2. LOGO
1. Build a Budget
If you haven't already done so, create a realistic
budget.
Approximately 85% of your income should be
set aside for necessities like housing, food,
health care and clothing, according to the
professionals at VISA USA.
This leaves 15% for entertainment and
something many consumers completely neglect:
savings.
3. LOGO
2. Distinguish Needs from Wants
Make sure you have a clear understanding of what you
need in life versus what you want in life.
You need to pay for the antibiotics when the doctor
diagnoses a respiratory infection. You don't need to buy
the latest movie released on DVD to aid in your
recovery.
You need to pay the rent or mortgage. You dont need to
buy the lovely accent pillows that beckon to you from the
interior design boutique.
Always separate the needs from the wants particularly if
money is tight.
4. LOGO
3. Monitor Your Spending
To see what you really spend each month, keep
a running log of all purchasesno matter how
smallfor a full month. This will give you a visual
display of where your money goes after you
deposit your paycheck.
You may find that the $3 cup of coffee that starts
each day adds up to $90 a montha pocketbook
pincher that may prompt you to buy a pound of
coffee beans at the local market and grind them
yourself. That $90 blossoms into $1,080 in
savings at the end of a year.
5. LOGO
4. Create an Emergency Fund
Life is full of surprises both positive and negative. If you
happen to lose your job or suffer an illness that
temporarily sidelines you, you will need cash reserves to
support you during the rough months.
In most cases, consumers who find themselves dealing
with a financial hardship are unprepared and have not
saved for unexpected situations, says Diane Giarratano,
director of education for Novadebt, a U.S. financial
management service agency, with multiple locations,
that provides credit counseling, budgeting and financial
education.
6. LOGO
5. Educate Yourself
When you attended high school or college, you
studied history, mathematics, language and
science, but there was probably no course in
basic money management.
If you need help in meeting a financial goal
whether its buying a home or reducing your debt
take advantage of community resources.
Consumers should feel free to contact a good
credit-counseling agency to obtain free advice
with regard to establishing a budget or to learn
how to handle unexpected hardships, Giarratano
says.
7. LOGO
6. Dont Become a Victim
Identity theft has become an international
epidemic, so be extremely cautious when giving
out your credit card or personal identifying
information. Monitor your credit card bills
carefully for unauthorized charges, and
immediately report suspicious activity to the
issuing company.
By: Rob Sallay
