Importance Of Cmanaging And Hadling Personal Finance

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CManaging and hadling personal finances and budget will prepar you for life. Maintaining a budget is essential because it helps you be finically free to do what you like and not worry about bills and responsibly manage your money. Paying bills and house hold expenses are a necessity of life so it 's important to know, understand and manage your money correctly. Building a structure plan will help you achieve finical independence.

Credit cards are used to buy things and pay for them little by little and pay it off over time. Credit is loan used to buy but you must pay it back to the bank little by little. Some banks or issuers of credit cards may charge a small fee for their cards. They also provide "courtesy" checks to customers. Charge cards
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An Annual percentage rate (APR) is a measure is coast of credit and it 's generally expressed in a yearly interest rate. A various of credit card plans allow the issuer or bank to change your APR when the interest rate or other economical indicators also know as indexes change. Rates changes lower or raise the finance charge on your account. A grace period is the number of days you have to pay your bills in full without triggering a charge on your account. Which if that happens often it will give you bad credit after a while. This limited time only applies to new purchases and the majority of credit cards don 't offer a grace period for cash advances and balance transfers interest rates start right away and if your credit card does have a grace period the the bank or issuer will mail you the bill at least 14 days ahead of the due date so you have enough time to pay it off. Most credit card issuers charge annual membership and participation fees. Transaction fees and other charges like cash advance, to make a late payment, or exceed your credit limit are charges will be charged by the issuers. Unauthorized charges are basically if your card is stolen and it says that you bought a diamond …show more content…
Life, health, long-term disability coverage and auto are all four insurances you must have. Life insurance is basically money you leave behind for your funeral and any bills for your family to fall back in. Health insurance is to pay any hospital visits and if your employer has a health plan you should talk about it so it can be cheaper. Long term disability coverage is for is you are unable to work before you retire you have a steady income. "Yet, statistics from Social Security Administration show that three in 10 workers entering the workforce will become disabled, and will be unable to work before they reach the age of retirement." "There were over 10-million traffic accidents in the U.S in 2009 (latest available data) and 33,808 people died in motor vehicle crashes in thos accidents , according to data released by the Fatality Analysis Reporting System (FARS)." Auto insurance helps with fines after an accident and if you drive around and get into a car accident without auto insurance the fines will be the least of your worries. Not all states say you must have auto insurance but you would rather be safe then

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