Thursday, May 17, 2007

Getting Money Wise

While having my summer general house cleaning done I came across this little booklet about Getting Money Wise, it was a free supplement from a Good Housekeeping Magazine which I bought a few years ago.

I knew I read it all before and reading it again today gave me a new perspective on my family’s immediate and future plans. My son will start his schooling this year and tuition fees and maintenance like the school bus, uniforms etc, need to be included in the family budget. I have plans for buying equipments for my home business and they are not cheap plus I am looking into having a store in the mall. We plan to purchase a house next year. Big Dreams, Big Investments and Big MONEY.

The booklet really helped me check if our financial plans are feasible or not. Here are some tips from the booklet I want to share.

Get Loan–Savvy
If you plan to get a loan here are guide questions you should ask yourselves before getting one.

  1. Do I really need to borrow money?
  2. How much money should I borrow?
  3. Where should I borrow?
  4. How will I pay back the loan?
  5. What should I use as collateral?

Before taking a loan do your homework, shop around for the most reasonable bank interest rates and best rate protection plan. Do not borrow on a whim, there should be a need, because it will cost you more money to pay back the loan.

Being Swipe/Credit Card Smart

  1. Choose the best card for you
  2. Set a budget and work within it. Don’t fall into the trap of buying things just because they are on sale. Schedule when to best use your card without going over your personal limit. Use your card responsibly. Budgeting helps you organize your spending.
  3. Check out offers made to you. Read your statement of accounts for ongoing deals and promotions that may give you better value for your money.
  4. Never skip payment to avoid late payments and fees and finance charge
  5. Pay at least the minimum payment due. But don't make it a habit. The minimun payment is not the only anout you owe. You will be charged interest on the portion of the balance that you don't pay by the due date.
  6. Spend as you earn. Don’t overextend your credit card limit. Don’t spend more than what you can repay.

We have three credit cards and they are included in our monthly budget, believe me they eat a lot of the family budget. But we use them for special purposes like installment of big items like my video camera, aircondition unit and vacation packages (that's what the installment madness is for) and for emergencies like hospitalization down payments. We have a card for the household groceries and minor expenses.

I believed that I use them wisely and using them on big purchases is planned into the family budget. In choosing the right card for you look for special features of the credit card, there are cards that have hospitalization insurance, a drugstore card or a card specially intended for car owners. Instant Internet Remittances using Credit Card. One of our cards even have an electronic card specially intended for online payment use.

3 comments:

lastAutumn said...

Saving, saving, saving... Thousands of rules for saving have been created, but no one can ever help you when you are really in need of money. I think there is no need in having more than 1 credit card, one of those low APR cards to pay the balamce monthly, as carrying balances is costly enough. I cancelled all my cards except Chase Platinum Visa and use it very occasionally. Maybe, you'd better cancel your cards, too, to use cash and 1 card for emergencies instead?

joan_pinon said...

Thank you for the advise. I am in the process of really evaluating our finances and a friend also advised me to let go of my credit cards so I am in the process of just picking one to retain.

Nina Lumberio said...

hi, below is a link for an article about credit card and the truth about 0%. Hope this helps.

http://www.inquirerbloggers.net/moneysmarts/2007/05/09/the-truth-behind-0-interest-promos/

http://www.inquirerbloggers.net/moneysmarts/2007/04/30/credit-cards-the-true-cost-of-paying-only-the-minimum/