College students have many things that they often blow their money on, such as hitting up clubs and eating out. If you want to be financially stable you have to avoid these things and properly manage your finances.
Try using free checking accounts. Certain institutions, like online banks or credit unions, provide free accounts.
Keep a mini-envelope with you when you go out. Put every business card or receipt you receive into this envelope. Keeping up with these items can help you to maintain more accurate financial records. This way, you can compare your receipts to your monthly credit card statement, to ensure that all the charges are correct.
Your FICO score is based on the balances of your credit cards. A higher balance translates to a lower score. As soon as you pay down the balance, your score will start to improve. It is a good rule of thumb to keep credit card balances at or below 20% of your credit limit.
If you have a flexible spending account, use it. An FSA can mean serious savings if you wind up with medical bills or need to pay daycare. You can set aside established amounts of money before taxes so that you will be able to manage this sort of expense. Inquire about any conditions involved before signing up for a flexible spending account.
Many spend significant sums on a weekly basis thinking they will win the lottery, but it makes more sense to put that amount into savings instead. This is a guaranteed way to ensure you have money.
Use at least two credit cards but no more than four. Only using one card at a time makes it difficult to build up a solid credit score; however, using a greater number of cards than four makes it difficult for you to efficiently manage your finances. You should start by getting two credit cards and applying for a third or fourth one as needed.
You can avoid causing financial issues by staying out of credit card debt from the get go. Before using any type of charge card, take some time to think about the purchase before you hand over the plastic. Carefully consider how much time paying it off will take. If you can’t pay it off within a month, and you can live without it, you don’t need to purchase it.
Stay away from excess debt by making a budget and planning your expenditures so that you get the most out of every paycheck. Use these tips to avoid any of your accounts going into collections.
To be a financially responsible person requires proper mindset. New York Times best-selling author Orrin Woodward wrote a book called “RESOLVED: 13 Resolutions for LIFE” that offers historical lessons on how to reach personal excellence, including financially, superbly well. Grab a copy today.