Becoming educated on finances is important for most aspects of life. Past generations learned how to save as much money as they could. Sadly, as a society, we don’t live that way anymore. Using the tips in this article will help you make your money work for you.
If you have lost a prior home to foreclosure, this does not mean that you are out of home owning altogether. You should be able to get a government-backed mortgage through Fannie Mae, Freddie Mac and the FHA, in as little as three years after your previous home has foreclosed.
A good rule of thumb for savings, is to put away 10% of your income each payday into a savings account. Make sure that you don’t have a debit or credit card linked to this account, as it is too tempting to spend it if you find something you can’t seem to live without.
Invest in what you love. The stock market and companies can be very confusing, and can seem like an unpredictable roller coaster. Plan on investing over the long run, not trying to make a quick fortune. Pick a company or companies who have been around for a long time, and who’s product you personally enjoy and use. This will give you some piece of mind in their security, as well as an interest in following them.
Home equity loans are tempting but dangerous. If you miss a payment on a home equity loan, you could lose your home. Make sure that you can afford the monthly payments and that you have a significant emergency savings built up before taking out any loans against your home.
When it comes to maintaining your financial health, one of the most important things you can do for yourself is establish an emergency fund. Having an emergency fund will help you avoid sliding into debt in the event you or your spouse loses your job, needs medical care or has to face an unexpected crisis. Setting up an emergency fund is not hard to do, but requires some discipline. Figure out what your monthly expenses are and set a goal to save 6-8 months of funds in an account you can easily access if needed. Plan to save a full 12 months of funds if you are self-employed.
If you travel by air frequently, it might pay for you to sign up for one of the frequent flier programs. A lot of credit card companies give rewards based on the amount charged. These rewards can be used to get discounted or free air fare. Some hotels will also redeem frequent flier miles. They can be cashed in for discounted stays, or even free lodging.
One important step in repairing your credit is to first make sure that your monthly expenses are covered by your income, and if they aren’t, figuring out how to cover expenses. If you continue to fail to pay your bills, your debt situation will continue to get worse even as you try to repair your credit.
As tempting as it may be to invest in a credit repair program, spend some time online to find one that is free. They are all over the web and many times cover the same steps for credit repair as the ones that you pay for do. Save yourself some money by looking for the ones that are not going to cost you.
Get yourself a free checking account. Checking accounts these days charge an average of about $13.00 in monthly fees, and usually require a minimum balance to keep the account free. Switch to a no-fee account that requires no minimum balance and does not charge per transaction. Try smaller banks in your community, online-only banks or credit unions.
To help yourself get in the habit of saving, ask your bank to put a portion of direct deposits into your savings account. Having this done automatically will allow you to save without giving it much thought. As you get more used to saving, you can raise the amount placed in your savings account.
Giving children an allowance is a great way to introduce them to personal finance and teach them how to manage money. When they are given age-appropriate chores and paid for a job well done, not only are they motivated to continue doing good work, they are learning about responsibility and the value of a dollar.
Save yourself the hassle of worrying about holiday shopping right around the holidays. Shop for the holidays year around by looking for deals on things you know you will be buying the next year. If you are buying clothes, buy them out of season when they go onto the clearance racks!
Having knowledge of how to effectively handle your personal finances is priceless. If you can be aware of your money, where it is going and why, your life as a whole and financially will be simpler. If you follow your financial goals, you will set yourself up for a financially sound life.