Smart Tips And Clever Tricks For Personal Finance
If you are looking for ways to save more money, ask your employer if your company offers a flexible spending account option, and then sign up. An FSA will allow you to pay for necessities such as prescriptions and medical expenses with pre-tax dollars. This will, in effect, give you a discount on anything you can use your FSA for. Here, we will offer some great tips to help you use your FSA to your greatest advantage.
Make sure you’re paying your utility bills on time every month. Paying them late can damage your credit rating. Not only that, but most places will charge you a late fee, costing you even more money. It’s not worth the headaches that come from paying late, so whenever possible pay your bills on time.
Quite often it is said that if you make more you spend more. The biggest tip I can offer in that case is to try to live below your means. If you can afford that luxury $1000 apartment, don’t! Live at a more modest $700 dollar one and pocket the difference perhaps to use as a down payment on a house.
Have a yard sale and use the money that you made to make an investment! This will help you get rid of old junk that you have been holding onto! Who knows you may have a treasure stored away in your attic and hit a windfall and then you will really have some money to invest!
It is imperative that one is able to draw from an emergency fund when emergencies arise. The first baby step is to save up 500 dollars of an emergency fund, and then as you can, increase it to 1000 dollars. After you are used to not touching your emergency fund and you start building, you should end up with three to six months worth of living expenses as your emergency fund.
Teach children early about saving money. When giving them an allowance, encourage them to set aside a portion of it. Help them to determine not only long-term goals for their savings, such as college, but also some short-term goals, such as a new bicycle, or even ice cream. As they reap the benefits of saving for their short-term goals, they will begin to understand the importance of it and it will motivate them toward their long term goals.
Even if you are young, start putting money regularly into a retirement account. A small investment at a young age can grow into a large sum by the time retirement comes around. When you are young, you have time on your side. You will be pleasantly surprised at how quickly your money will compound.
As stated at the beginning of this article, A flexible spending account can help you save money on a wide variety of expenses. From medical co-pays, to prescription drugs, you will be using your money more wisely by getting discounts on those expenses, and that can really add up!