As budgets continue to be tightened, many people find it difficult to organize their finances but it needn’t be tough. As a family usually spends more money during the summer than in other times of the year, their finances can be healthier by following this advice:
Get rid of credit cards
Credit cards are very convenient but high interest rates usually apply when a bill isn’t paid on time. Unless a credit card is required for getting a credit rating shortly before applying for a mortgage, it must be disposed of. When a budget is tight, having to pay interest can put a family in debt. Even if a family has a lot of expendable income at the end of every month, they will still waste money.
Do shopping elsewhere
As food prices continue to rise, a different supermarket must be chosen. When the same supermarket has been used for several years, it is very convenient to keep returning there week after week. However, it might not be the best possible option because food prices can be very expensive. By visiting other supermarkets and browsing at their prices, a considerable saving can be made every week. If a family has many children, as much as 40% can be saved and potentially more. The money that is saved on shopping bills can pay for something else, such as a summer holiday.
Know exactly how much bills are
It is relatively easy to find out how much each household bill is for. By writing how much each bill costs onto a piece of paper or a Microsoft Word document, finances will be easier to organize. The date of when money leaves an account for each bill can also be included. If there is any uncertainty about when a bill has to be paid by, this document or piece of paper can be referred to. If a bill has been misplaced, a utility company can be contacted in order to find out when it is actually due.
Avoid frivolous purchases
Before buying anything, consider if it is actually necessary. Many people buy items on impulse which does affect their finances. Even when an inexpensive item of clothing is bought, that money could have gone towards paying a family vacation. When a woman goes on a shopping spree at a mall that lasts for several hours, she could buy dresses and skirts that won’t be worn until the end of the year. By only purchasing items that are necessary, any cash which has been saved won’t be wasted.
Pay bills online
Utility companies in the United States have special offers for customers who pay solely online. In fact, hundreds of dollars can be saved for each bill on an annual basis. As a utility company’s website is usually smartphone enabled, bills can be paid with a BlackBerry or an iPhone. In fact, an outstanding bill can be paid as soon as it has arrived by email.
Choose term life insurance
By setting money aside every month for term life insurance, a family won’t be liable for a huge medical bill which wipes out their entire savings. The answer to ‘Should you get 30 year term life insurance?’ is definitely yes because thousands of dollars can be awarded, such as when the policy holder develops an illness which stops them from working. The money that a family has saved over the course of several months or years won’t have to be used for paying any medical bills.