Here are a few tips for keeping your financial world on track. Check them out so you won't run short before the new money comes in.
* Make a master list of expenses that don't occur monthly. Example: January, pay off Christmas bills; February, two kids' birthdays; March, car insurance; April, income tax; May, property tax; July, vacation; August, fire insurance. Don't let seasonal bills come as an unpleasant surprise.
Add up annual and semi-annual expenses and deposit one-twelfth of the total into a special savings account each month.
* Keep required payments low. If you buy a car, get a simple interest loan for a longer period of time. When cash flow is tight, pay the minimum. When it isn't, pay more or make an extra payment.
* Avoid charging to credit cards for big-ticket items such as furniture. Save something each month toward the purchase and buy for cash.
* Keep your emergency fund intact and with enough money for several months expenses. If it's absolutely necessary to borrow from it, make an agreement with yourself to pay back a certain part of the borrowed money each month.
Milton B. Yates
www.miltonyates.com
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