Six Personal Finance/Money Tips

This sounds like a common sense statement; however, millions of people spend more than they earn. What's more, these persons have the audacity to question how their credit card debt got out-of-hand. People who spend more than they earn are likely using credit cards to receive instant gratification. The idea of saving for a major purchase is obsolete. Today, many people simply whip out the credit card and buy many high ticketed items such as designer clothes, electronics, vacations, etc.

2. Avoid Financial Scams

Everyone wants to "get rich quick." Consumers are constantly being warned about different money scams. Unfortunately, many people ignore the warnings and seek ways to earn a quick buck with minimum work. Unless you happen to inherit a fortune, or receive a nice payout from a lawsuit, you probably won't get rich quick. Certain scams are purposed to rip off unwary participants of several thousands of dollars or ruin a good credit rating.

3. Pays Bills on Time

If you want to keep the creditors off your back and keep a decent credit score, pay your bills on time each month. Setbacks can happen. To avoid problems, make an effort to live within a budget, and stay away from impulsive spending. If financial hardships arise, contact your creditors immediately, and arrange a payment plan or setup new payment terms.

4. Ask for a Raise

If you need more money, ask for a raise. Your boss can either grant the request or deny the request. However, if you have worked for the company for a long period, and you have a history of being productive, your company is more likely to consider the proposition - especially if they can't afford to lose you. If the request for a raise is approved, use the money wisely. Pay off credit card debts or start a cash savings account.

5. Save at Least $500

According to a recent news report, persons with as little as $2,000 in cash savings can consider themselves rich. Since personal incomes are significantly less than the cost of living, many people have trouble creating a nest egg. Even if you can't put away $2,000, try and save $500.

6. Stay Away from Payday Loans

Unless you like personal loans with extremely high interest rates and short repayment periods, avoid payday lenders. These loan companies advertise "quick cash" within minutes. Cash advance loans are ideal for persons with bad credit, or individuals who need cash until their next paycheck. On the flip side, these lenders charge up to $30 per $100 borrowed. If you are unable to repay the payday loan within 14 days, the lender extends the loan, and the fees double!