2007-12-16 06:25:23 · 12 answers · asked by Jose Z 1 in Business & Finance ➔ Personal Finance
Spend far less than you earn. Put money away for retirement, emergencies, and investing. Make sure you are well insured so you don't end up in a world of hurt from something preventable. So that is:
disability insurance
homeowner's or rental insurance
car insurance if you drive
at least a catastrophic health care plan (if basically healthy, check out an HSA)
Nothing wrong with using credit cards and many advantages--but always pay in full at the end of the month to avoid the downside.
Be careful about potential identity theft or other scams out there.
Have a health care power of attorney.
Check out the BOTTOM LINE on everything--from health care issues to mortgages, etc.
Keep good records and file taxes accurately and in plenty of time so you don't have that nightmare on your back.
2007-12-16 13:21:02 · answer #1 · answered by heyteach 6 · 0⤊ 0⤋
Don't play the credit card game. The credit card industry is a billion dollar a yr business and they don't lose. You will. If you play the credit card game, sooner or later you will get behind and lose. Once you start losing at the game it's hard to get out of the game. High interest rates that they can raise for any reason. Outrageous late fees and over the limit fees.
Pay as you go. Live on less than you make and you will have money. If you have money you don't have to borrow. If you don't borrow you don't have to worship at the alter of the almighty fico score. All the fico score is good for is borrowing money.
The only thing you might need to borrow for is a house. You can do that without a fico score. It's called manual underwriting. It's not a sub prime loan. It's the way it was done before the fico score. You can get the same low interest rates.
Stay away from car payments. Get a cash car. It'll get better gas mileage if its not dragging a payment book behind it.
No payments = cash in the bank.
Save up an emergency fund. If you don't have payments you can easly do this.
Debt free is definitely the way to be!
2007-12-16 07:44:15 · answer #2 · answered by heybulldog 5 · 0⤊ 0⤋
Simple, don't borrow money. This is done by not buying things you don't need and saving part of your income to build up a reserve. However, all debt is not bad. Most people would have a hard time buying a house or a car without going into debt. The idea is to assume only as much debt as you can afford and have a definite plan of repayment. In my younger days, when I wanted to buy something, I would save money until I could pay cash.
Credit card debt is also beneficial if you use the card for convenience to finance your monthly purchases. It is free credit as long as you pay the bill each month on time. But credit card on which you carry a balance from month to month is about the worst kind of debt you can have.
2007-12-16 06:36:57 · answer #3 · answered by Anonymous · 0⤊ 1⤋
My honest suggestion to you is on no account on no account attempt this. because of the fact the credit card business enterprise (i.e. Visa, MC, AMEX or Diners) has a international presence. they're going to make you a international defaulter. you will no longer have the skill to pass away the your abode united states of america in case you ever come back and neither gets any style of different credit card or any style of loans additionally. whether the credit card business enterprise writes it off as a bad debt, it will be an somewhat very great loss for you financially besides as emotionally.
2016-11-03 11:42:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Save up an emergency fund (3-6 months worth of expenses). Do not touch this for any reason. It is for emergencies. It will prevent you from going into debt if an emergency happens. And an emergency is you have to go to the hospital, not buying a new car.
2007-12-16 07:31:44 · answer #5 · answered by bar_two_123 3 · 1⤊ 0⤋
If you can not buy it now, don't get it, save up. If you use credit cards, only charge what you can pay off at the end of the month not any more so that you do not carry a balance. Maintain a savings account.
2007-12-16 06:40:25 · answer #6 · answered by Jolene M 2 · 1⤊ 0⤋
Live within your means!
Don't carry credit card balances.
Earmark a certain amount for savings every payday.
Save up for large purchases instead of finacing. Or at least pay off the large purchase before you finance another one.
2007-12-16 06:34:25 · answer #7 · answered by bdancer222 7 · 1⤊ 0⤋
Spend less than you make and pay with cash.
Heres' an entire site about that:
http://www.financialfreedomtrail.com/index.html
2007-12-17 16:02:44 · answer #8 · answered by Pilot Paul 2 · 0⤊ 0⤋
Avoid credit & borrowing.
2007-12-16 09:13:52 · answer #9 · answered by Anchor 2 · 0⤊ 0⤋
NO credit cards-pay cash as you go.
2007-12-16 06:37:09 · answer #10 · answered by john c 1 · 1⤊ 0⤋