How to Get a Handle on Personal Finance the Intelligent Way*

Image Source Pixabay

There comes a time in many people’s lives when they realize that their finances have just become out of control. Try as they might, they just can’t seem to set a budget and stick to it. For one reason or another, something always goes awry and by the end of the year they are no better off than they were when they created that budget at the beginning. Actually, part of the problem is that they skimp where they should be spending and spend where they should be skimping! Let’s take a look at how to get a handle on personal finances the intelligent way in order to try and implement a simple system of financial control in order to help one make wiser and more beneficial financial decisions.

You Get What You Pay For

Sometimes, in an effort to save money, we opt for cheaper products. This isn’t always a wise move to make. When it comes to quality, you can’t afford not to buy the higher ticket items. Mattresses are a good example. If you don’t buy the best mattress you can afford, you will be buying a new one next year or the year after that. Not only do they wear out quickly, but they don’t offer the comfort and support you need.
Now then, having said that, there is no reason why you can’t get money-saving tips on review sites like The Mattress Nerd. Learn how to physically check out mattresses in local retailers and then order the mattress of your choice at a lower price online. Just remember, some things necessitate the highest quality you can afford and mattresses fall within that lot.

Separate the Wants From the Needs

Yes, you are told this time and again, but here you will be getting a new slant on this. No one can work so many hours without treating themselves once in a while. It’s important to allow for some of those ‘wants’ so that you don’t feel deprived after all that hard work. It’s okay to be a little self-indulgent once in a while if it will prevent you from going on a shopping binge later on! That will definitely ruin your budget. Instead, set aside a “Wants,” or “Bucket List” budget so that you have money on hand to treat yourself when the occasion calls for it.
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Set Aside an Emergency Fund

This is a completely separate amount from the ‘Wants’ budget. This money will be placed in savings for that rainy day you know is coming. They always do, don’t they? From dishwashers that break down necessitating repair/replacement to unexpected high monthly utility bills, if you keep a small savings account, you won’t need to beg, borrow or steal from Peter to pay Paul when those emergencies crop up. Just a little prior foresight and planning can go a long way to improving your financial situation.
You have probably noticed that nothing was said about food, clothes, monthly expenses and other recurring bills. Those are a given and will always be on any budget. The intelligent budget accounts for the above mentioned things which many people aren’t aware of or simply don’t plan on. If you want to finally get a handle on your personal finance, then it’s important to look at what you haven’t been doing all along. That’s the healthier approach in a nutshell.

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