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10 Personal Finance Tips Your Budget Should Reflect

by Megan Hartman on May 14, 2012

Coming up with a solid budget is an important part of being financially secure. Your budget should represent your views regarding money and it is always important to remember that it is hard to stick with a plan that doesn’t represent your beliefs. Here are 10 finance tips that should be reflected in your budget.

  1. Dedicate At Least 10 Percent Of Your Income For Saving

    Saving money is important. Placing at least 10 percent of each paycheck into a savings account will help you weather through bad financial times.

  2. Place Another 10 Percent Into Investments

    Investing your money will help it grow over time. Stocks, bonds and government bonds are all safe investments with predictable returns.

  3. Keep Your Debt Level Low

    Make sure your debt-to-income ratio is no more than 35 percent. Anything higher than that is too risky. Start cutting back on spending if this happens.

  4. Don’t Rely On Credit Cards

    You should only have one credit card for emergencies. Keep the balance as low as possible and try to pay the balance in full each month, if possible.

  5. Plan Ahead For Large Purchases

    Keep a separate savings account for large purchases. You should start saving as soon as possible if you think you want to buy a car, house or other big-ticket item.

  6. Get Medical Coverage

    Medical bills can ruin your financial outlook. Your employer should have a health plan you can enroll in. Healthy living will cost you less money in the long run.

  7. Cap Your Discretionary Spending

    Make a firm budget each month when it comes to discretionary spending. You don’t want to deplete your savings because you went out to dinner every night.

  8. Plan Out Your Meals

    Have a set grocery budget each month. Plan out your meals as a means to keep food costs lower. You will spend less if you go to the store with a grocery list.

  9. Conserve Electricity And Fuel

    Keeping an extra stash of blankets handy can reduce heating bills. Carpooling to work each day will reduce the number of trips you make to the gas station.

  10. Properly Maintain Your Goods

    Properly maintaining your car will keep it running like new for many years. Regular maintenance can also keep the warranty valid on many items in your home. Refrigerators, televisions and computers can be replaced for free if you have a valid warranty.

Good budgeting can keep you on solid financial footing. All it takes is some planning and solid financial beliefs. Your financial habits should always be reflected in the budget you make.

Categories: Advice

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