Monthly Archives: January 2019
Fox Business News reported, everyone starts out a new year with the best intentions. Instead find ways to save money in 2019:
- Cut back on your monthly subscriptions
- Make the ”unsubscribe” button your new BFF
- Create monthly financial resolutions
- Transition your traditional IRA to a Roth IRA
- Create sinking funds for weddings, birthdays, new tires
If you are serious about making a fresh start with your money, these tips will get you set up financially for 2019. This time next year, you could be in an entirely different situation. So, make this year a successful one!
There are many ways to begin creating your emergency savings account. One of the best ways is to take your income tax refund and set it aside to bolster your emergency savings account. You may have several reasons to spend your tax refund immediately. If you have ever had a loss of income you will recognize the importance of setting aside cash. Savings means you do not have to rely on loans or borrowing from family members or friends. Start your emergency savings account as soon as possible and watch it grow!
The 2019 federal government shutdown may become the longest in American history. It is a key example of the value of an emergency savings account for everyone. Whether you are a federal employee, a government contractor, or a teacher that finds themselves on strike. An emergency savings is your only buffer in the event of a loss of income or your bi-weekly paycheck. The standard six months of monthly expenses is the general guideline. Although it is difficult to achieve, it is not impossible. Out of desperation, many may turn to payday loans or high interest credit cards to make financial ends meet.
Savings provide a sense of security. But if you pay more interest on your debt that you earn on your savings, you’re going backward. One possible exception could be debt that comes with a tax benefit, such as mortgage interest or some student loans. Use low interest savings to pay off high-interest debt. Otherwise, you will gradually reduce your net worth. If you are in danger of being laid off or you anticipate a big expense, retaining cash helps you sleep at night.
Never borrow to buy items that loose their value such as a motor vehicles or clothing. Ideally, credit should be used to buy only those few things that generally increase in value such as a house, an education, and perhaps a business – also considered ‘good debt’. If you need to acquire an item that will lose value, save in advance for this purchase. Shop online and compare prices to save money.
Buying a new car is almost never a good idea. The car depreciates approximately ten percent once you drive it off the lot. By the end of one year of ownership, the car will depreciate another ten percent. It is recommended that you buy a new-used car with low milage and a good consumer safety record to get the most for your dollar and a plus if you want to resell it at a later date. There are options at Enterprise or Hertz who sell cars in their fleet after one year. The best part is the cars may still have a warranty and have been serviced regularly. Carvana is a (new used car vendor) and Carmax will also purchase your trade-in. Remember to do your homework and save up for this purchase to limit new debt.
In some cases, buying brand names are worth the cost. In other situations, brand names are no better than alternatives that can be purchased at a much lower price. Don’t pay for a popular brand’s advertising budget. When things are worth the extra money, pay for it. But for items such as prescription drugs, cleaning supplies, and food products – the generic is identical to the branded product.
Ignoring your credit is a bad idea because it affects loan interest rates, insurance, rates, credit offers and even job offers. Understand the true cost of bad credit and take steps to improve yours. Get your free copy today. www.annualcreditreport.com If your credit score is poor, study ways to boost it to benefit you the next time you make a large purchase.
Before you purchase the next item, ask the vendor for a better deal. Cars, cable, cellphone, utilities and more often have pricing that is flexible or negotiable. This also includes vacations or haircuts.