PERSONAL FINANCE SOFTWARE

If you haven't curtailed your bad spending practices and haven't stuck to a budget, you're putting your home in jeopardy. Unless you've already demonstratedboth a willingness and an ability to spend only what is necessary, don't put your home at risk. If you think that not having much to spend is a drag, think of what a drag it would be to be homeless and not have much to spend.
If you decide that you're ready for a home equity loan and feel certain that you're not risking more than you want to lose, go ahead and get the loan. But get only as much as you need to cover your debts. Don't get anything extra. Refuse to give in to the temptation to buy something else with money that you may see as being there for the spending. It's not. You have to pay it back. A home equity loan is a less expensive debt than a credit card, but it's not "found money." It's plain-old debt in a different disguise. If, on the other hand, your total available equity doesn't cover all your debts - well, I think you know what to do by now .Pay off those credit cards, the highest ones first.

After you've opened a checking account, orchanged your account to a bank that offers a better deal, there are a few other things tokeep in mind. One simple, but important, ruleis to keep your checkbook in a safe place and report it immediately if it's lost or stolen.
You must keep track of how much money youhave in your account. If you don't, you riskbouncing a check. The average fee for bouncing a check these days is around $25 per check, making it a very expensive mistake.Bounce three checks, you just wasted $75.The average interest paid onchecking accounts these days isapproximately 2 percent, accordingto www.bankrate.corn, a Web site that provides rates from banks acrossthe country.

There are some good software programs to help you balance your checkbook and take care of otherbasic financial tasks. Check out Quicken Basic 98 or Microsoft Money. Orlook in your library orlocal bookstore for books to help in these areas.Record every transaction immediately, or sooner or later, you'll forget about one. Record the checks you write as well as ATMand debit card transactions. Some people find it more convenient to stick a Post-it note on the outside of their checkbook and write down the basic information as soon as they write the check. Then, the information can be recorded in the checkbook when there's more time.

Even if you don't balance your checkbook to the penny, which is what you should do, make sure you know as accurately as possible how much money you have. Always lookover your statement each month and confirm all deposits, ATMtransactions, and withdrawals. If you notice something that doesn't look right, call your bank rightaway. Banks do make mistakes, and they're not always in your favor.Balancing a checkbook requires you to first listevery transaction made during the month.You add deposits to your balance, subtract outchecks, and remember every ATMor debit card transaction. At month end you compare what you have with what the bank has on theirstatement. Should be the same. The easiest way I've found is by keeping the checkbook on the computer.

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