Monthly Archives: May 2013

Ways To Manage Money Wisely

Managing personal finances

Ways for managing personal finances

Managing personal finances requires managerial skills since it essentially deals with achieving a balance between spending and savings. However, you cannot ignore the need for money management in your personal life, especially during the tumultuous times of economic depression. It will ensure that you have sufficient money to spend while preventing you from making big financial mistakes.

Managing money involves the task of planning and forecasting and employs a series of financial techniques. Here are some ways to manage your personal finances in the times of economic depression.

Allocating funds for meeting various needs

You should have a clear idea regarding the use of your money. It is better to reduce the unwanted expenses so that you can contribute more money toward the savings. Moreover, you need to allocate some funds to meet emergencies. It will come handy in many instances.

Finding funds for meeting educational expenses

It is important to create a separate savings account for your children’s educational expenses. Starting an appropriate college savings plan will help you reduce your burden. All you have to do is to make a small regular contribution to the account. It will relieve you from finding huge amounts toward the college expenditures when your kid reaches college.

Inculcate the habit of savings

economic depression

Task of managing personal finances

Along with your efforts in cutting down the unwanted spending, you need to focus on the better utilization of the money so saved. You can open a small savings account (better if you start early) and earn additional money by way of interests. Make sure that you start the account as early as possible to increase your contributions to the account. Over a period, your earned salary will increase and you can capitalize on the same.

Stay away from bad debts

The act of efficient money management involves your ability to avoid the instances of debts and outstanding money. Make sure that you use the credit cards wisely; it is always wise to pay off the entire balances at the end of the month. The offers from the credit card company may seem tempting; however, you can save more money by making down payments.

A proper and effective management of money from time to time will help you meet the contingent needs and you will be benefited when you retire. Managing personal finances will ensure you that you have enough money to meet your expected and unexpected expenses.

Choosing Personal Finance Management Software

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Manage personal finances

Managing personal finances is very important to preserve your money for your daily as well as your future uses. You may always complain about not having enough money to fulfill your needs. Even if you have large amount of money with you, it may not end all of your financial needs. Whatever money you posses, in small amount or large amount, you should take utmost care to manage it. Once you manage your money effectively, it will be beneficial to meet your financial requirements in the future.

Managing personal finances should include the following parameters,

  • You should have an idea on how to spend the money as well as where it goes.
  • You should make a plan to save the money to fulfill your future plans.
  • You should practice a way to identify your expenses prior to your spending and thereby, limit your lavishness.
  • You should have a well-maintained record of your financial transactions.

Finance management software

Most people carry out their financial dealings online nowadays. Many of them find it difficult to manage their cash by their own and therefore, they depend upon online finance management tools to perform these tasks for them. You can preserve your money as well as time by utilizing these online tools in an efficient way. The functions of the web-based tools consist of preparing budgets, tracking your expenditure as well as your deposits and saving cash. Below instructions will help you to choose an online tool that is suitable for you.

  • Choose the software based on the analysis given on a computer magazine or via online.
  • You should distinguish the functions as well as the cost of different programs.
  • You can choose the standard version of the software if you do not want to observe your deposits.
  • If you wish to use investment tools, compare its various functionalities.
  • You can integrate with Intuit’s TurboTax as well as with Intuit’s QuickBooks by purchasing Quicken.

    PFM

                    Managing your finances

  • If you plan to incorporate with a bank, then locate the software that is suitable for your bank.
  • Select the software that includes features such as payroll, billing and invoice for your business purpose.
  • Make a comparison based on the software’s user-friendly nature as well as its features to fulfill your tasks.

Above guidelines should help you to choose an online tool that satisfies your money concerns. Adopting web-based software balances your financial life by managing your finances effectively.

How To Attain Financial Stability Over A Long Term?

Managing personal finances

   About managing personal finances

Finance is something that requires paying attention to, if you wish to achieve. Without finance, it would be difficult for you to meet your day to day requirements also. Managing finance is an art, and if it’s done well, you can definitely dispense with a lot of stress. Managing personal finances in a judicious way would help you to meet all the requirements and beyond, to save up for the future. This art if practiced well will help you to acquire every comfort, without letting yourself fall into a financial crisis.

Each and every family would be happy if their requirements are satisfied. There are people who would live with just adequate finance. Even if they do not live in luxury, if finance is managed in a better way, they can definitely stay out of debt. Even if they do not acquire a luxurious living, they can live in the comfort of a small home without worrying about unpaid debts.

Obtaining loans

In order to meet several domestic requirements, you would have to depend on loans. But what if you do not have a good credit score? Banks would definitely consider your payment history in order to provide loans. When you happen to make an overdraft from the bank, get ready to meet the heavy interest that would be charged, which would be higher than the money that you have borrowed. Hence, before you leap into making a huge transaction, be cautious, so that you do not have to suffer huge losses.

Using credit cards

unpaid debts

    How to manage personal finances

There is no doubt that a credit card is going to help you in emergencies. The trick lies in paying off the due amount at the end of the month. Credit cards can definitely help you to meet unforeseen financial requirements, and it would be more suitable if you stuck on to a company for six months. The reason for this is that most of the credit card companies do not charge their customers for the first six months. Hence, skipping to the next company would definitely help you to avoid paying the interest associated with credit cards. Be careful not to use the credit card too often, which could again put you in peril.

To take a rest after retiring, try to utilize the pension amount by maintain the standard of living, and this can be done by managing personal finances carefully.

Teenagers Should Learn To Save Money

Money management tips

Money management tips for teenagers

Creating a habit of saving money right from the childhood will help you gain enormous investments down the line. Some may inculcate the habit for savings from the childhood but some kids might need the help from their parents. Parents can provide money management tips or kids can search online to find ways to implement the same effectively throughout their life. Parents, of course play a major role in imbibing the habit of savings. We cannot expect children to start managing the funds themselves from a very young age.

Moreover, there will always be a temptation to spend the money as and when they receive money, especially in the case of teenagers. They are not concerned about savings and as a parent, you need to develop the habit of savings from the very young age. Here are some suggestions to imbibe savings habit in teenagers while they earn independently.

How to start saving your money?

Many websites suggest that teens should follow the rule labeled ‘save before spending’. No matter what you do for a living, be it babysitting, or receiving weekly allowance, you should keep in mind that the first priority is given to savings rather than spending. The savings should be properly deposited in the bank by opening an appropriate savings bank account.

Teens should open a checking account, as this will help them to save more money and contribute it to the account. A checking account is a safe way to invest their savings. By opening a checking account, teens will know about the additional income received by way of interest and encourages them to save more money.

There is also another option to imbibe savings habit in teenagers. You can earn Matching Grants from parents. Many websites recommend that teens can ask their parents to contribute to their savings account in proportion to their earnings. However, this is not assured in all cases, but you can get a percentage of your earnings from your parents. This will obviously encourage them to save more money to their account.

imbibe savings habit

             Useful money management tips

Teens tend to save more money when they have a objective. They should be encouraged to save more money by opening bank accounts. Whatever may be the reason to save the money, you should never discourage their attitude for savings.

It is better to promote the habit of savings from a young age, so that in future they get more opportunities for investments. Money management tips should be provided by parents, which would allow your teenage children to become financially strong.

Managing Finances On A Single Income

Managing personal finances

  Managing finances on a single income

Managing personal finances on a single income is always challenging. If you have switched from a double income, and have moved out of your comfort zone, you may feel as if you are under great financial pressure. Sometimes you may even consider that you are on the verge of going bankrupt. Therefore, it is better to plan your finances, and avoid the tension & stress related to financial pressure.

  • The first thing to do is, start a discussion about money management with your spouse. Do not let the financial pressure build on you and crack your bond. Suggest setting limits on the ways of spending, and evaluate your expenses together. Work out on how to minimize the costs, and how to increase your family savings.
  • Build a working budget around your income, and try to sketch your expenses in advance. Plan new commitments and include them in your prepared budget. You may plan for buying a new house, travelling, holiday expenses, or spending on education costs. Predict the future costs and make sure that your budget plan has got it covered.
  • Try to save some amount out of your income before committing for the expenses as per your budget. For example, you can save 10 percent of your income as soon as you receive your paycheck, then set aside 35 percent for your household expenses; use 15 percent for any debts to be cleared, set aside 15 percent for transportation & fuel expenses, insurance, and maintenance, and use the rest 25 percent for utilities, daily expenses, and entertainment.

Maintain a good shopping habit. Prepare a list of required items at home, rather than dumping all the things in your cart, which you come across in the store. Make a list of required commodities for a week, and stick to the list. Try not to overspend on purchases.

Minimize the costs

          Managing personal finances

Clear your debts on or before due date, to ease the pressure from lenders. Expand your savings account. Opt for a credit card with lower interest rate. Check all the aspects carefully, like annual fees, or any hidden charges. Be careful while planning for a loan, and check all the required documents vigilantly before signing the agreement.

Managing personal finances is very important, as you are responsible for all the consequences faced. Improper planning may lead you to critical financial state, because of your poor decisions. So plan your finances, and prepare an appropriate budget to lead a worry free life.

How To Manage Your Finances Wisely

managing personal finances

   managing personal income

A good personal finance management can always get you good results. Managing personal finances can benefit you in many ways. Let us find out the importance of finance management in detail.

  • Accomplish your goals – With a well-planned financial management, you can accomplish your long term and short-term goals without liabilities. These personal goals can be anything from buying a car to education of your kids. With a good personal financial management, you divide your income wisely and save it for your various needs.
  • Keep away debts – A debt always worry you. If you owe money to someone, you might be thinking of ways on how to return it within the promised time. Your lender may not be always a nice guy to accept your explanations if you fail to pay him back in time. If you spend and save your hard-earned money sensibly, you can keep away debts.
  • Get relieved from Stress – With a well-planned finance management, you can have peaceful sleep. If you have saved enough for your child’s education or have enough balance in your bank account, you can always be relieved from financial pressures. When you are in debt, you are always worried and think of ways to payback.
  • Feel empowered with good financial management – When you are in control of the funds that you spent, you get a sense of power as you take decisions on where to spend and how your hard-earned money is used.

Some important aspects of personal finance management include savings, insurance, investments and planning for your retirement life.

  • Savings – Savings play an important part in financial management. Save a part of your income and they can help you out in times of difficulty.
  • Investment – Investments can gain you more. Invest in things or businesses, which you think, can benefit you later and get good returns.

    personal financial management

               control personal finances

  • Insurance – As part of managing personal finances, insurances play an important part. An unexpected medical need can thwart your financial plans. Therefore, it is very important that you insure yourself, your family members and your valuables. Get the insurance cover from a renowned company so that you get a handsome compensation.
  • Retirement planning – You need to be financially secure during your old age, so that you can enjoy your retirement life with your partner and without depending on your children. So, go for a retirement plan, which will earn you benefits from tax cuts.

Finance management is an easy task for anyone who has a plan as per his or her income. All you need is a little care and caution with your hard-earned money and live with a peace of mind.

Are You Good At Managing Your Personal Finances?

managing personal finances

       Manage your personal finances effectively

Managing personal finances is a simple task if you approach it in the right way. This is not an easy one-step process. Dividing the task in to smaller tasks and finishing them in a structured and timely fashion is the key to simplifying the process. Let us take a look at the vital steps involved.

Manage your credit history

A perfect credit history is the gateway to financial security. A well-managed credit score can ensure that you get low insurance premiums quotes and loans for very low interest rates. Your credit score is a reflection of your financial responsibility. Hence, do regular follow ups to ensure a healthy credit score.

Regulate your mortgage payments

Ideally, your combined mortgage payments should not exceed 30% of your net earnings. Ensuring this will keep your mortgage payments well within your budget. Take care not to invest in land or property with loaned amounts that cannot be comfortably paid off with a percentage of your current income.

Manage combined finances

If you and your spouse are both earning, you have to manage both your finances in an effective way. The federal government offers many mortgage plans, which are ideal for earning couples. Such schemes often help you save more money than when you avail them as a single earning member. Try to invest considering only one person’s income. This will prove helpful when one of you want to take a break from your career.

financial security

                 Tips for managing personal finances

Pay your taxes

Pent up tax payments can cause money loss in the form of interest. It will also adversely affect your credit history. With the help of a tax consultant or using an online tool, work out your taxes and pay them off on a regular basis.

Save up for the future

Decide upon a fixed percentage of your current income that you want to save for your future. Without fail, set aside that amount every month in a separate account. You can also use savings plans such as the 401K, which will help you save a lot on your income tax payments. Purchasing stocks and bonds or investing in real estate also offers better financial prospects. Nevertheless, always take care not to put all your eggs in one basket!

Your present and future lifestyle depends a lot on your personal finances. Hence, a well-devised plan for managing personal finances is essential to ensure a comfortable and carefree life!

All About Personal Finance Management Software

managing personal finances

       About managing personal finances

People may find it difficult to manage their finance in a proper way, due to incorrect budget planning. A lot of times this can land them in trouble, which can be avoided with proper finance management. The latter ensures that you’re left able to meet your requirements, and it also lets you save some money. To handle your money well, you can seek the assistance of personal finance management software.

There are people who use credit cards for all their needs, and do not take care of how much they would get charged in the end. Personal finance management software would help to track each and every transaction for which a credit card is used. It will keep a record of your personal as well as business transactions, and also assist by keeping a record of invoices and receipts, as well as taxes. Managing personal finances well entails that you keep a complete track of these records.

Let’s discuss two of the most prominent financial management programs – Microsoft Money and Quicken. Microsoft Money is normally included when you purchase a new computer.

How to use Personal finance management software?  

retirement accounts

             How to manage personal finance

These software programs work more or less in a similar pattern. They start a new profile for the user, and in the profile you can make registers that include all your savings, checking, mortgage, credit cards, businesses, as well as retirement accounts. The transactions would be downloaded by the program, or this can be done by you. Since you have all the transactions ready, you can make payments, give due dates, set reminders, prepare charts for recording your spending pattern, or go through the account balances.

Merits of financial management software

If you have a software program for managing finance, the automation can help with the tracking of invoices, management of accounts, the tax calculations, the outstanding invoices, and the list of vendors and customers. You would definitely find that tax calculation is pretty easy if you have installed this software program. You can easily fill out the forms for tax information. You can also avoid late payments if you have installed this program. If you are an investor, it would keep you updated about minute stock information, making it easier to arrive at timely decisions.

To enjoy the complete benefits from a financial management software, read the instructions before installing it, and utilize it for managing personal finances in a better way.

Personal Finance Management Tips

personal finance

Method of managing personal finances

Money is something that needs to be handled with great care, because a small carelessness can definitely make you lose the money you might have earned with great difficulty. To avoid losing money, you need to organize your spending. Financial records must be maintained in a systematic manner, and kept readily accessible. Always ensure that financial documents are kept together. You may keep all your credit cards, investment details, as well as other bank related documents in a file, and let your life partner know about all your financial accounts.

Keep a track

Ensure that you keep a track of how you spend money. This will help in managing personal finances in a better way. You might use your credit card or debit cards to make small purchases that will soon swell to a large amount. When you get the payment at month’s end, you might wonder how you made such a huge expense. Keeping a track of your purchases will let you know what categories you spend the most money in. You might be spending too much for entertainment, clothing, dining as well as miscellaneous. Keeping a track of your spending pattern would help cut short on the unwanted expenses that you are making.

You can cut short the expenses by bringing lunch to your workplace, instead of having food at expensive restaurants. If practiced on a regular basis, you can definitely cut short your expense to a great extent. You may purchase household items from less luxurious shops, where you can get things at a discount. Such a purchasing habit can help you to reduce your expenditure to a great extent. Keep a budget for the month, and try to spend within it. Meeting the budget that you have prepared for the month will definitely help you to save some money.

Reduce Debt

financie managemtn

        How to manage personal finances

We use credit cards to purchase different items, or for availing different services. We use them for seemingly innocuous purchases, and are usually shocked by their entailment. If you discontinue the usage of credit cards, you can definitely reduce the debts and save money. You may use credit cards, but only during emergencies. There are credit cards that charge you a high interest rate. Avoid using such cards in the future.

These are the different tips in managing personal finances. Use them wisely, and regulate your spending so that you never find yourself at a loss for money to sustain yourself with.