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Confronting Your Home Finances

May 28, 2011 · 1 comment

in Personal Finance

The following is a guest post that was written on behalf of HSBC Credit Cards

Do you feel overwhelmed by simple financial issues around the home?  How do you deal with such issues?  Do you just put your bills in a pile and deal with them when you feel like it?  Or, do you pay all your bills instantly on line?

If you fall in to the former category, remember, your home finance issues won’t go away magically.  This is one area where out of sight should NOT be out of mind.  However, finances can be a very stressful topic, and many people continue to ignore their dire financial situation.  Next thing you know, late fees and interest charges have snowballed, and the situation just gets more depressing.

Money is, sadly, one of the most important things in life, and it’s hard to be happy unless your finances are in order.  (Money may not buy happiness, but lack of money sure can buy sadness, fear, stress and a whole bunch of other negative emotions.)  To get your financial situation sorted out, you need to spend some time looking after your home finances.  It may be an unpleasant task, but it must be done.  Part of getting your financial house in order may involve creating a budget, setting up an Excel spreadsheet to track expenses, or even obtaining a Visa credit card.  Be wary of your credit card though if you are struggling financially.  If that is the case, then the credit card should only be used as a last resort for essential items, not discretionary ones.

Good financial planning takes work, yet you can’t do it effectively without the right tools. To look after your money you will need a good bank account with an institution you can trust, a credit card for unexpected purchases, and somewhere to save money at a good interest rate.  These accounts will ensure you can pay for everything, while still creating a nest egg for tougher times.

You also need to take careful stock of how much you spend each week – count your expenses and see how much it totals, then see if that is affordable over the long run.  If not, you will have to cut down on the little things in order to save money – it’s amazing how much you can save by eliminating everyday items.

Finally, you need to come up with a financial plan which will see you save a significant amount of money each month.  This can be tough as it is often hard to just get by, let alone have enough left over for savings. Yet it is very important to have a backup fund for your retirement or any unforeseen circumstances.

If the thought of home finances makes your stomach turn because you know you are in bad shape, then you need to address your financial issues immediately.  Ignorance is not  bliss, and you need to face the music before you end up with creditors stalking you.  Also, consider talking with your mortgage company and other creditors if you are struggling to make your payments.  You might be able to work out a plan you can afford, and your mind will be put at ease because you hopefully won’t be living every day in financial fear.

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{ 1 comment… read it below or add one }

common sense money May 30, 2011 at 2:45 pm

It’s always painful to take an honest look at our finances and make a budget.

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