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How should i manage my personal finance?
How should i manage my personal finance?
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Want to answer more questions in the Work & School category?
Maybe give some free advice about: Personal Finance?
It all depends where you are in your life. If you're out of school and working- I used this great book which is great for first time starters- and have suggested it to a lot of my buddies who are residents.
Susan Ormon's Money book for the Young, Fabulous and Broke. It is very easy to read and very basic- it doesn't go into stock investments and such, but it is iimportant to have a basic understanding before you get into more investment type things.
Best of luck,
AK
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Wow, a loaded question, but very appropriate. It is important to have a basic knowledge of economics in order to live an economically stable life. I can give you some basics, but it is a good idea to take a basic economics course in order to prepare yourself.
1. Don't over extend yourself with credit card companies.
2. Always, Always Always protect your good credit rating. A bad credit rating will cost you thousands of dollars in interest fees over the life of a car loan, or home mortage or even credit cards. People with bad credit pay more in interest.
3. Save, Save, Save, Save for retirment, safe for big ticket items.
4. Should you ever use credit cards? Sure, but use them wisely. If you never use credit for purchases, you'll not be listed with any of the credit bureaus. So anyone who wants to know your credit history, will not be able to find you. What you want them to find is a good credit history So use credit cards but don't charge more than you can afford, and always always always pay your credit cards on time.
5. Problems. Handle problems proactively. If for any reason, you see that you will not be able to meet an obligation, for say a car payment or a loan or a credit card, call them before the payment is due, explain he situation. In many cases, they will allow you to skip a payment and not penalize you. Or increase your grace period.
Get a free coppy of your credit report each year. (allowed by law.) and monitor it.
Here is another thing that I caution you. Don't allow LOVE to ruin your credit. BEcare ful who you marry. I know it sounds heartless, but after you have spent years keeping your good credit, don't let a looser or a bad divorce ruin your cedit. Don't let it all go, just because you are emtionally distraught. It will haunt you long after you've gotten over the emotional pain.
Right now the economy is bad, but it will get better. Don' t think that it will last, and those of us with good credit will reap the benefits.
If you need more info goole this person
Michele Singleterry. (SP?) She writess a personal finance column. She is a guest on many talk shows. She is very practical and very smart.
And she explains things very well.
Michele
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