January 6, 2009

Best Advice

There are no shortages of advices. Family, friends, relatives are always giving you their opinions whether you want to hear them or not. There are a few though (whether or not it's from someone you like) that are helpful and we can benefit from listening to it.

Empty out the change from your pockets when you get home and save them in a jar (or a can, bank, whatever you can find).
At the end of the year you can use it for Christmas gifts, buy something for yourself or better yet put it into savings. Remember a penny saved is a penny earned! You are probably thinking - a penny?? What good is a penny? If you have 100 pennies, you can order from the McDonalds $1 menu. 200 pennies? You can order TWO items! Now, doesn't that put everything in perspective?

Don’t buy anything you can’t pay for in cash
If you have to use a credit card to pay for it, then don’t buy it. Try to save for it instead.
Which brings us to the next point.....

Pay your credit card in FULL each month
Those interest rates are high and why waste money paying towards finance charges and interest?

Save atleast 10% of your paycheck
Having it automatically transferred into a savings account helps. If you don’t see it, you won’t spend it. Always pay yourself first! I have an ING Savings Account which I use for this purpose. If you need a referral, E-mail me!

Make/follow a budget
Making a budget is easy enough but following it is the hard part. If you can stick to the budget then your money goals will be that much easier! This is one of my 2009 goals.

Live below your means
I think this is one of the big ones. It’s easy to increase your expenses when you get a raise, but try to live off the old income. Differentiate between needs and wants. No girls, new shoes are NOT a need!

Savings/Investing wisely leads to financial freedom!

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