Money Management 101

By | January 19, 2007
GENERAL GUIDELINES

Pay Off Debt
Debts are a liability. Pay off debt with highest APR first.

Consolidate Debt
Shop for the lowest loan rate and consolidate. This allows better debt management control. Having all the loan in one place allows you to focus on eliminating it.

Sign Up Overdraft Protection
If you have a tendency to write more than your bank balance, overdraft protection can save you from high fees.

Pay Credit Cards On Time
Avoid late fees and finance charges on your credit card by paying in full each month.

Use Direct Deposit
If your employer offers direct deposit, sign up and have your paycheck automatically deposited to your bank account.

Set Auto Payments
Use recurring payments for monthly expenses. Have your vendor automatically withdrawn money from your bank account or credit card. Examples include electric bill, phone bill, credit card bill, etc. Remember to review your monthly statements before payment is made.

Invest Regularly
The best way to grow your money is to invest. Start with mutual funds and use automatic investing if you’re a beginner or risk-aware.

Spend Wisely
Think twice before blowing your money on purchases. Is it worth buying the product/service? Will it benefit you? If you hold off the purchase, will you still buy it a week later?”

Keep Track
Know where you money is, where it’s coming from, and where it’s going to. Money Management software such as Microsoft Money or Intuit’s Quicken can give you a better control of your financials. Use software or a spreadsheet to track all your financial transactions.

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