7 Great Money Tips To Lead You To Financial Freedom
Topics: money, credit, credit card, debt, real estate, investing, wealth, saving, 401k, insurance
Regardless of where we are in life we can all learn something about money and how to better prepare for our future. Especially when we see that the national average is $10,000 in credit card debt and that savings and preparedness is dropping. This article can put you back on track to a more fulfilling and financially free life.
1) Automate your investing. Experience has proven that if we have to make a conscious effort every time we need to invest we will start with good intentions and then miserably fail a few months later. If you can automate your savings, whether by using your employers 401k, a sep (self employment plan), or direct deductions from your account you will finish ahead. The rule here is if you don’t see it, you won’t realize it and you won’t miss it. Some of these deductions will reduce your taxable income and save you further on taxes (see your CPA and tax advisor for more info on this). A good rule of thumb is to set aside 10% of your income.
2) Real estate. If you haven’t already, buy a house. Renting will only make your landlord (hint – house owner) rich. Regardless of what the immediate market does real estate is one of the best long term investments you can make. It also has many advantages including deductions for mortgage interest. Real estate will always go up. People will always need a roof over their head. Just watch HGTV, real estate has made many millionaires and is a key factor in almost every tape and book series on gaining wealth. Stick with the standard 30 year fixed mortgage.
3) Medical and life insurance. You need to have them, if you think you don’t just ask anyone that didn’t have it when something unexpected happened. If you love your family, they are a must. But, on that note, don’t get taken. Buy term life. 20 years will give good term coverage and if you follow all of these tips you won’t need anything beyond that. Whole life only makes your agent rich and really never builds any value for the huge costs involved. Term life can be purchased cheap over the internet at great savings. For medical insurance, in most states Blue Cross and Blue Shield offer great plans that are a fraction of Cobra or employer plans. If you have an adequate employer plan, by all means use it. Stick with big names like Blue Cross as they will be around for years.
4) Don’t ever buy new cars. It is a fact that new cars lose 25-30% of their value the moment you drive it off the lot. Let someone else pay for that depreciation and get a two or three year old car or truck. With the latest technological advances cars can easily go 150,000 miles and above. A two or three year old vehicle with 30,000 miles on it will save you not only in initial cost, but also on your insurance, and taxes. Also do your homework before buying your car. Get your credit score and see what loans you qualify for. This can easily be done right off the internet and will save you big at your local dealer (never take a dealers word for your credit and rate – they will hold 1-3 points on rate and that can mean thousands in extra interest over the term of the loan).
5) Get out of debt. I put the investment tips above this as you need to pay yourself first. If you are overwhelmed with debt, their are numerous non-for-profit agencies that will renegotiate your debt and terms on your behalf. Work out a plan to get the high interest debt paid off. Be wiser with your purchases – do you really need that 60 inch flat screen tv? a BMW you cannot afford? etc… Cut up all cards but 1 (for emergencies you should have 1 credit card) and no store cards. The whole purpose behiind store cards is to entice you to buy more and pay more. My grandfather said it best – “if you can’t afford it, don’t buy it.” The only good loan to have is a mortgage.
6) Never burn bridges. If you happen to leave your current employ, leave on good terms. Find a replacement if time permits. This will put you in a good light with your former management and can result in a good reference, another job, a callback for more money, etc… Never leave on bad terms. Its just not good Kharma. Also, it won’t hurt to take former business associates and customers to lunch regularly. This will keep you in tune to the industry, give you many additional contacts afford you future favors – just think of the lobbyists on Capital Hill, you don’t think they spend all that money on their politicians for nothing do you? Don’t be afraid to ask for a favor every once in a while. Kharma is the big rule here -when you help others you will inadvertently help yourself.
7) Give back. Once you’ve made it it is only fair that you help others less fortunate than yourself. Regardless of your beliefs when you donate time and money to help others you will inadvertently help yourself. You will feel great. Also, the cardinal rule of kharma is that when you give you will get many more times what you give back. Take the time to help by volunteering your time. Even if it is 1 hour a week, you will help improve someone else’s life. Volunteer, it will make you a better person.
David Maillie is Cornell Alumni and award winning writer and researcher. For more great products and ideas please visit www.bestbraindrain.com
Previous Articles Highlighter:
How To Properly Fix A Flat Tire (1)
Also make sure you have a lug wrench that fits your car. This may sound stupid, but when I worked at a car dealership if the car didn't have a lug wrench and the customer wanted one, they just took one out of any car and put it in (never looking to see if it would fit the lugs on the car in question).
Breast Enhancement In An Hour (2)
Amongst the other non surgical breast augmentation modes, the pump has created quite a stir with some women claiming increase in their breast size by as much as two cups.
The Best Treatment For Acne Vulgaris - TCA Skin Peels-Used By Plastic Surgeons Everywhere (3)
This is where plastic surceons and doctors use TCA peels (trichloroacetic acid) which is a deeper peel to reach the source, change the skin pH (which kills off the bacteria - they cannot survive in high acidity conditions), and increase skin regeneration by sloughing off several layers.
What You Need To Know About Debt That The Credit Card Companies Do Not Want You To Know (4)
You lose money on rent, whereas it goes toward your principle in a mortgage. Basically, a mortgage is a forced savings plan and it far outweighs any savings account interest.
The Best In Headlight Repair, Cleaning, And Restoration (5)
All these conditions are considered severe weathering and will break down and ruin your headlights - it is just a matter of time. Its like cancer, once it starts to show it will get worse and worse.
How To Fix And Repair Headlights For Maximum Safety (6)
Let the water run out and then patch with silicone (easily obtained at Walmart or your local automotive store). Then find the source of the water. Usually the seals start to go bad after 3-5 years.
Makeup Tips To Turn The Ugly Duckling Into A Swan (7)
In conjunction with a moisturizer, it prevents the skin from ageing. The key to sparkling eyes, as every eye makeup tip will swear by, is light colored eye shadows like brown, mauve, vanilla or beige.
The Makings Of A Safe Car (8)
David Maillie is a chemist and an alumni of Cornell University. He holds numerous patents including his recently awarded patent for headlight cleaner and restorer. He can be reached at M.D.
Performance Of Call Centers (9)
The metrics mentioned above are regularly monitored by call center management since they provide an indication of the level of service being given by the call center. In addition, the quality of the calls is also ensured through the Quality Assurance (QA) Team.
Benefits Of Hybrid Automobiles (10)
In addition, there is a lower level of carbon dioxide released into the atmosphere. Many scientists and environmentalists link carbon dioxide to global warming. Parts of a Hybrid Vehicle: o Gas engine: the engine is smaller and more energy efficient than engines in traditional vehicles.
Newer Articles Highlighter:
5 Guaranteed Acne Care And Treatment Tips (1)
TCA skin peels. TCA peels have been clinically proven to be as effective as isotretinoin (trade name Accutane) in treating moderate to severe acne without the side effects. They are also used in almost every dermatologists and plastic surgeons office (They are usually referred to as the Obagi peel, blue peel, or Estheticians Choice TCA peel).
No Surgery And Fewer Hassles, Skin Peels Are The Easiest Skin Treatment (2)
And the greatest news is that the TCA Peel is also an effective medication to keep pre-cancerous lesions away. You could also make natural skin peels right at home.
Best Car Wash And Wax Tips From The Pros (3)
Here are their best car care recommendations: Start by using a garage or shaded area. The hot sun will make proper car care and cleaning hard, if not impossible and could be detrimental to your car's finish.
Online Auctions, Used Car Fraud And What You Need To Know (4)
This will reveal possible odometer and title problems. It will also reveal important issues like if the vehicle has been in a wreck or flooded. Never rely on the sellers word as to the vehicles history.
Best Car Care Makeover From The Detailing Experts (5)
Then, using car wash soap, wash the car one section at a time and then rinse. This will ensure the soap does not dry on the car and removes more dirt.
Remodeling Projects That Add Value (6)
These projects are a little lower on the average return on investment, 70 - 85%, but they should not be overlooked as they can make your house sell quicker. A screened porch is a must in some neighborhoods and many buyers have now come to desire or even require a home office as current trends show an increase in home offices and the self employed.
Taking Baby Steps To Reach Your Goals And Achieve Greatness Like Earnhardt And Trump (7)
They didn't just wake up one day and say my only goal is to be rich and retire tomorrow. They made plans and kept slowly raising the bar every time they would attain one of their goals.
Best Beauty Tips For A Healthy And Natural Look (8)
Here are the best beauty tips to be better informed: - Avoid soap and switch to natural cleansers - Wash your face often - Use an eye cream regularly - Drink lots of water - Never forget a sunscreen - Use natural beauty packs Mind Matters Last but not the least; you just can't glow unless its heart felt.
Acne Treatments That Dermatologists Actually Recommend And Use (9)
Before the dermatologists would tell us their recommendations, they wanted to make sure that we and our readers fully understood what acne is and what causes it. Acne starts as a blockage of the hair follicle by skin cells that are not properly exfoliated and excess sebum (oil).
What Causes Hair Loss In Women (10)
Basically, many cases in women are similar to mens cases, with too much testosterone. Over production of testosterone or lack of synthesis of it can result in it being turned into dihydrotestosterone (DHT) at the follicle which will slowly kill the follicle.
Permalink to 7 Great Money Tips To Lead You To Financial Freedom