8000 Credit dot Org » Importance of personal finance

Reduce your Spending without Sacrificing Much

Teena — Sat, 24 Oct 2009 03:28:59 +0000

Somehow frugality has always been linked with giving up pleasures of life. According to me it is a very wrong notion. You could enjoy all the small and big pleasures of life while still saving money.

Here is a list of things you could do to reduce your spending:

Sell the Items you don’t Use Anymore:

Find out the items that you have not been using for a long time and sell them. It might be your old books, CDs or even a home appliance. Sell them, create some more space at your home and enjoy the free space and money that comes out of selling.

Save on Energy:

Replace light bulbls by CFLs and LEDs .

Unplug aplliances when they are not working.

Switch off lights and fans when you leave the room.

Seal the air leaks in your home.

Do a regular maintenance check on all appliances.

Save on Cell Phone:

Unless you have a valid reason to use cell phone heavily, replace your plan to pay as you go. Try using Skype whenever possible and reduce the frequency of using your cell phone.

Buy the Regular Stuff in Bulk:

Be it oil, soaps or even your body spray, if you are something regularly, buy it in bulk for it comes cheap.

Make use of a Library:

The next time you want to watch a movies or read a book, think of signing up for a library membership.

4 Tips to Gradually become Rich

Teena — Thu, 24 Sep 2009 09:55:07 +0000

There isn’t anyone who would go away from the word ‘Rich’. However not everyone is able to embrace richness, this is because the rich are disciplined about money and follow some rules to make that money stay and multiply.

Here are 4 Tips you could practice to become rich:

Love the process more than the result:

If you keep on thinking abot becoming rich without enjoying the efforts taken, it could be a difficult journey ahead. Hence although the amount you save each month might be less, be happy that you are doing your job.

Treat Yourself:

After you reach a specific goal, you can treat yourself. Not necessarily by buying a luxury car with all your savings. A bottle of wine or a movie with your spouse would do.

Keep an eye on Fee:

When you start a savings account, the interests may be attractive but make sure the fee is attractive too else the earned interest would go waste on the fee.

Use your Power

The more you save , you might be eligible for special discounts and fee waiver at banks. Use these benefits to earn more.

4 Important Money Lessons

Teena — Thu, 24 Sep 2009 09:39:04 +0000

Hi Everyone! We have come across various tips to save money, to build wealth and start investing. Yet some of us remain hesitant towards taking our first steps. I not going to give up. I will do my job to keep you all as much motivated as possible. Today i am gonna give you all 4 simple lessons about money.

Lesson 1

Never spend more than you earn. It is simple mathematics. Spend as much less as possible than you earn, the more the gap is the more beneficial it is for you.

Lesson 2

Never invest while you are in huge debt. Start paying your monthly installments towards your debt, once it comes down, you can think of investing. However if all that you have is just a home mortgage that is taken care of regularly, then you could think of investment.

Lesson 3

Once you do this the friendship takes a new level and there are fair chances that you don’t see your friend as the person yo used to before. Be careful.

Lesson 4

Prioritize and work towards your goal. You might be having one major goal to achieve which you will have to accomplish a number of smaller goals. Make a list, prioritize andgo ahead. If you fail to get things organized. you are never likely to get there.

Finance Lessons from Monopoly

Teena — Sat, 19 Sep 2009 11:13:31 +0000

Almost everyone of us would have played monopoly at some point of time or the other. The prospect of buying more properties and having a huge amount saved up in bank should have been delightful. Equally disappointing should have been getting into debt or ending up in a prison.

Monopoly is not merely a game of entertainment. Apart from increasing your general mathematics knowledge it also has few valuable lessons to teach. Lets have a look at them.

Long term asset building:

Just like in the game of monopoly , it is important to let your wealth build up by investing in properties. Else you might have to mortgage existing properties to pay the rents and bills. Just saving the money in the bank account might lead you to lose it especially due to inflation. So if you want to protect your money, invest it wisely.

Emergency Fund:

As important as investing, is having an emergency fund. Part of your savings should be allotted towards building a fund that you would use only in the case of emergencies and definitely not for your luxury purchases. If you have one such purchase on your mind, keep it as a goal and start saving every month for it but do not touch your cash cushion.

Just like in monopoly how the roll of dice determines your fate, happenings in your life could change its course , so its always better to be prepared. So next time you are on with monopoly think and apply the same rules to your personal finance, because winning in the latter is more important.

Driver or Doctor – Who Is Richer

Ben — Sat, 11 Apr 2009 05:55:29 +0000

I read a lot of a financial blogs and recently I read a very interesting story which has a very important financial lesson for all of us. The true story is about a financial blogger who happened to share a bus ride with few folks and soon they got talking.

When the other passengers came to know that one of them is a personal finance blogger, they all tried to gain some advice and in return told him their personal financial perdicament.

Long story short, the article made for a damn interesting read. I would not only recommend that you read the article, but also subscribe to the gentlemen’s blog as it regularly churns out interesting tid bits about how to save money and maximize your earnings.

Why is it important to plan personal finances.

Give the phase America is passing through, it makes sense to be penny wise. If I have to sum it up, I would say, learn to live below your means and try to make as much as you can.

Check out the article from here.