These days, in our world of credit cards, mortgages and the loom of crushing debt, it’s so important to know how to manage personal finance so we don’t get caught up in that trap. But we often hear different advice from so many different people, each with different and often conflicting ideas on how we should manage our personal finances. The truth is, smart finance tips aren’t hard to follow. Read on to learn those personal finance tips that we recommend the most:
Get a fixed rate home loan
For many people, home mortgages are a financial crutch which prevents them from living with financial freedom. Home loans can incur skyrocketing interest rates, and if you’re not careful these can completely decimate your savings. So when you’re signing up for a mortgage, make sure that you’re signing a fixed rate home loan. Fixed rate home loans allow you to budget more effectively, because you won’t be shocked from rising rates.
Set a weekly budget for groceries
You might be surprised, but grocery shopping can be one of the highest expenditures in many homes. It might not seem like much when you go out to stock up on Sunday night, but those mini trips throughout the week to pick up a few ingredients, combined with those unnecessary extras thrown in to keep the kids from whining, can really add up. So set yourself a budget to stick with, that you know will allow you to enjoy the other areas of your life.
See where you can cut back
Maintaining good personal finance doesn’t mean that you’re stingy with yourself or your family. It simply means that you recognize the difference between what’s necessary, what’s enjoyable and what you really don’t need. If you find yourself buying a few expensive lattes per day, try to cut one out. Other habits you might not notice at first can end up costing you over the long term, so see where you can cut back without reducing your quality of life too much.
Teach your kids about personal finance
If you can teach your kids the skills they’ll need to learn later in life, this will pay off greatly in the long run. This could mean the difference between self-sustaining grown children, and those who still need handouts late into their 20’s. Give your kids a modest allowance and teach them the ways that they can earn money around the house. Let them know that once their budget is spent, they need to find ways to earn more rather than just getting money handed out to them.