Financial advice is everywhere. You hear it from financial experts, financial failures and even your mom. While your finances are important, there are some rules you’ve learned over the course of your life that you’ve heard from experts, those who wish they’d made better decisions and even your mom. Those rules might still be excellent rules, but some of them are far too outdated to work. The New Year will be here in less than 48 hours; let’s make 2014 a great financial year for all with up to date advice.
Credit Card Pay-Offs
You might hear that it’s far better to pay off your higher-interest credit card balances first when eliminating debt and this is still true. However, if you’re one of those people who need to see instant results to feel good about things and continue along the same path, you’ll need to pay off your lower balances first. Seeing instant results helps you to feel a sense of accomplishment and success that will help you stay on that path longer. Just know that paying off low balances first means you’re paying more in the long run.
Have Great Insurance
Stay healthy and get a great insurance policy. It’s far more important for you to have both of these than just about anything else. One of the leading causes of bankruptcy in this country is not, in fact, job loss. It’s medical bills you cannot afford to pay. You can help to eliminate these by maintaining great health and by having enough insurance to cover you should anything happen.
Don’t Lend Money
The old rule is that you should only lend money to those you trust – or just family. The new rule is that you should never lend money to anyone – ever. It’s a bad idea. You’re not a bank. You have no idea if someone is ever going to pay you back. You just don’t know. Don’t lend money – it’s not a good idea.
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