A guide to managing your personal finances

Does the thought of organising your finances frustrate you? Does it seem like an impossible task? Managing your personal finances is very important as simple things like late fees and interest on credit cards add up and can put a significant dent in your savings. This could result in unnecessary financial pressure. Regardless of whether you are a college student, professional, home-maker or retiree, good personal financial management is necessary.

Credit cards They are easy to use and we often tend to make impulse buys using them. How many credit cards do you have? Try categorising your credit cards. Try to minimise the number of cards you have - in this way, it’s easier to keep track and you don’t have to pay any additional fees. It’s better to have one MasterCard, a VISA card, and another spare emergency card. Next, look at the interest accumulating on the cards you have maxed or nearly maxed. Credit card interest rates can go extremely high if you have missed a payment, or have a balance for more than a few months. The policy is normally "55 days' interest free", but this can vary from bank to bank. Bank accounts
If you have accounts in more than one bank, choose the bank that you have the longest relationship with, or the one that provides you with your credit cards, mortgages, student loans etc. Then, consolidate all the funds into a single bank. If you have more than two checking accounts, consolidate everything into two accounts, one for monthly use and another with your emergency fund. In the emergency fund account, try to keep at least $500. Online banking Most banks have online banking and it is usually free of charge. Use this service to settle all your utility bills, credit card minimum payments, student loans, mortgage payments, etc. In that way, you can avoid late fees and interest, and can use online banking on weekends. Putting it all together At the end of the month, list all the bills you have paid and total the amounts. This will give you an idea of your expenses, and how and when you can start your savings plan. This is a basic round-up of your personal finances. Take your time; you do not need to make drastic changes. The first week, organise your credit cards. The next week, consolidate your accounts and keep track of your withdrawals.