You may be thinking that you already know so much about money, but life consists of ups and downs and making mistakes is a part of life. How to boost your knowledge about personal finance and stop making silly money moves? Use professional tips to get to know what exactly you should avoid and how to act smart regarding your money!
One of most common dumb moves is borrowing money for buying things which go down in value. Getting in debt to buy a house is a wise move because you can profitably sell it, but getting an installment loan or using a credit card to buy clothes isn’t smart at all! Understand the difference between a good and a bad debt.
Another common mistake is paying 100 times more on a credit card than you earn on your savings (for example, when you pay 20% on a credit card and earn only 0.2 on savings). Watch the video to know exactly which money moves you should never do!
Video by Money Talk News
Boost Your Savings and Invest
Thus, you can see that it’s worth focusing on building savings and spending less money, especially on unnecessary things. Instead of thinking how to spend cash and what to buy, think how to cut expenses and add more to your savings!
Don’t underestimate the necessity to contribute to your 401(k) or other retirement plan because it’s extremely important to secure your future and financial well-being. Always look for an opportunity to save up and to invest savings. When your savings will start making you money, you will see how great it is! Don’t hesitate and try!