8 rules for saving, borrowing and spending money | Local company

6. Finance your home smartly

If you want to become a homeowner, the best time to buy your first home is when you’re financially ready and able to stay put for a few years. Go with a fixed mortgage rate for as long as you plan to stay in the house and don’t make any additional principal payments until you’ve paid off all other debts and are on your way to retirement.

7. Buy used vehicles and drive them for years

Buying a car now is not a good idea; Supply chain issues and other issues related to the pandemic have inflated the cost of new and used cars. In general, however, buying a used car can save you a ton of money over your driving life, just like driving your car for many years before replacing it. Today, a well-maintained car can travel 200,000 miles without major problems, according to JD Power. This means that you can get around 13 years of service with your car if you drive it 15,000 miles per year. Ideally, you would pay cash for the cars. If you have to borrow, try to limit your loan term to a maximum of five years.

8. Insure against catastrophic expenses

Use insurance to protect yourself against catastrophic expenses rather than smaller costs that you can easily pay out of pocket. If you have enough savings, consider increasing your policy deductibles to save money on premiums. However, be careful with health insurance policies with a high deductible. Having a high deductible could cause you to postpone medical attention, and it’s best to err on the side of health safety.

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