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8:38 am - Saturday December 7, 2019

Simple Things You Should Know About Money

| Money Saving Tips | Rating: 4.5
by Numan

Some say that it is money that makes the world go round. I have always believed though that it should be you who is in control of money, instead of money controlling you.

Here are some simple things that we all should know about money:

1. Americans are heavily dumped with credit-card debts. Most American households owe about $10,700 in credit-card debt with an average interest rate in the mid- to high teens.

2. Some of it is good debt. Borrowing money for a home or college is usually good. Just make sure you don’t borrow too much.

3. Some of it is bad debt. Don’t use credit cards to pay for things such as meals and vacations, if you can’t pay them off in full in a month. Keep some cash every month for these items. For anything that’s expensive but you really want, save for it.

4. Spend your money wisely. Think about what you are buying.

5. Get rid of highest-interest-rate debts first.

6. Don’t just pay the minimum. If you pay only the minimum due, it will take you too long to pay off your balance.

7. Don’t borrow against your home or your 401(k) to pay off debt. You might lose your home or your retirement money.

8. Be prepared for emergencies. Have at least three months to six months worth of living expenses saved in case of an emergency.

9. Handle your mortgage wisely. Don’t use all your cash to pay off a mortgage if you have other debts. Mortgages usually have lower interest rates, and you may deduct the interest you pay on the first $1 million of a mortgage loan.

10. Get help when you need it. Ask for help before your debt breaks you. Go to a debt counseling agency and find ways to consolidate your debt. But take care, there are also a lot of disreputable agencies out there.

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