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spreading your own umbrella personal finance basics for living on your own

By Lena / June 23, 2012

Spreading Your Own Umbrella: Personal Finance Basics For Living On Your Own

Taking responsibility for your affairs is an exciting prospect when you start living on your own. Your finances are one area where you want to make smart choices right from the beginning. If you behave foolishly with your money, there may not be anyone there to help bail you out. Take a look at these quick finance tips so you can start cultivating good financial habits.

Get a realistic idea of the limitations your income puts on you. You want to avoid living beyond your means, so you need to know exactly where they are. Take the time to calculate a rough estimate of the money you have left in your monthly budget after all of your bills are paid; you should avoid spending more than this amount without careful consideration.

Advertising and society in general will pressure you to make hasty purchasing decisions. Resist these influences and teach yourself never to buy without giving the purchase the consideration it deserves. You may find that many potential purchases are not as necessary as they seem at first glance.

It is better to save up before big expenditures than to use credit to cover impulsive purchases. You will find that the time it takes to save the necessary money allows you to make absolutely certain you need the item you intend to buy.

Economize on regular purchases wherever possible. Food and household necessities (e.g. cleaning supplies) are expenses that are almost always cheaper when you buy in bulk. Spend some time on your cooking skills, if necessary, to learn how to feed yourself with foods that can be stored for a long period.

You can also save money on utility bills if you expend a little effort. Make sure that you are not spending money to power appliances when they are not being used. Minimize your heating and air conditioning bills by dressing appropriately for the season and being conservative with the thermostat.

You do not have to be making tons of money to start saving. Even a modest monthly contribution to a savings account will help to build up an excellent reserve fund. Consider setting up an automatic savings deduction to be taken whenever you deposit a paycheck.

Paying your bills on time is a fundamental part of being responsible with your money. If you are late with your payments, you are not only subjecting yourself to needless penalties, you are also hurting your credit score.

Thanks to the Internet, it is easy to keep very close tabs on your money. You will find it takes very little time to check your bank account for fresh activity every day. If you see activity you cannot explain, contact your bank immediately.

Exercise extreme care with your financial information and online passwords. The easiest way to deal with identity theft is to minimize your vulnerability to it. You should not access financial websites from a public computer, and you should thoroughly deface any correspondence with financial data on it before you throw it away.

Living by yourself is a challenge, but it is one that anyone can rise to with the right preparations. If you make use of the financial advice you’ve just read over, you should have a great head start on taking care of your money. Just remember to exercise common sense and avoid rushing into any decision that could have an impact on your finances.

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Lena

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