What better way, can anyone, clearly prove, and demonstrate, he possesses quality, personal planning, and perception, unless/ until, he does all he can, to improve personal financial planning! When one avoids considering, seriously, the implications of, and significance, of properly handling his funds, and planning, accordingly (addressing, both, short – term/ immediate needs, as well as longer – term priorities), he not only, does himself, a disservice, but, creates the potential for unnecessary degrees of stress, and tension. There have been numerous reports, half of all Americans, cannot afford, an unexpected expense, of $400 or more, because of a variety of causes! In order to best handle, and use, one’s funds, in his own, best interests, whether significant, or not, it’s important to be proactive, and focused. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 actions, which one should use, to make the wisest course of action.
1. Limit use of credit; use credit smartly: Too often, people over – extend, themselves, and, end – up, putting their immediate satisfaction, over, making smart financial decisions! When they do so, they, often, make so – called, minimum payments, each month, rather than paying it off, in – full, and this creates ever – escalating debt, and additional monthly expenses. However, there may be times, when using credit, smartly, may make sense, such as when, you are given, extremely good, limited – length, terms, but, only, when, you are certain, you are able to repay, in – full, before it expires. When one takes out this type of debt, and doesn’t repay, in – full, the interest raid, generally, rises significantly!
2. Buy, when things are, on sale: Avoid paying bust – out retail! Shop – around, both by searching the Internet, as well as looking, in retail stores, and, wait to buy, until/ unless, you find it, at a price, you can afford, and will be better, for your overall financial position!
3. Know your priorities: What’s most important to you, and why? Is this a necessity, or an impulsive action? How might you consider, your true priorities, instead of a mere, wish – list?
4. Know/ prepare, for repeat expenses: Will you have, too much month, left – over, for your income/ revenues? Individuals should consider, examine, and properly/ effectively use, a well – prepared, personal budget! Use a process, which pays attention to your known, current expenses, especially, those, which repeat! The better you prepare, the lower your stress!
5. When paying monthly bills, pay yourself first: Most people, pay various bills, including rent/ mortgage, utilities, taxes, etc, every month. Doesn’t it make sense, to treat yourself, as if, you were a bill (which you truly are), and commit to putting away, a specific amount, every month, in a personal savings vehicle, of your choice?
If you become a better, personal financial planner, and responsibly, learn to handle your monies (revenues and expenses), you’ll make your life, the best, you can possibly be! Will you make this commitment?