If you are looking for practical money advice there are many sources available like finance Yahoo. While finance Yahoo has established itself as an authority of financial matters there are some common sense tips you could incorporate into your day to day life that will have a meaningful impact on your wallet and peace of mind.
Keep Track of Your Spending
This is the most common mistake we all make, we get caught up in our daily activities that we don’t actually think about what we are doing with our money. One of the most common ways we spend more than what is necessary is by purchasing specialty coffee from major coffee chains. That $10 cup of coffee may taste great but if you drink one of those each and every day that would be nearly $4,000 a year in coffee alone! While at first, it doesn’t seem expensive over the course of time these little, unaccounted for expenditures really do take a bite out of your budget. By documenting where each and every dollar goes you are more likely to avoid going into debt and debt should be avoided at all costs.
Risks Associated with Cheap Credit
It seems everywhere you turn there is someone offering cheap credit, no money down and you can have that new car, house, clothes or whatever strikes your fancy. The issue with this cheap credit is eventually you will need to pay it back in full. While the economy is doing well right now, what would happen if you lost your job? All of a sudden those small payments really add up when there is little to no income being generated. Another downside to cheap credit is people tend to buy things they would not purchase if they had to pay cash in full. When we actually take cash out of our pocket to make a purchase we really feel the pain while using a credit card is painless at least until the statement comes in the mail.
Avoiding Debt Like the Plague
If you find yourself in debt then you should come up with a plan of how to get out of it. No point saving for retirement if you are in debt today. Instead of putting money into a retirement plan use the cash to pay down your debts, the money you will save on interest will easily offset any potential return your retirement investment would have generated. Individuals who are in serious debt should think about going for a consolidation loan where all of their debts are paid off then the individual just makes one regular monthly payment. While this may be a bitter pill to swallow until the debt has been addressed the individual will not have peace of mind. Aside from the stress caused by being in debt, it will also take a toll on personal relationships. The majority of divorces that take place are due in part to financial hardship within the relationship. By following the tips that have been provided you should be better equipped to make wise financial decisions.