It’s easier to relax when you aren’t worried about money all the time. Having financial security gives us security in many other areas in our lives. A great source of unhappiness for many people is a lack of control over their personal finances. They say that money cannot purchase peace of mind, but you may want to reconsider that claim.
In today’s volatile economy, it isn’t a bad idea to use multiple savings vehicles for your extra cash. Here are some of the types of accounts and investments you should consider: straight savings account, standard checking account, stock investment, high interest bearing accounts, gold investment. Protect your money with whichever of these ideas appeals to you.
Avoid excessive fees when investing. All investment brokers charge you to invest your money and choose investment options for you. The fees they charge play a big role in your total return. Avoid brokers who have high overhead or take a huge cut for themselves.
Use at least two credit cards but no more than four. Having too many credit cards makes it seem that you are not in control of your finances, whereas, too few will not allow for a speedy credit build up. If you want to build credit, keep two cards and don’t add others unless necessary.
Your credit score might even go down as you work to increase it. This doesn’t mean you’re doing something wrong. As long as you continue to act responsibly, it will be reflected in your credit report. Your score will improve eventually.
When you are married, the spouse that has the better credit should apply in their name. If your credit is poor, build it back up with a new credit card account that you use and pay off each month. Once you both have a good credit score, you can both apply for loans and share your debt more evenly.
Student loans are something that you should take out only if you really need them, as they can come back to haunt you in time. If you go to an expensive school while you’re unsure of a career path, this can find you in deep debt down the road.
The best way to avoid messing up your personal finances with dangerous credit card debt, is to stay out of the hole in the first place. Give serious consideration to adding any new charge to your card. Think about the length of time it will take you to pay it off. Anything you know you cannot pay in full within a month should be avoided.
Hopefully, this article has taught you a few things about personal finances that will help you to better manage them and in turn, your life. Achieving a good financial state in your life requires you to make changes and put forth some hard work, but it is well worth it when you consider the increased peace of mind, and decreased stress, you will have. These factors will help add to you having improved happiness.