Personal Finance Tips for 2009
Some tips to stay in control of your personal finances in this economy. These tips may seem incredibly obvious, but the problem for many Americans is that while we know them, we don’t apply them and we don’t live by them. We close our eyes, swipe our cards, ignore the opportunity to keep track of our spending … that’s how we get ourselves into messes, whether it’s debt, or simply a lack of savings. We can do better, and in 2009… maybe we finally will. Here’s how:
1. Pay yourself FIRST – This means save, this means pay off your bills, this means take care of what you need to take care of before you get generous, before you give to charities, before you lend to friends, kids, siblings, etc. Make sure your financial well being is in place before you go digging into your pocket for a friend.
2. Educate yourself – Half the battle with personal finances is educating yourself so that you know what is going on with your cash. You need to know how to effectively save and invest and allocate your money so that you are looking at a safe and financially stable future. Pick up a guide to personal finances and investing type book, talk to a financial advisor, talk to someone who knows and can impart some wisdom so you’re no longer in the dark. When it comes to your money, being in the dark is an especially bad place to be.
3. Spend less than you earn (duh) — We’re Americans, and while many of us know how to be smart with our money. A LOT of us know how to get into some pretty bad debt. I’ve spend a good about of time researching how to get OUT of debt recently, what the first steps are to take, and let me tell you, the steps are not any fun. So while it seems easy and obvious, it’s not. Don’t spend more than you have! Don’t use your credit cards, if you can’t pay off the WHOLE balance every month. Just don’t.
4. Set up an emergecny fund – We all know that layoffs are becoming increasingly more common. (Unemployment rates hit 7.6 in January!) Prepare yourself for situations like this by saving cash now, so you aren’t in a tight place later if something comes about. It can happen to anyone, a car accident, a lay-off, your cell phone breaks (hey, if you’re anything like me… that’s an emergency).
These are just a few tips, but hopefully they’ll get you started thinking about smart ways to be saving your money, and budgeting now! It’s easy to ignore our own financial well being, but knowlege is power, so figure it out, do the math – and do what you can to save, cut spending, and prepare the future.
