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5 Financial Tips For The Future

5 Financial Tips For The Future

We live in a time where money is something that is hard to earn but easily taken away due to the high cost of living. Being able to live financially secure dictates that you have a financial plan, at the very least, some sort of system that ensures you survive if — god forbid — you were to lose your means of making an income. These 5 financial tips for the future will help you stay afloat and be able to deal with any unforeseeable situations that could occur.

Have A Kids Future Fund

I decided not so long ago to start a separate account dedicated for the kids of my future. A lot of people wait till they actually plan on having a kid but by then you have all these new expenses to take care off and end up cutting back on saving enough for your retirement and vacation fund, let alone a kids future fund.  Start early; it could be even 50 bucks a month for now. It’s a great way to ensure your kids have some tertiary education funds available.

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Don’t Take More Than 1 Credit Card With You When Shopping

Shopping is one activity that can easily throw you into debt, especially when you make frequent visits to the mall. The best thing to do is leave your credit cards at home and carry a designated allowance amount with you to ensure you don’t over spend. Credit money is not money you own, it’s money you will owe! Remember the difference.

Plan For Your Mortgage

You may have dreams of owning an apartment or a house someday so it’s wise you work your income to accommodate the possibility of taking out a mortgage. Go through house catalog and choose something you like, inflate the price by 10 percent, and work out what you would need for an entire year worth of mortgage payments. You could use a free app to do this or manually work out a mortgage plan. Afterwards, figure out how much you can afford to put away into savings for a mortgage. Reason being, by the time you take one out, surely you’ll be paying it with your salary. But if you were to hit a bump in the road, you have this savings to buy you enough time to get back on your feet.

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Forex Trading

Believe it or not, foreign exchange trading can be profitable if you actually have the chance to invest. There’s many potential countries that have a low currency now but are on the road to growing economically. If you invest small amounts of cash every month or 3 months, in a few years you can trade and sell your invested currencies to make a substantial profit. There are many seminars and blogs that deal with forex specifically – if anything it makes for an interesting read.

Learn About Frugal Living

To be financially stable is being able to live smarter and wiser. The way you manage your money now can really impact your future which is why going frugal is the way to be. It’s not exactly convenient but a great way of surviving in harsh times. Opt for cheaper over branded stuff at times.

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I read a very interesting quote: “Rich people invest their money whilst poor people spend it.” That’s really something to think about. If you take the first steps as listed above, your future will be a lot more financial stable and secure. Try to implement at least one of these tips into your life as of now and you’ll be doing a great deed for yourself in the future.

Additional : Download Free Mortgage Calculator App

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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