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Last Updated on January 20, 2024 by Work In My Pajamas
People across the nation are lacking in the financial skills that will help keep them afloat throughout their lives. In fact, many of them are quickly finding their selves burdened with debt and having to file bankruptcy. So, how is this problem to be addressed? Well, for starters, the four following tips should be taken to heart.
In This Post:
4 Money Managing Tips Everyone Should Know
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Quit Using Credit Cards
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As unfortunate as it is, credit card companies are steal handing away credit cards like candy, and what’s even worse, is consumers latch onto these cards like they are a lifesaver. While credit cards do have their advantages, they are mostly accompanied with negative aspects, including the ability to put card users into so much debt that it takes them 20 years or more to pull their selves out. Credit cards should only be used during emergencies. To do this properly, it is essential that card users set down and define what an emergency is and what it is not.
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Open a Savings Account
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A savings account should not be confused with an emergency fund account; however, a person will need both types. A savings account should be used to pay for expensive purchases such as a car or down payment on a home. An emergency account should be used to cover emergency expenses such as car repairs. In addition, within the emergency account should be six months worth of living expenses, you know, for emergencies. To pay for emergencies, it is possible to wire money from an emergency account.
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Buy Used
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Buying used can go a long ways in saving money. From used clothing to used home appliances to used vehicles, thousands of dollars can be saved. Better yet, many times, used items that have been taken care of are just as good as new ones.
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Earn Extra Cash
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There are many ways for a person to go about earning extra cash to pay off his or her debt quicker. From working overtime to turning a hobby into a way to make a few extra bucks, the main thing is to do something that is enjoyable. Earning extra cash and paying off debt is one of the best money management tips to follow because it proves a person is doing their best to pay off creditors. Paying off creditors will lead to an improved credit score.
By following the above mentioned tips, a person will be well on his or her way to financial freedom. By having a strong financial future, a person will be enjoy life more as well as be able to do more in life.
I also read that Warren Buffet became filthy rich not because he made crazy investments but he saved like crazy and only ever invested about 10% of what he saved. And the return he’d make on that 10% he invested would only be around 4 – 8% return. Doesn’t sound like much but then he would rinse and repeat…. makes “Saving” a whole lot more attractive if it looked that simple 🙂
Thanks for sharing! Great post
Great advice. I just wished I had the will power to get rid of my credit card or if someone would steal it and tear it up. Also love the savings account idea because long term thinking pays exponentially in the future.