Top Reasons Why Your Personal Finances Are In Tatters

Coming home to a nasty credit card bill

Coming home to a nasty credit card bill. Source: photo

Let’s face it – money is tight these days no matter who you are or where you live. Learning to save and correctly budget your money is a skill that eventually improve your personal finances no end. This applies not only to those with low income jobs, but to anyone who would like to sleep comfortably knowing that they are not in debt. That said, there are plenty of ways to keep yourself afloat without having to live like a ‘serf’.

Forget about the flat-screen television. Even though “everyone” has one these days, and you can sometimes get a “no payments no interest for twelve months” at your local department store, the bottom line is that this is a luxury that is unnecessary to daily living. Don’t give in to the trend! Next, ditch the premium television channels. You may be able to lower your cable bill from $100 a month to $30 a month if you can do without the higher end channels. Also, hold back on putting a TV in every room. The extra electricity that you will use adds up to a hefty sum of money.

Eating out too often is another way that people tend to spend much more money than necessary. Sure, it can be nice to go out for a steak every once in a while, but try limiting this to once every two weeks. After all, cooking at home is usually more satisfying to begin with! However, don’t use this as an excuse to eat poorly, as this will not help anyone in the long run. Stick to grains, fruits and vegetables. It is also important to get plenty of exercise to compliment your diet.

Don’t jump into leasing a car if you are looking for a new vehicle, as in the end you will pay much more money than you would if you just bought the car in the beginning. On that note, try to make your vehicle last as long as possible, as buying a new car every few years can be a huge source of wasted money.

Skip the urge to buy the latest and greatest cell phone – this is a trend, just like the flat panel TV! If you really need it for your business then go for it if you can justify it but its just a toy for the purposes of showing off then reconsider.

Another reason why your personal finances are in tatters – you constantly buy new clothes! Why not make use of your old clothes instead of spending a heap of money on new ones all the time!  Fashion comes and it goes. Try to buy clothes that will last for more than one season. Try to avoid unnecessary expenses.

Take these simple pieces of advice on board and you will be able to stay afloat a little bit better.

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