Since I’m on vacation this week, I thought I’d use the time to showcase some guest bloggers. Today’s blogger is Suzanne Cramer. Suzanne is a certified credit counselor and a Social Media Specialist for Care One Debt Relief Services. Suzanne writes for Divorce, Debt and Finances and A Straight Talk on Debt. Follow Suzanne on Twitter @ADivorcedMom and @AskCareOne where she stares her insights on divorce and managing your finances.
There are certain things everyone should know about personal finance. The debate goes on as to whether or not personal finance should be taught in schools or if these are lessons best taught at home.
Regardless of where the lessons are learned, your age, gender, or socioeconomic status there are a few personal finance lessons everyone should know and practice.
One of my biggest goals in life is to have learned something new everyday. Here’s hoping you will learn something new about personal finance today!
1. How to budget. Budgeting is the cornerstone of personal finance and is the most effective way to ensure you know what is happening with your finances. Getting started is easy; calculate how much you earn each month, and account for each dollar in a budget category.
- Recurring bills
- Entertainment
- Living expenses
- Savings
- Miscellaneous
By setting up a realistic budget based on your current lifestyle you are more likely to stay on track.
2. Understand how credit works. Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender later. It often materializes in the form of credit cards, or loans for a car, home, or education. But there are costs associated with using credit, so it’s important to compare the cost of various credit options with the actual features that come with the credit offering. Also, you must be responsible in how you use credit so that you don’t accumulate more debt than you can afford to repay.
3. How to check and read your credit report. It is easier to maintain good credit health when you review your credit report at least once a year and correct or dispute any errors. You can request an annual free copy of your report and ensure all the information listed is accurate. If you find that you have bad credit, only time and consistent payments can repair it, so go easy on your spending and make timely payments against your outstanding debts.
4. How to attack debt. View getting out of debt as a long-term goal, but set smaller milestone goals that you can celebrate achieving, such as paying off each individual creditor. If you need some ideas or support, join the CareOne Community.
5. How to choose a debt relief provider. Sometimes the best way to address your debt problems is to partner with a reputable debt relief company. A reputable provider should have a solid record with the Better Business Bureau, multiple options to help you get out of debt, and a relatively long history of helping people get out of debt. The provider should also have the experience, resources, and certified counselors needed to work with you to help pay off debt and turn your financial life around.
6. How to save for your future. While most Americans lack a formal savings plan, you don’t have to be among them! Instead, identify ways to build up your savings reserves so that you can endure tough economic times without amassing debt. Start saving as soon as possible – even if only a small amount – and make saving a regular part of your life. For example, set up automatic deposits from your paycheck into a savings or retirement account.
7. How to select a health plan. Most employers offer healthcare plans be sure to take advantage of this benefit and obtain the coverage you and your family need. Also, read up on the new Affordable Care Act to learn about changes stemming from this health care reform legislation that could lower your costs and make care more accessible.
There’s always new ways to improve your financial health and you can better your knowledge by reading personal finance blogs, following experts, or just staying in the loop with the news.
Personal finance is a big part of your life and making it a priority can help to keep you debt free, financially secure, and ready for your future!
What have you learned lately about personal finance?
What a great post Suzanne! I like the way you organized it.
Jessica, The Debt Princess recently posted…What NOT to Do: Fail to Save
Thanks for the post Suzanne. Always something new to learn in personal finance
Dr Dean recently posted…Best In Nurse Blogs: Low Census Edition!
Yes, with the current economy situation savings has been hassle, even though it is a must to save money for future betterment. With my personal experience i would say having a monthly budget is the most effective in personal finance. It helps to control your expenses and have a proper plan of handling the money, for me it has helped a lot to save money.