Personal Finance Tips for New Parents

The financial demands presented by a new addition to the family can overwhelm new parents. Costs for toys, diapers, clothing and medical expenses mount up quickly. Factor in the cost of college 18 years down the line, and it is no wonder new parents panic. Read on for tips to alleviate the worry and costs all new parents face.

1. Consider whether both parents will work outside the house. If one decides to stay home, use pregnancy time to try living on one income, and put the rest in your savings account.

2. Make up a budget if you do not already have one. Keep track of all your expenditures for one month, and decide where to make changes.

3. Lower your debt. Increase the amount you put toward credit card payments by scaling back on eating out and entertainment expenditures.

4. Create an emergency fund. If you cannot sock away three to six months’ worth of living expenses, set aside what you can.

5. Avoid expensive baby boutiques. A small indulgence now and again is fine, but does a 3-month-old really need rhinestone-encrusted shoes for $100? Before you even set up the nursery, devise a spending plan. Shop at consignment stores and yard sales, and accept hand-me-downs.

6. Make sure you have enough life insurance. Parents should seek at least five times their earnings in addition to the total amount of household debt plus college tuition. Most planners recommend term insurance for new parents. The term should last until dependents are finished college and no longer financially dependent on parents.

7. Contribute at least 10 percent to your retirement savings plan before you save for your child’s college tuition. While your child can borrow money for college, there are no loans or scholarships available for retirement. Focusing only on your child’s college tuition will leave you nothing for retirement, and you may have to rely on your child for support in old age.

8. Set up an automatic contribution for a 529 college savings plan. You can put after-tax money aside in an investment account and allow it to grow tax-deferred. The money is tax-free when you withdraw it for college expenses.

9. Buy a home in an area with a great school district. Not only will your child benefit from attending good schools, your house should appreciate over time.

10. Make a will. You should designate a guardian for your child in the event of the premature death of both parents since you do not want the court to make this decision for you. Even if you intend your child to inherit all your assets, you need to designate someone to handle your finances in the event of your death.

Joann Carlisle is a writer who looks forward to sharing her knowledge and advice with readers. For more on saving, The Financial Times offers tips for lowering monthly bills.

Helpful Personal Finance Tips

In every aspect of life, individuals need some sort of help in organization. We need help in organizing our closets, our work schedules, our play schedules – even our children’s hectic programs. That’s especially true when it comes to personal finances. Personal finances are as important as making sure we keep ourselves healthy and strong. It helps to have a history of keeping things in balance, but if not, then the earlier we find out what we do know about our own finances, the better.

Obviously, there are many ways to manage your finances that will not only get you started on the right path, but help you continue its reality. Once there, you can actually see how well it will work for you. Being on the right path implies so much more than just knowing how to balance your check book once a month. It’s being able to secure a good routine that helps grow your finances and keeps you on the straight and narrow; that ‘s important if you plan on having a future without the added burden of money woes.

The way that this can be done include knowing up front what you have to work with; how much money goes for what. Where the money goes and where it needs to go. Once these facts are established, then putting together a good working plan to track your money for the future, will be easier than you thought. Some tips include budgeting and investing wisely. When you budget using a list method, it’s so much more efficient tracking where your funds will go.

When you think about budgeting your money, you think about how that is done with a minimal amount of stress and strain. First, you need to make a list of bills that need to be paid, and how much they require on a monthly basis. Unfortunately, there are unforeseen circumstances that may arise that just can’t be helped; all the more reason for a good budget to be in place, so that some of the downfall will be offset by how well you’ve made the budget work.

Find out if there is any money that can be invested. If so, then check with an investment broker to see if what you have to invest is worth the trip. If it is substantial and it is placed correctly, then perhaps there will be enough to use toward your retirement plan.

Once you get all your ducks in a row, make sure your tax attorney or accountant is aware of your complete financial progress. They can help you better plan for the future by knowing where you are at the present. They can also give you some great advice as to how to proceed in your investments.

There are always going to be something you can do to make your personal financial portfolio look better; by taking the proper steps toward financial freedom for the future with how you manage your money now, lets everyone know that you get it!

3 Personal Finance Tips For Young Adults

It’s unfortunate that personal finance hasn’t yet turned out to be a compulsory subject in schools or colleges. So a lot of people out there are fairly naive about managing their money.

But this doesn’t actually mean that personal finance will always be way above your head! Frankly speaking, it doesn’t take too much to roll back on the right path. Just read this article to know how to craft your own strategy. Fortunately, you don’t have to be good at math to grasp the ideas!

Use self control

May be you were taught by your parents about this when you’ve in your childhood. Just in case you haven’t mastered it, it’s not too late. Almost everybody found success in life through delaying gratification. If you can do it, it’ll be easy for you to have your finances nourishing.

True, you can easily buy something on credit the moment you want, it’s a better idea to wait till you’ve saved up that much. Do you love paying interest on your new pair of shoes or jeans or a bottle of milk? Avoid putting each and every purchase on your credit card.

Take full control of your financial future

Unless you learn to smartly manage your money, others will figure out ways to easily (mis)manage it. Unfortunately, some of them are ill-intentioned (e.g. crooked commission-based, so called financial planners).

At the same time, others might be pretty well-meaning, but might be totally ignorant about what the consequences of their actions are (e.g. Grandma wants that you buy a new house despite the fact that you can at best afford one of those double-crossing adjustable-rate mortgages). So do not rely on other people’s advice. You should rather take charge of your finances and research on some basics on management of personal finance.

Know where all your money goes

When you’ve read a few books on personal finance, you’ll know the importance of keeping your expenses below your income. The finest way of doing this is – budgeting. Once you’ve realized how the seemingly negligible things are adding up at the end of the month, you’ll know how to control that.

Same goes for recurring expenses. If you avoid wasting money on the luxury apartment now, chances are high that you’ll be capable of affording a great condo or a new home even before you know it.

Personal Finance Tips For Families

Family expenses have been hit hard in the recent times of recession and low growth. This has led to an increased number of personal bankruptcies. In order to avoid such situations in your life you need to plan astutely and manage your finances very carefully. This article will supply a few tips for families on how they can administer their finances and save for tough times.

You need to stick together. The entire family must sit and mutually plan a feasible budget. Each family member must understand their responsibilities and recognize that their contribution is important. The elder members in the family must set examples for the younger ones. You can start by cutting your personal expenses and spend less on unnecessary things.

Plan sensibly for all household expenses and other needs. There must be some balance between your income and expenditure. Review your savings from time to time and try to increase them. Before investing, find the best plan to give you maximum returns in the long run.

If you find that your loan has exceeded your financial limits and you are on the verge of going bankrupt, then it is advisable to consolidate your debt and negotiate with creditors for easy or a lower payment amount on your installments so that you can repay them without accumulating a bad credit rating.

Everyone in the family should contribute by keeping a check on the electricity, gas and phone bills. Even saving small amounts on them will help your budget considerably. Remember that in a family, you can not cut on the basic needs but working stringently and compromising little on luxuries can do wonders for your savings.

It is a collective effort; even children need to understand the significance of savings and probably reduce their expenditures. Those who are big enough to work part time can contribute to the family income by taking up few jobs in their spare time.

Do not fall into Bankruptcy. It will affect the family. However, if it is inevitable, be sure to look at Chapter 7 Exemptions so that you can minimize the losses. So, prevent this from happening, visit Joseph’s website as he covers personal finance tips in greater detail.

5 Personal Finance Tips For Parents

As we grow older our responsibilities also increase and once you become parents you have to deal with them pretty seriously. Taking care of children, providing them with the right education and other facilities can lead to some heavy financial burden for parents. In this case what can you do? What is most important is to prioritize your responsibilities as parents and determine the financial support you need to accomplish it. This article will cover a few tips that can help you manage your personal finances diligently.

1. First of all understand that now you have some serious duties to perform, hence you cannot act as if you are a 20 year old and make liberal financial decisions. You need to create a balance between your instantaneous and long term needs so that you can invest wisely. Manage your income properly and keep a check on spending and investments.

2. Plan for your child’s education early and keep funds aside for it. You will need to create a budget and estimate the finances that you will require for his schooling and higher education. Invest accordingly in schemes and investment plans that will have high returns when you require them most for your child’s education.

3. It is very common that people when they grow old tend to invest in property and buy a house. It is certainly one of your basic needs and you may take some loan for the same. Adhere strictly to your budget and repay loans in time so that you can avoid getting a bad credit rating or bankruptcy. Remember by simply paying the minimum due you are not doing any good. Try and negotiate with the creditors for simpler installments.

4. Supervise your credit card payments and pay your credit bills in time to avoid heavy interest.

5. Remember that with children you also need some handy cash for few unplanned expenses like medical bills etc which may crop up anytime.