Blackhillsams

10. Not having a plan in case of emergency

A lot of people cut their budgets very close.  If you have you money portioned out precisely for your regular expenditures and you haven’t left anything in the budget for emergencies, how will you pay for repairs if your car breaks down?  If your house suddenly needs repair?  If you have emergency medical bills not covered by your insurance?  It is important to make sure you have a plan to cover emergency spending.  If that means cutting things out of your regular budget that may not really be necessary, make sure you do that.

9.  Spending money on luxury items you don’t need

This one should be obvious, but a lot of us violate this simple rule anyway.  When you see a new car, an article of brand-name clothing or piece of electronics equipment, ask yourself a couple of questions.  1) Is there money in my budget for this? And 2) Do I really need this?  If it’s an impulse buy, odds are first answer is no.  The second answer is probably no in any event.  Think about whether you’d rather have the item or financial stability.  

8.  Buying extravagant gifts for friends and family

This is basically the same as the previous item on this list.  The difference is that some people have a problem not with buying things for themselves, but with buying things for others.  Selflessness is commendable, but it doesn’t have to be as expensive as you might be making it.  It’s not going to do your friends and family any good for you to go bankrupt buying them extravagant birthday presents.

7.  Letting small expenditures add up

If your money is disappearing every month and you can’t figure out where it’s going, odds are you’re not keeping track of minor expenditures.  Say you take a trip to the grocery store to pick up a gallon of milk for three dollars.  While you’re there you pick up some ice cream, maybe a twelve pack of soda.  You spend three dollars on candy for the kids in the checkout line.  Swing through a drive-through on the way home to get some food.  Why not get the large for only a few cents more?   Each of these items individually may not be very significant, but by the time you get home, you may have spent $30-$40 during you trip out for some milk.  If these sound like the kind of expenditures you might make without keeping track, that’s probably where your money is going.

6.  Not saving money

If despite your best efforts you find yourself owing more money than you expected, it can be a huge relief to realize you have some money saved up that can help gt you out of trouble.  Try putting a percentage of every paycheck into a savings account you never touch.  If something you didn’t expect rears up and you have to pay a lot of money, you may find that you can take care of it without declaring bankruptcy.

5.  Not keeping track of your funds

How much money do you currently have in your checking account?  How about your savings?  What have you put on your credit card in the past week?  If you don’t know the answer to all three of these questions, you’re probably going to wind up overspending.

4. Putting too much on your credit card

Credit card debt is a serious problem in this country.  One main reason is that people treat them as free money without really planning how they will pay off the money they put on them.  Another is that people don’t think about the interest rate they will have to pay on purchases on their credit card.  If you are making a purchase on credit that you could pay in cash, it may be better to use cash than to risk interest rates running away from you.

3. Letting late fees build up

Almost everyone is late with a bill from time to time.  What can really kill you is being late with your bills so often that late fees and surcharges start to build up.  Before long, the late fees you pay every month may be as large as any of your other bills.

2.  Ignoring bills

This should be obvious, but some people simply don’t take action.  If you don’t pay your creditors, they are within their rights to take collection action against you.  Most of them, however are willing to be lenient if you will simply talk to them.  A lot of companies will allow you extensions if you need them as long as you talk to them in time.  Give it a try.

1.  Spending more than you earn

Everything else on this list is derived from this one simple rule:  Know how much you make, and spend less than that.  It’s sounds simple, but it can fell complicated.  Once you start keeping track of you earnings and expenses, however, you’ll probably be surprised at how easy it becomes.

Debt Settlement / Debt Consolidation Help / Debt Settlement Services

So you’ve finally got your first credit card or you’re looking to get one. Well, there are a few things that you should know before you start swiping it at your local convenience store. While it’s great to have a card to build credit, you still have to learn how to use it right in order to build your credit the right way.

Only spend what you can afford – A credit card isn’t free money and you have to get this into your head right now. You can’t spend more than what you can afford. What do I mean by this? If you make $500 a month and you can only afford $100 for fun money like CDs, video games, etc, then spend no more than $100! Even if you have to keep a tab on how much you spend, do it. The more organized you are, the better you will be with your spending.

Always pay on time – One of the more important things that you have to remember when you do get your credit card is that you always pay on time. Even if you can’t pay in full, it doesn’t matter; you have to make sure that you pay the minimum. Failing to pay the minimum will put a huge ding on your credit report. This is why it’s important to spend what you can afford because if you start to spend too much, you may find that the minimum may be too much to even afford. Your credit card statement is generally going to come at the same time every month. If you don’t know when this is, you can always call up or check your online account. When you access your online account, it will tell you when your next statement period will start and how much it will be.

Take care of your card – Never let anyone borrow your card and always keep it in your wallet. IF you’re going to shop online, make sure you know who you’re shopping with. If you shop with the wrong people, they can steal more money than you think. Luckily though, you’re only responsible for the first fifty dollars by law. By regardless of this, it’s a pain in the butt to get this situation taken care of. Always know where your credit card is and if you’re not using it, as I already mentioned, have it in your wallet or lock it up at home. You’ll want to lock it up at home just in case of a home invasion or someone stealing it while someone is at your home.

Having your first credit card is great. It’s going to build your credit so that you can get that home mortgage or car loan you want in the future. Without credit, it’s going to be awfully hard to get a loan. Be responsible with your card and don’t let others tell them that credit cards are bad because these are the people who don’t know how to use them.