Government debt. Recession. Wall Street. Gas. Banks charging you to use your own money.
All financial choices we hear about daily in the news. In case you want a prime example of what not to do, we even see our government making decisions that keeps growing the national debt and even hurts US credit rating approval.
I am writing this mainly for a young crowd but here are some financial tips, that while may seem obvious, will help you prosper in a drout.
- Start saving now. Even if you can not do much, $20 a month adds up to $240 a year. And that does not include interest if you invest it or put it in a savings account.
- Search for banks and even let them search you. All banks want to get you as a customer but do your reasearch and always ask this question: What can you offer me the other bank will not offer me down the street? There are also special banks for different groups of the population like military, teachers, and even single people that may better suit your interests.
- We all like to have fun. New clothes. Night on the town. A trip or two. And a new car. One word. Budget. Set limits on new clothes, the amount you can spend on the town, and even budget that new car. Keep track of all income and expenses and adjust your spending habits to satisfy your goals.
- Borrow sparingly. It is good to borrow money because it builds your credit rating but make sure the monthy payments and building interest will not put your wallet in a tight pinch. Because if your wallet becomes pinched, it may actually hurt your credit score than help it.
- Choose credit card companies carefully. Each card will compete for your business. Keep looking for best interest rates and rewards. It is always good to set a reasonable limit on the card that will keep you financially sound and will not allow you to spend over that amount.
- One to three credit lines including loans is the recommended amount to have open by many financial analysts. Too many hurt that score and when you go to buy a house, you will regret that decision.
- Invest. Open up short term, long term, and medium term investments to keep you financially sound while maintaining a bank savings account.
- Bargin shop and look for the best deal. Use coupons, go during promotional events, price search, and ask around. It is well worth your time.
- Pay more than the minimum payment on loans. Minimum payments are the trap. They are kept as low as possible to where the company still earns profit but will keep you in as long as possible to keep building on interest profit.Try paying twice as much as the amount due each month.
- Cut those unneeded expenses. Do you really need the best package of cable? How about that cell phone plan - any unused minutes each month? Cut wastefulness out of your.life.
Be smart and make the best decision based on your situation. Always try to pay for things without the need for borrowing and always plan.
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