5 Personal Finance Tips Used by Accounting Professionals

Written by on August 3, 2012 in Money - No comments | Print this page

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cc licensed flickr photo shared by Philip Taylor PT

When you want to effectively manage your finances, there is no better professional to consult than an accountant. Accountants manage hundreds of thousands of dollars for businesses on a daily basis. They are also very astute in managing the finances of individuals. If you want to know how to manage your personal finances, then take note of these tips from accountants. By following these tips, you will not get in over your head and will be able to start building a great nest egg or savings.

1. Let Your Friends and Family Know About Your Financial Situation

When you are trying to stick to a budget, one of the most frustrating experiences can be when friends and family ask you to go out to eat. You likely do not have an extra forty or fifty dollars to spend on a meal if you are on a budget. If you let your friends and family know that you are sticking to a budget and struggling to make ends meet, then they will respect you and avoid asking you out to these types of dinner dates. You will feel less pressured to attend these events in the long run, and they will understand why you decline an invitation every now and then.

2. Put Money Aside for Emergencies

When you have tons of credit card debt, you may be tempted to get rid of it as soon as possible. Experts say that this is not always the wisest decision. Sometimes, the wisest choice is to put aside money for any emergency situations that arise as you are trying to pay off your credit cards. If you are able to cover the cost of a car repair or other expense, then you will not be stuck with even more debt. People will often make the problem of paying off credit cards, and then they may be stuck having to take out a cash advance to cover other costs. Cash advances tend to have very high interest rates, so it is best to avoid them.


3. Save Funds in a Money Market Account

Money markets tend to have higher interest rates than savings accounts. By putting your funds in a money market, you can earn a few extra dollars every month. You may also be able to take advantage of an online promotion and obtain a few hundred dollars extra in your account.

4. Stay Away from Credit Repair Counselors

Credit repair counselors will often hurt you more than they can help you. Credit repair counselors will typically charge you high fees for their services. It is in your best interest to deal with credit card debt on your own or decide to file for bankruptcy if you are knee deep in debt. Credit repair counselors are known for taking advantage of desperate consumers.

5. Avoid Spending on Credit Cards

If you want to avoid financial issues in the first place, then avoid spending on credit cards. Spending on credit cards will only cause you to get into a pattern of racking up debt. You can stay away from debt when you decide to pay for things in cash instead. If you do use a credit card to make a purchase, then get in the habit of paying off your credit cards every month. This will teach you to only spend what money you have in an account.

It is essential to be conscious of your financial situation and take active steps in managing it. Care about your finances, and you may be able to become debt-free sooner than you could think possible.

This is a guest post.  Andy Simmons is a CPA and guest author at www.bestaccountingschools.net, a site with information on top-rated accounting degree programs.

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