Money Saving Expert

2017/11/10

Becoming a money saving expert can help when it comes to keeping clean credit. Most people start getting into financial woes as a result of having to borrow money. It does not take much for your life to spin out of control when you have multiple cash loans, peaked out credit cards and an impulsive spending behavior. This page will provide you with some expert credit tips and money advice that anyone can adopt as a part of their overall strategy for protecting their credit. You will not only find a few good ways to save money, but without a plan to grow your money through for example, a high interest savings account or investing in a money market fund that has stable growth rates, you won’t have the cash you need in case of an emergency.

For many families and single parents it only takes one unexpected thing to go wrong and their finances are wrecked for the remainder of the month. Sometimes the effect tends to cause them to get behind in for several months and unfortunately, a lot of people never get caught up. This is how single well intentioned families and single moms end up destroying their credit rating and one day wake up saying, “I need financial help”. When you reach this point, you will eventually need the help of an expert credit counselor to help recover.

In order to become an expert at saving money, you have to get a grip on where your cash is going. This means you should start a financial journal or record of your monthly expenditures so you can track and monitor the amount of cash that is coming in compared to the money that is being spent. This is what forms the foundation of a good money savings expert before you start building on solid financial principles of saving money with high interest savings accounts.

By starting a financial journal for your personal finances, you will begin to identify spending patterns that you never knew existed. You will also come to understand why it may seem difficult for you to save money, even though you have a desire to. This exercise will help you take the pulse of your personal finances to determine if you are on the right course to reaching your goals. The goals can be either to ultimately get out of debt or to start building your savings account. Once you start feeling like you are making progress, you will begin to feel like a real expert and your confidence and future outlook will soar. If you are a single female with children, this exercise will help you to become a money saving mom very fast. This will also place you on the path to learning how to save money since you will start looking for additional cost cutting measures.

Below I listed a few tips that you can use as a starting point to help you create a financial journal. While these are just ideas, by all means feel free to reach out for financial help if you need to. What follows are simple targets that are regarded by financial experts as healthy percentages for monthly expenses.

Family household debt. Credit and debt counselors will always advise you to never spend more that 15% of your net income. This applies to consumer purchases, credit card purchases (recreation, dining, and car payments), bank loans or any type of debt that will exceed this healthy percentage.

Mortgage or rent. Strive to stay within the range of 35% – 37% if possible. This applies to the total costs for you to live and maintain your current residence. Items that come to mind are mortgage payments, renters insurance, maintenance costs, and utility expenses.

Transportation. Financial advisors say that the average household should spend no more than 20% of their net income for transportation related expenses. This includes you car payments and insurance, monthly fuel costs and maintenance expenses. (Sometimes this is a little hard for single moms who are trying to stretch every dollar to make ends meet.)

Savings account. A person should strive to save a minimum of 10% of their net income each month in an account. You may have to shop around for the best interest rates on savings accounts in your community to discover which has the best savings rates of return for your money.

How a Certified Financial Planner Can Help

I realize that for many of you, reaching these targets many be way out of reach because of your current financial condition. The idea here is to get started on the path to restructuring your debts in a way that makes it manageable. You may need the assistance of a debt help program to help you pull your way out of the circumstance. There are certified financial planners that will come to your aide if you in all areas that seem to keep you financially bound. As an example, if you cannot reach the percentage goals above due to deep credit card debt, these experts can help you get into a credit card debt relief program to help you arrange a settlement plan through consumer credit consolidation programs that are widely popular as a means of mitigating credit debt.

An independent financial advisor can do more than help you alleviate your current credit card debt; they are experts at forming plans so you can save up to 10% or more of your income over the span of your life. This is defined as retirement planning, something of which you should ponder.  If you decide to use the services of a financial planning advisor, make sure they are licensed and certified.


Money Saving Expert

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