Caution: Reading this post will cause possible “Financial Liberation”
1.Get rid of your private medical insurance, whoever wanted those pesky premiums anyway,instead,sign up for an HDHP.
2. Opt for stable health savings account, which has great unseen benefits.
3.Use your credit card wisely , it can be an extremely useful tool but can also destroy your personal finance freedom if not used with caution.
4.Consider investing in Credit unions instead of banks, they make an excellent alternative to traditional banking institutions.
5.Invest your hard earned paychecks in certificate deposits. Easily the most stable and secure method to store saved excess funds for a rainy day.
6.Always put your money in an a bank that is affiliated with the FDIC for that extra protection.
7.Use the equity on your home for a refinance as a last resort. Refinance can be tricky and needs to be well planned and thought out.Do the numbers and calculation and see if its actually worth initiating before getting impressed with the sales pitch of the agent.
8.Easier said than done, but keep your loans to a bare minimum, it’s a heavy burden for a long time.
9.Take quotations from different banks before zeroing in on your mortgage plan. Your mortgage is the single biggest responsibility you will have to manage, even more than your marrriage-all said and done.
10. The tenure of your loan can last a long time, even longer than your marriage, so be cautious while choosing the term plan,remember the longer the term, the more the interest rate,the longer the agony.
11.Make minimum payments on your credit card on time, the penalties charged can sometimes be more than the minimum due itself.
12.Live a frugal existence ,upto a point where it doesn’t take the fun out of life. Own a few essential expensive things rather than a truck load of spree splurged material possessions.
13.Debt should never be part of your vocabulary, let alone being part of your life.
14.Keep your credit score in check.Its a good practice to get get it evaluated using free online tools.This is good in the long run, as future loans rate that you will be subject to depend on your this score.Having a healthy score by paying back your credit in time consistently will get you lowered interest rates later in life when you really need it.
15.As far as possible be wary of any insurance that you take up. It could be a blessing in disguise or a drain on your resources for something that you could never use. Insurance in my opinion has more pitfalls than benefits. A well maintained and organized personal account with periodic deposits can mimic the effect t of having a policy, without the added fear of ever losing your sum assured in case you miss a premium payment.
16.Never use your credit card more than a certain limit, which you subconsciously fix in your mind. It could be quarter or half of your total balance offered. This “mental” limitation can keep your spending in check and increase your payback potential.