Guest post from Stewart Bradley
Though the US government raised the debt ceiling in August 2011, there are still talks about the nation hitting it yet again even before the Presidential elections. As the government equips itself against all odds, what about the consumers who are also strangled with a high interest debt cycle? Are they also thinking about raising their personal debt ceiling with time or are they looking for ways to equip themselves with the best personal finance tips with which they can get a firm grip on their distressed finances? Who would want to incur debt, get harassing calls from debt collection agents and then run at the back of the companies for validation of debt? Well, if you want to live to tell the tale of credit crunch, you have to be financially armed and also practice some of the best personal finance habits. What are they? Read on to know about them.
- Review your personal finances periodically: This is a habit that most of us lack but if you don’t want debts to mar 2012, you should review your present financial situation periodically. Though it’s really tough to track your expenses but you can sit with a pen and paper and jot down each and every expense in order to stay on track. Just make sure that when you track your finances, you maintain a spreadsheet so that you may ensure transparency. The drudgery of tracking your pennies will certainly pay off in the near future.
- Keep away some cash: Go to a bank and open a separate account so that you can keep your hands off some cash. You may use your checking account for your daily expenses that includes rent, food costs, utility costs and others. But maintain your savings account as something that should be used during an emergency. Don’t use it as a piggy bank withdrawing money for petty expenses.
- Stay within your means: Before buying a shirt that costs you hundreds of dollars, remind yourself of all the other debt obligations that are more important than buying yourself a shirt. Think about the debt obligations, the student loan payments and determine which is more important. Learn to distinguish between needs and wants and concentrate more on the necessities than on the luxuries.
- Resist the temptation to splurge on credit: If you always have the temptation to splurge with credit, change this habit immediately. During such sluggish economic times, using credit while shopping is a huge blunder and therefore you need to make sure that you don’t commit this error. Always stuff your wallet with enough cash so that you can suffice your need with cash and not with credit.
- Get yourself insurance policies: If you already have insurance policies, you should check whether or not you you’re paying for coverage that you don’t need. Speak to your insurer and cancel such coverage so that you don’t waste your dollars. And if you don’t have an auto insurance policy, a life insurance policy and a health insurance policy, get yourself one and protect yourself from a financial disaster.
During times of odds, you have to act smartly with your finances so that none of your moves boomerang in the long run. Take the steps mentioned above and start afresh.
Stewart Bradley is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. Though he holds his expertise in the Debt industry and has made significant contribution through his various articles, he has interest in budgeting, mortgage, insurance, short term loans, bankruptcy, credit advice and more.