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5 Personal Finance Tips Most People Wish They'd Known When They Were Younger | My Money Coach

2 Basic Rules Of Financial Decisions

  1. Carefully evaluate any financial decisions you plan to make.
  2. Ask for advice before finalizing your choices. Seek out people and sources you trust to help you.

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5 Personal Finance Tips Most People Wish They'd Known When They Were Younger | My Money Coach

5 Personal Finance Tips Most People Wish They'd Known When They Were Younger | My Money Coach

https://www.mymoneycoach.ca/blog/personal-finance-tips-people-wish-they-knew-when-younger

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Key Ideas

5 personal-finance tips for young people

  1. Start saving early to have a good start on building retirement savings before beginning a family and career.
  2. Understand that credit cards are not a safe net, using it may lead to debt.
  3. Buying life insurance when you’re young ensures you’ll get lower premiums and potentially avoid costs if it has a grandfathering clause.
  4. The cost of buying a car might mean you’ll have to delay buying a house.  Look at your budget carefully and test drive additional payments for 6 months if you think you can do both.
  5. Plan how to avoid impulse spending to avoid debt and distress. Set a waiting period proportional to the price of what you want to buy. Anything worth having is worth waiting for.

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SIMILAR ARTICLES & IDEAS:

3 Financial Basics
  1. Create a Financial Calendar: prevent yourself from forgetting quarterly tax payments and to get credit reports.
  2. Check Your Interest Rate: Pay off loans, open saving accou...
Budgeting Like a Pro
  • Consider an All-Cash Diet, as limiting yourself to physical currency combats overspending.
  • Set aside 1 minute a day to check on your financial transactions, to identify problems, track goal progress and set your spending tone.
  • Allocate at least 20% of your income to financial priorities like emergency funds, debts and retirement fund.
  • Budget about 30% of your income for nonbasic spendings, like entertainment. Abiding by the 30% rule, you can save and splurge at the same time.
How to Get Money Motivated
  • Draft a Financial Vision Board, it motivates and helps you to stay on track with your financial goals.
  • Set specific financial goals stating the reason, the way, numbers and dates.
  • Adopt a spending mantra, a phrase that serves as a rule of thumb for how you spend.
  • Love yourself. Taking control of your finances is part of that.
  • Make bite-size money goals. Make the bigger ones but also small step goals to get there.
  • Don’t be a financial fatalist, and switch to more positive mantras.
  • Get your finances and body in shape. The discipline associated with regular exercising translates to managing your money well.
  • Appreciate what you have now, instead of being a consumerist.
  • Get a Money Buddy. Studies indicate people pick up good habits from friends with similar traits.

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Refinancing your home
Refinancing your home

When mortgage interest rates get low, refinancing isn't always the best choice.

Deciding when to refinance your home loan depends on several factors besides whether you...

Reasons to refinance your mortgage

The two big reasons to refinance are:

  • To reduce your monthly mortgage payment
  • To save on the overall interest you will pay on your house in the long run.

Refinancing does not always reduce the monthly payment or save on the overall interest.. A loan officer or mortgage broker can help you run scenarios that show you the cost and potential savings of refinancing.

How long you keep your home

Generally, it makes sense to refinance if you plan on staying in your home for many years.

If you plan to sell the property soon, don't refinance. Refinancing could take years to break even and begin saving you money.

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Regular monthly bills
Regular monthly bills

The bulk of your budget is made up of necessities like rent, phone and internet bills, insurance, etc. If you can lower your monthly expenses, you can save a lot for unplanned events.

Debt when you're on a tight budget

There are a couple of paths you can take to pay off your high-interest debt when you're on a tight budget.

  • The snowball method. For those who need to see progress, pay off the lowest balance first. You'll feel inspired to keep going.
  • The avalanche method. Choose the debt with the highest interest rate to pay off first. This may require larger monthly payments and will take longer to see progress, but you will save the most money in the long run.
  • If you need to prioritize your credit score, focus on paying down your credit cards first. Paying the ones you are near to maxing out will improve your score quickly by a few points.
  • Set up payment plans, even if you can only afford a few dollars at a time. That way, your lenders can see you're paying something.
Incorporate unplanned entertainment in your budget

Financial professionals will advise you to cut out expensive nights out. In truth, you will have night's out, even when you're dirt poor.

To incorporate unplanned entertainment, set aside an amount each month. Be realistic. You can open another savings account for fun spending or you can use cash only.

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