We’re already in the third week of January 2013. Are you through working on your financial plans for the year?
If you’re yet to draw up a clear financial plan, for the current year then, allow us to discuss with you some steps you can take in the first two to three months of 2013. We believe that by employing these simple suggestions, you can eventually become more responsible, in terms of managing your day-to-day finances.
Establish a contingency fund. Did you find it difficult to finance medical emergencies and urgent personal expenses last year? If you did then, it’s about time to establish, not just a personal savings account, but also a contingency fund. Open an account in a bank nearby and strive to deposit a certain amount of cash on it, either on a weekly or on a monthly basis. By doing so, you will eventually have funds you can tap on in case of emergencies, and even during calamities and natural disasters.
Pay close attention to how you manage your existing lines of credit. Keep in mind that the manner by which you handle your credit cards and loans can have a huge impact on your chances of qualifying for lines of credit, in the coming months.
So, be careful with how you manage your credit accounts. For credit cardholders, make sure that you use just a reasonable percentage of your credit limit. That way, you can avoid spending a great deal of cash on overdraft charges and declined transaction fees. Moreover, you can prevent your debt-to-limit ratio from shooting up and your credit score from sliding down.
For loan takers, see to it that you abide by the terms and conditions of your credit agreement. By doing so, you won’t have to worry about being penalized for committing violations against your contract.
Look for ways on how you can save on your credit card transactions. Is it really possible to save on your credit card charges? ABSOLUTELY! To succeed in this matter, you simply need to consider how you manage your monthly bills.
For instance, do you pay your credit card bills in full? If you don’t then, for sure you make substantial payments on interest. Now, if you wish to significantly reduce the payments you make on interest charges then, you should try to settle your transactions completely.
Are you delinquent when it comes to your monthly dues? If you are then, such habit surely costs you a great deal of cash, in the form of late payment penalties and surcharges. Now, if you wish to realize huge savings from your credit transactions then, you should do your best to keep up not only with your credit card bills, but also with your other financial obligations.
Tailor your budget plan. Review the items found in your budget plan. And look for products or services you can live without. That way, you can cut some corners from it and use the funds you will save from such items on more important or urgent expenses.
You should also resolve to stick to your budget plan, no matter what. In so doing, you can avoid going overboard and spending beyond your means.
About the Author
Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers find and eventually manage the best credit programs. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information about different lines of credit, as well as the latest trends in financial management.