Thursday, September 25, 2014

Money Tips #8: Plan Your Finances

Over the years, PF Stock has collected numerous money and tax saving tips from readers. In this series of posts, I have compiled some of the best money tips that I've received, each categorized by topic. In addition, I am including other money tips from the internet and from my own experience. I hope that this will come in handy my readers. Today's topic:

Tips for Planning Your Finances
  • Check your banking statements. Be careful of rewards programs where you might have to pay an annual fee!
  • Best tip for saving would be to set up automated withdraws to IRA's, savings accounts, etc... What you don't see in your bank account, you won't spend.
  • Don't necessarily choose the cheapest insurance, choose a company that will cover you in a loss AND has good premium costs.
  • This is not as much a money saving tip as it is a budget on a shoe string. I divide my monthly bills into my paychecks and pay that portion each and every paycheck. This was it is smaller amount and easier to budget.
  • The best tip would be to save more than you spend. Other solutions would be to always survey prices using certain apps that can scan barcodes and also to keep track of daily expenses with a limiting budget set for each month.
  • If you want a new car. Start saving the monthly payment for at least 6 months prior to ensure you will be able to afford it. Also if you save it for 6-12 months at $500 a month that is $3000-$6000 cash. You could use this to buy a used car paid in full and start saving the monthly payment again but 12-24-36 months. This will then give you $6000-$18,000 cash to pay for a very nice car including the trade in value of your car you bought for 3-6 grand.
  • Never spend change, just save it.
  • My best advice is to budget, budget, budget! And, like the above poster mentioned, saved change adds up in a hurry. Lastly, avoid impulse purchases like the plague lol.
  • I believe in setting realistic goals for myself when figuring out what I should be buying and saving. I know my needs vs. wants. I spend based on both, but I only spend on the wants if I have enough to cover those expenses. Too many people spend over the amount they really can afford because of impulse spending. That's bad budgeting. I've learned to plan ahead. Keep a "rainy day" account for those emergencies that may pop up. Plan for the future.
Thanks again to all of my readers who contributed most of these tips. If you have more money saving tips, please share them in the comments below. Your tip may be featured in a future compilation.