10 Commandments of Personal Finance by stuud


									10 Commandments of Personal Finance

Here is a list of 10 rules that you need to follow in order to make your
money work for you....

1. Move your money to a savings account that pays a high rate of interest
while giving you the flexibility to withdraw your money when you need to.
There are many banks that now offer savings accounts which offer full
liquidity while paying you over 2% p.a.

2. Find a bank that offers free ATM cash withdrawals. Most banks in UAE
offer free cash withdrawals but charge a small fee if you use the UAE
Switch. If you use an ATM regularly and pay a charge for using it, it's
time to change banks.

3. Consolidate your accounts to one bank. If you have several bank
accounts, consolidating them at one bank can give you leverage to get
discounted services. The more banking you do, the more leverage you're
likely to have to negotiate on little fees and charges that can add up
over time.

4. Choose your payroll bank wisely. Banks give you much cheaper loans and
facilities if they get your payroll credited every month. Also, it allows
you to set up direct debits for all loans so you never end up paying late
payment charges or extra interest. Simply ask your bank what incentives
it gives to customers who deposit their payroll.

5. Close accounts you don't use. Banks frequently change the terms of
accounts, and an account that is forgotten or not used could very well be
drained of any money in it through newly enacted monthly fees. Even
worse, once the account hits a negative balance (due to the monthly
fees), it will incur even more fees for not having money in it.

6. Use online banking to regularly check your accounts and credit cards.
In case there are any issues, you can raise them with the bank before it
is too late and you are asked to foot the bill for some error.

7. Check the interest rates on your home loans, car loans and personal
loans every year to compare them with current rates in the market. Often,
you can save a lot by simply switching your loans to another bank.

8. Do an online financial health check-up to measure your financial
health and see if you are prepared for the future. It should be useful to
look at how much you saving versus what you need to save.

9. Choose a credit card wisely - a lot of credit cards give you good
benefits that can save you a lot of money. So check what suits your need
and take a card that meets your requirements.

10. Make a budget and stick to it. It is extremely important to create a
balanced budget (as per your financial situation) and keep a tab on where
you are spending your money. There are FREE expense trackers that you can
use for this purpose.

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