It seems that the media is awash with financial advice, so much so that it’s virtually impossible to follow it, but that’s okay. Really, there are only a handful of financial tips that really matter, and when followed will save you money.
Here are some of the most vital pieces of money advice you really can’t afford to overlook:
Always Pay Yourself First
A lot of people don’t practice this very simple piece of advice, and they end up getting into financial difficulties because of it. Basically, paying yourself first means that you should be saving a, not insignificant portion of your income each month. Ideally, if you can save one hour of your daily income every day, you will be in a much better position 1, 3or 10 years from now and you won’t have to worry so much about all those little emergencies that crop up for us all from time to time.
Insurance is an Investment
Insurance, whether it’s homeowner’s insurance from Geico, travel insurance from GoBear comprehensive medical insurance from Medibroker, is an investment that you can’t afford to ignore. A lot of people do ignore insurance though, not thinking about the future, only looking to save a few bucks in the present, and many of them go on to regret it when they have an accident overseas and they’re hit with a multi-thousand dollar bill, or their house burns down and they have no cash in the bank to rebuild. You don’t want to be like them. Insurance might be an extra monthly expense, but it is one that ensures you are protected from worse financial troubles in the future.
Don’t Keep Up with the Joneses
Keeping up with the Joneses is something that can start to creep into your life in your late 20s to early 30s, causing you to spend more than you can really afford on fast cars, big houses and fancy clothes, leading you into a life of debt and despair if you aren’t careful. Avoid this and live within your means if you want to build a brighter, happier future. It is, after all, financial security, not a mansion in the Hamptons that will make you happy in the end.
Instead of leaving your money in the bank where it might gain a few measly percent in interest, get yourself a good financial planner and start investing in the stock market. Play the long game, don’t expect huge returns overnight, and you should see your savings grow.
Build an Emergency Fund
Building an emergency fund, so that you don’t have to get into debt for car repairs, new appliances, home improvements or medical emergencies is imminently sensible and will save you a whole lot of stress if and when the worst does happen.
Pay in Full
If you use a credit card, make every effort to pay it off in full at the end of the month. Accruing a little interest here and there might not seem like a big deal, but that interest will grow, and more interest will be charged on it until before you know it, your bill is so huge you struggle to pay it off each month. Don’t let this happen!
Staying in the black and avoiding financial problems isn’t easy, but if you do these things, it will be a whole lot easier, and your financial future will look a whole lot brighter too!