Once you start having financial problems, it’s already too late. When that happens, you’re playing catch up and it may take years before you can get ahead. Don’t wait to take important finance management precautions that will help you lead a more stress-free life.
Manage Your Checking Account
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Start by looking over your monthly checking account statement when you receive it. Notice where you’re spending your money, and how much. You’ll begin to nice patterns, and see where you can cut back on costs. Wherever possible, set bills up to automatically deduct from your checking account. Never pay bills late or you’ll be hit with fees.
Split Your Money into Separate Accounts
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Don’t stop at a checking account. Solid financial management means having a backup plan. Get yourself a savings account. If you’re looking at your bank statements, you know when you’re making extra money. Decide on how much you can spare, and set it aside. Link a savings and checking account together, and set up an automatic deduction so that money from the checking will go into savings. The savings is there in times of emergency and unexpected expenses.
You don’t want to use it for big events like Christmas. For this, set up an extra savings account. Put just a little money here, say $10 per week, and the winter holidays won’t take such a big chunk out of your monthly resources. You can also use this account for vacation expenses and other annual events, provided you’re putting enough money into it.
Be Mindful of Your Taxes
Tax policy is always changing and fluid, so you have to do your part. Get a free tax consultation at least once a year to make sure you’re using deductions properly and that you aren’t over-paying. Always save receipts of any and all business expenses, as well as charitable contributions, to save money on your tax payments. Don’t forget that certain expenses, such as your health insurance, are sometimes deductible. If you aren’t sure, ask a tax professional and they will know the answer.
Set up Safeguards
Always have insurance. Address all state requirements you may have for insuring your vehicle and your home, but then insure yourself. Have health insurance of some form in place. Even if you do not have employer-provided insurance, you may buy an individual policy. Paying for insurance is more affordable than paying a lifetime of expensive medical bills because you were in an accident one night.
Don’t neglect life insurance, either. A life insurance policy will be there for your loved ones, and in true emergency situations cash out the policy to give yourself some quick funds. While you’re setting up your life insurance policy, get a retirement account. Start contributing to your retirement account as early and as often as possible, because you may not feeling like working full-time at age 80.
Take hold of your financial situation now, and take important finance management precautions. When you stay on top of your own personal money matters, they won’t wind up overwhelming you.