Life does not offer us a lot of do-overs unless you are a contestant in a reality TV that the producers keep inviting back. (“Boston Rob is on Survivor again?”)
Instead of having a do-over, what if life could give you an opportunity to go back to your younger ages and give you some financial advice? Maybe to help you prevent money blunder that you have made. What would you say about that?
Here are some likely top 10 tips. These are the most tips that people who are elderly would wish they could give to themselves when they were younger. This is before they are wound up and kicking themselves over money later in life. Its called the Money Blunder.
10 Start saving for your retirement ASAP
You will want to open an account for retirement and put away your investments into it. If you are given a chance by your boss to save 401(k) grab the opportunity. Youth goes quick like an underground rail.
Your savings will start to grow through investments that you choose. You will then start taking the money when you turn 59 and a half which to many is a long way away. There will be penalties to face if you start withdrawing your cash too early.
9 Don’t treat yourself so much
When you earn more money, there may be felt to spend more on little presents for yourself for the achievement. You deserve to have the nice things! Right?
But do not give in so much to the urge to splurge! Making an excessive spending habit with money can make you feel empty.
Buying a lot of stuff does not buy you any happiness. Cornell University Researchers have found that experiences in life bring more and long-term contentment in life. Save your income for that lifetime trip instead of blowing it on frivolous things.
8 Be careful with credit cards
Credit card companies cannot make money from someone who has kept their cards paid up. The card issuers get profit when consumers carry balances and are forced to pay interests and late fees.
You should use your card for purchases you know can pay off within a month. You should even keep your credit card spending to an absolute minimum, even if you can pay the bills timely.
7 Make paying all your bills a priority
Even when you have fewer funds, you will need to ensure that you pay all of your bills before anything else arises. This will require you to stretch your every penny to meet the obligations you have.
You may even sacrifice some of the valid expenses you have to get all of your bills paid.
6 Turn your savings into a source of income
You should make more money with the money you put into savings. Grow the money you have through what is called the miracle of compounding- your interest will start earning interest too.
That does not mean that you now park all the savings you have in a simple low-interest savings account. You should have some risk. Index funds, certificates, and bonds of deposit give varying degrees of safety, and the returns are reliable.
You can make a successful investment without throwing all the money you have at a startup or cryptocurrency. A trusted financial adviser can give you tips and help in deciding which investment is best for you.
5 Don’t ignore life insurance
A survey in 2017 found that more than a third of the U.S adults do not have life insurance. Don’t ever fall in such a group.
Life insurance is not only necessary in protecting the lives of your loved ones that you may live behind, but it is also an excellent tool to help you save.
Some policies will give you a cash value savings portion that grows through investment or interest. You can get your money tax free, up to an amount that is equal to the premiums paid into that policy.
4 Learn to cook for yourself
Fast foods are not suitable for your waistline and your wallet. You have to save money and calories by cooking for yourself cost-effective meals.
Learn to cook healthy dinners and packed lunches that are easier on your wallet and budget than just eating out every midday.
If you overdo the processed foods and restaurant meals, the calories you get in excess will lead to doctor bills that are costly.
3 Always try for a lower price
Most shoppers usually are more willing to accept the price that has been set by the store. Do not be afraid to ask for a discount especially when you are buying big appliances like a car.
You will realize that the prices are much more negotiable than you had imagined. Food stands, car lots big box store and second-hand shops are the perfect places where you can negotiate the price.
2 Tune out the financial noise
What you will keep on hearing from financial cable channels is the market is up! The market is down! The dow will hit 30000 soon! The dow is headed to a crash!
They like to keep things exciting because it is perfect for rating and they will not have any problem finding analytics so that they make predictions.
One analyst wrote a book Dow 30000 by 2008! Which became the year of a major market crash.
1 Never stop learning about money
Many people learn how to read, how to write, how to do their jobs and how to drive. But personal finance is a topic that most people have found out little about.
You will surely lose if you don’t know the rules of the game. You will need to spend time and look around here at onlinegoldformula.blogspot.com read books, and watch how videos on YouTube.
Do whatever is within your reach to help you increase your financial literacy.
Knowledge about money is not inborn; we have to learn it.