Credit Cards Are a Significant and Frequently Needless Cost
Credit cards should be used only for emergencies. They can lead to long-term financial burdens despite all their conveniences. Paying only the minimum amount on a $1,000 balance can stretch out repayment over 20 to 30 years, thanks to high-interest rates. If you have decent credit, pick up the phone and call your credit card company. Ask them to lower your interest rates. Many folks don’t realize that this option even exists.
The Payment of a Mortgage
By making just one extra payment each year, you can cut down a 30-year mortgage to 18 years. This can be done in full or through monthly installments, and if you make several extra payments, you can further reduce the mortgage term.
Coverage
Compare quotes for insurance and speak with a trustworthy representative to uncover any and all possible discounts, like those for insuring several vehicles or for having a student who excels academically. The price you pay for an insurance policy can swing widely from one company to another, so make absolutely sure you check around. The lowest price is not always the best deal to be had.
Services
Set up household rules regarding energy usage, like turning off the lights in rooms that aren’t being used and keeping the thermostat at a reasonable temperature. Even better, replace your old, inefficient appliances with new, ENERGY STAR-rated ones. You’ll save more than enough to cover the cost of the appliances in lower utility bills.
Creditors Without Security
Maintain a close account of all of your unsecured debts, including the amounts necessary to pay off the debts and the contact information for the creditors. Then, to manage your debts effectively, pay off one creditor at a time.
Buy versus Rent or Lease
Assess the monetary consequences of renting or leasing a house or an automobile. Given your personal financial circumstances, one of these choices could prove to be the most sensible.
Appropriate Care
Purchase a yearly home warranty. This cover can be had for an average cost of between $350 and $500 per year. Home warranties cover a multitude of repairs around the home and charge only a nominal service fee to do so.
401(k) and Company Stock
An outstanding method of saving is by paying into a 401(k) plan—or even better, into employee stock options. Many companies match contributions to retirement plans up to 6 percent of a worker’s salary, which is essentially “free money.”
On-time Payment
Ensure you make timely payments to avoid incurring late fees, which can go as high as $50. These payments do nothing to decrease your debt burden. All they do is add extra charges and expenditure to what you owe every month.
Getting Rid of Your House
When you sell your house, you want to do it with a real estate agent you can trust. The pay difference from a commission side can lead to some significant differences when it comes time to count the money outcomes.
Verify Statements and Receipts
Frequently, grocery and store receipts have overcharges on them. Make it a habit to check yours. The same goes for your phone bill, bank statement, and credit card statement.
Take the Hospital/Doctor to Task
Keep a watchful eye on hospital bills, as they frequently mark up charges for ordinary goods and services. Always inquire about charges that appear to be out of line.
Overdraft Protection
If you have a savings account, consider adding overdraft protection to your checking account. This can help you avoid paying pricey fees when your checks are returned.
Accounts in Banks
Make sure you hold the appropriate kind of bank account for your requirements. If the bank you currently use does not fulfill your needs, think about changing to a credit union or another bank.
Correct Subtractions
Maximize your savings by fine-tuning the tax withholding on your paycheck for stock options or 401(k) contributions. If your employer has a matching program, take full advantage of it.
Christmas Fund
Numerous banks provide programs under the heading “Christmas Fund,” which can assist in saving for the expenses of the holiday season while avoiding the temptation to overspend.
