For so many people personal finance is a mystery that seems impossible to figure out. The average American will make about one million dollars in a lifetime, but will still retire with only a small fraction of that money available. This article will share useful tips to show you how to make your money last longer.
Be careful not to make any long distance calls while traveling. Most cellphones have free roaming these days. Even if you are sure your cellphone has free roaming, read the fine print. Make sure you are aware of what “free roaming” entails. Similarly, be careful about making calls at all in hotel rooms.
You can start to get your finances in order with a good health insurance policy. You never know when you will need a doctor. For this reason, it is vital to have good health insurance. Bills for medical care can easily run into the tens of thousands of dollars. You will have a big issue if you cannot carry health insurance.
If you have a good credit score, be careful about co-signing for someone, especially if they have a bad score or are not likely to pay off their debt. Co-signing does not improve your own score in any way and puts a lot of pressure on you. Do it if you are sure that the person you are co-signing for can do the same for you.
Most debt collectors will negotiate the amount owed on an account. Chances are that they bought your debt for a low price. So, even if you can only pay them a small piece of what you originally owed, they will probably still make a profit. By taking advantage of how this system works, you can pay off old debts for less than what you owe.
Don’t take out huge amounts on student loan debt without being in a position to repay it. Being unsure of your college major and going to a pricey private school can make you get into permanent debt.
As a college student, you will want to reduce the amount that you spend on books and supplies. Instead of purchasing books at the campus bookstore, which is usually at retail price, make friends with upperclassman who can give you these books at a discount. This can save you hundreds of dollars per semester.
To make sure your checking account isn’t a drain on your finances, take the time to find a truly free checking account. Some checking accounts claim to be free, but have high minimum funds requirements or will charge a fee if you don’t have direct deposit. This can put you in a bad place if you become unemployed. A totally free checking account will allow you to make the best use of your finances no matter what your situation is.
Rebalance any investments that you may have. Stocks and bonds have had an overall good year, though cash yields are near zero. Look at your portfolio and make sure that you don’t need to move anything around so that you are earning more money. You should be doing this every year to help your portfolio.
Avoid overdrafts in your checking account by always rounding to the next dollar when you note the amount of checks in your check register. In this way, your running balance (the amount written in your check register) will always be a little bit less than your actual balance. This will help you build a little safety net in your checking account.
It is a very scary and real thought to think that when you really need your money, you may have none left. Don’t take this article lightly. Being broke is a nightmare that you can prevent. Take what is given to you in this article, and make sure you don’t find yourself in that situation.