yourself on a consistent basis without damaging your overall budget.  STAY


Take a little money out of each of your pay checks and put it into savings. If your plan is to save the money you have leftover once the month is over, chances are, you won't have any left. Since the money is not available, it will make it simpler to stick to your budget.
If your money is gone once your bills are paid, you may want to find a way to cut back on certain novelties. You may not be able to entirely give up eating out, but you can at least make it less frequent. By eliminating half of your meals out each month, you can still have fun while saving money.

Let your investments do some international travel. The easy way to add foreign investments is through various no-load mutual funds, which handles the research and diversification for you.
If you find yourself with a surplus at the end of the month put the money you have left over into savings instead of wasting it on something unnecessary. Try sticking to your budget and not allowing harm to come to your finances again.

When you control the flow of your money, you automatically control your property. Track the value of your home, and look at your home as a long term investment. Make certain to have a solid budget in mind and stick to it.

Avoid being overwhelmed with debt by paying unpaid bills every month, by making a shopping list and a budget of how you should spend your money. Put the advice from this article into use and you will find your finances will get on track and stay there.

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