Personal Finance Do's And Don'ts

Every single one of us-no matter our location, age,when you pick up that neat velour Elvis on the
gender, hair color, family background or race-has toboardwalk.
manage our personal finances.DON'T use your local bank - unless you absolutely
For some, it's an exciting passion, a never-endinghave to. Check out all available credit unions first. In
game of "how much can I accumulate in one lifetime".most cases, they'll have better rates and more
For others, it's just part of life, something that needsfriendly policies on everything from fees to lending
to be dealt with but doesn't border on obsession.practices. Each dollar you deposit buys you a share,
And finally, for many of us, personal finance isor membership, in the credit union. So instead of
nothing but drudgery at best and an emotional triggerbeing a customer you're actually a "member". Like the
at worst.ad says, membership has its privileges.
Fortunately, there are a few simple rules that will helpDO use a debit card with protection. Before you use
anyone stay on track, and reduce the amount ofa debit card, make sure your checking account is
stress involved when it comes to making suresafe in case you lose your card or it's somehow
personal finances are well in order.stolen. Also make sure you have the right to reverse
DO get organized. Even if you're a "messy", this Do ischarges in case merchants don't provide the goods
crucial. You'll miss important due dates, pay exorbitantor services you purchased.
late fees and possibly get into serious debt (or creditDON'T buy a new car. Considering the fact that new
trouble) if you don't have a handle on what you owecars depreciate thousands of dollars as soon as you
and when you owe it. A simple rule of thumb: thedrive them off the lot, can anyone explain why
messier you are, the simpler your system.buying a new car would be a good idea?
DO draw up a spending plan. Every dollar that comesDO run numbers before every major financial
into your household goes out in one way, shape ordecision. Conventional wisdom works-most of the
form, even if it's to a savings account. Know wheretime. But there are always exceptions. For example,
your money's coming in and where it's going. Withoutin most cases, it doesn't make sense to borrow from
this information, you can't possibly make wise financiala 401(k). But there are instances where it's financially
choices.beneficial. You'll hear it preached from the rooftops
Overwhelmed by the thought? Ask a financiallythat you shouldn't use a home equity loan to pay off
responsible friend or relative (whom you trust) to docredit cards, or that debt consolidation loans are
it for you. You can't argue with success-and they cannothing but trouble. But if you're financially responsible
help you make the hard decisions when it comes toand ran into some tough circumstances, a HELOC or
having to "trim" spending in certain areas.debt consolidation could be a lifesaver. Search online
DON'T cut out all your fun. Decide, along with yourfor calculators that will help clarify the situation.
family, what's most important to you in terms ofNumbers don't lie.
living a happy life. Then divide up your budgetAnd finally, perhaps the most important "Do" of all...
accordingly. If your family really enjoys eating out,DO remember that personal finance is just
plan for it. Just keep in mind you may have to spendthat-personal. Everyone loves to give advice, and
a lot less on groceries or clothing. If none of us areeveryone loves to share their opinions. What worked
the same then our spending plans shouldn't be thefor your mom and dad may not work for you. On
same. If you love to read then cutting back on cablethe other hand, they probably have years of wisdom
TV wouldn't be a problem. If you love to watchyou can draw from.
sports, then cutting back on cable TV would be aConsider your personal finances an extension of who
serious problem.you are and where you're going. Study the topic, and
DO allow impulse spending. Yup, you read it correctly.take the time to develop your own unique strategies
Unless you plan for a certain amount ofwhen it comes to saving, spending and investing.
miscellaneous, unexpected expenses in your spendingDuring this information age there's never been a
plan, you'll always feel as though you're blowing yourbetter time to find the facts you need, in record
budget when you pick up items you weren't planningtime.
to buy. Just like anything else, give yourself aEveryone has finances. Get personal when it comes
"buffer". A side benefit: you get to skip the guiltto yours.