The Do’s and Don’ts of Personal Finances

Kimberly Watson, Editor in Chief
July 24, 2012 /

There is plenty of financial advice being bandied around with any one remotely connected to a finance application, suddenly becoming an expert on your personal finance DO’s and Don’ts. Being cynical, this could have some connection with who is paying them a commission!

The fact remains, that you should be the expert on your personal finance DO’s and with some carefully researched basic knowledge, get a very good perception of what actions you need to take. Having a list of possibilities will not provide you with a great means of making a decision, therefore, get yourself off the fence!

One area where the average American is having difficulty has been defined by the Consumer Financial protection Bureau about borrowing money, particularly regarding reverse mortgages and college loans. Consumers ask various questions, concerning, saving and incurring debt for college education.

It is back to the basics in many respects. If you consider this as one of your personal finance DO’s, then as with any form of decision making, with the right information, it is relatively easy to determine what is the right decision. The question of money becomes for many people an emotional decision, causing them to lose any objectivity.

Retirement is another potentially emotive issue regarding personal finance DO’s.  The youngsters don’t realize how drastically their position will change. From looking after only themselves, within a few years they have a mortgage a wife, two kids and all the expenses of keeping pace with the rest of the community. The answer is to start saving even a few Dollars as soon as you can. It’s surprising how quickly it grows.

Buying or leasing a car is easy; a vehicle loses huge value in the first two years, so let someone else pay for it and if possible, buy it outright. A stock or mutual funds decision, is one of the personal finance DO’s in favor of the latter, because you are playing against the odds with individual stocks.

Talking about the odds; turn them into your favor regarding personal finance DO’s. Become informed, take your time and ensure you gather information that will benefit your bank balance and family, rather than that of someone else who did take the time and made the effort.

 

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