When it comes to thinks like saving money, spending less money, budgeting and retiring, they all have one thing in common. To do all of them, you need discipline and need to follow the helpful tips that will help get you there. There are several money tips out there to consider, but these are the top 5 you need to live your life by!
Top 5 Money Tips to Live by:
Yourself first – First of all, it is important to always take care of yourself before you take care of anyone else. This means if your children want the latest toys, your parents or friends need money, etc. YOU need to come first. You work for you, not to be everyone’s ATM.
Co-signing - You should never co-sign for anyone. If your friends or family members have bad credit and can’t get by with just themselves you know there is already a problem. Don’t be responsible for anyone else, especially when it comes to money.
Build money - It is important that you make money off of your money. So many people have a basic savings account that gains hardly any interest. If you’re looking to make real money on your money open up a CD or money market!
Insurance - Always make sure you have insurance! You may be able to get by with high deductibles, but never risk having none. We can’t predict things like a house fire, car accident, or when something may go wrong with our health. It’s way to costly and risky.
10% - If you want to retire at a reasonable age, they say you need to save at least 10% of each paycheck. If you can do this, you’ll be much better off than someone who doesn’t. Ten percent really isn’t that much, yet down the road if you put that money into a money market you’ll be able to retire!
Money is something that causes happiness, stress, and every emotion in between. Make sure you are smart with your money, plan for the future, and think about what’s important. For now, consider a few of these top money tips.
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December 26th, 2009 at 12:52 pm
Excellent points! Here’s a 6th tip: keep in mind the notion of life energy = money from the writing of Dominguez and Robin in “Your Money or Your Life.” The authors postulate that we trade life energy for money. We spend on commuting, costuming, meals, decompression (vacations and expensive playthings), escape entertainment, vacation, job-related to illness, and I might add gifts. Each expense represents an expenditure of life energy as well.
It is so easy to get carried away giving expensive gifts, especially when one has a large credit limit. Yet the day of reckoning when we actually have to pay the bills comes sooner than expected. Money “is something that we all too often do not have, which we struggle to get it, on which we pin our hopes of power, happiness, security, acceptance, success, fulfillment, achievement and personal worth,” according to Dominguez and Robin.
Within the larger picture of financial sagacity, they recommend to keep track of every cent that comes into or goes out of your life on a daily basis. For more on money and happiness, see http://www.happiness-after-midlife.com/midlife-challenges.html.