Money tips

Saving and use of money wisely requires one to be financial disciplined. It does not mean you need a degree in financial studies but rather understanding of how to power yourself to control the flow of your money. In this posts, I will give you number of tips that can help anyone gain the financial freedom he/she deserves.

US one dollar ($1) bills

The order of the tips below is not particular to anyone’s financial situation. Some tips may be too obvious to some but not to all the readers.

• On a monthly basis, save whatever money remains after paying all the expenses. Save as often as possible, not just one day of a month but everyday!
• Set financial goals and manage your money wisely
• Pay more than minimum payment to high interest creditors
• Keep an emergency fund in case of job layoffs. The fund should be sufficient enough to cover your living expenses for the duration of the emergency. Having some money saved for rainy days is better than having no money saved at all for those days!
• In financial troubles (such as your expenses exceed your income), employ these strategies:
  • Increase your income
  • Decrease your expenses
  • Do a combination of the two above
• Make a record of your each financial transaction (especially when money leaves your hands or bank accounts). This will provide not only a historical record of where the money went but may also help you avoid unnecessary expenses as you have to document it.
• Pay bills on time to avoid any late fees or extra accrued interest
• Plan ahead for large expenses
• Do comparison shopping for the purchase of most items
• If possible, use credit cards only when you have the money in your bank to cover the charges of your purchases. Don't forget to pay use that money to pay for the credit card bill, not something else.
• Balance your checkbook every month