5 Tried and True Financial Tips
Hi Money Masters!
Have you ever been given some advice or seen someone do something that made you say to yourself, “Why didn’t I think of that?!” It happens to everyone at some point. What may seem obvious to one person is not that obvious to another. That’s why we need to share information with others, especially when that info can benefit our financial situation…Cha-Ching! Am I right?!
Here are 5 tips, tricks and tactics that anyone can benefit from and are also pretty straight-forward.
Saving Money. There are tons of ways to save money; some are creative, some are basic, and some are complex. Start with looking at your service plans and calling the company for deals or discounts. Also, look for ways you can lower costs in your housing and transportation areas.
From hiring a financial advisor to just putting your credit card in the freezer, there are no shortages of tricks here.
Family Finances. When two people share finances, there can be differences in opinions and habits. It’s important to have regular, honest discussions with your spouse AND children. Children who learn good money habits at an early age are more likely to keep those habits as they get older. If possible, give kids an allowance so they can practice spending and saving. Allow them to make their own decisions and they will feel proud of their accomplishments and learn from their mistakes.
Taxes. The best way to save on taxes is to contribute to your 401(k) or other retirement plan. Stay away from scams that promise tax avoidance as they can be illegal or not effective at all.
It might also be worth it to do your own taxes (if at least just once) if you usually hire someone. There are easy to use web-based programs and software on the market. Do your research and find the best one that fits your financial situation.
Credit. Your credit will affect you in most major areas of your life including residency, transportation, or sometimes even employment. The most important components of your credit score are payment history and credit utilization. I cannot stress this enough: PAY YOUR BILLS ON TIME. Using a card properly can build credit, however, too high of a balance and too low of an income can result in poor credit. When use is manageable, paying off the full amount each month is ideal.
Insurance. There are a few types of insurance that everyone should have as a necessity for peace of mind.
Term life insurance should be purchased, especially if another person relies on your income.
Renters or homeowner’s insurance and car insurance
Disability insurance and health insurance