Be a ‘paper towel’ person
Any discussion of credit and finances isn’t complete without discussing the emotional components of it. Fear, shame and guilt over financial mistakes can actually prevent you from seeing solutions that may be right in front of you. “Trust me, I’ve made just about every financial mistake you can make, and I’m on the other side now,” says Aliche. “But first, I had to let go of fear and shame in order to get to those solutions. We’re so hard on ourselves when we’re learning financial things, so I tell people to be a paper-towel person. If you spill something, for example, you can either beat yourself up over it, or you can get a paper towel and clean it up, like you are going to do anyway. This made a big difference for me.”
Use credit cards versus cash for big purchases
Have a big purchase in mind? Put it on your card – and pay it off in full – rather than use cash, suggests Foguth. “That way, you’re getting all the rewards on that big purchase, and you are also showing that you’re a good borrower, so you’re getting cash back and helping your credit score simply for paying by credit card.”
Here are 13 things you’re wasting your money on if buying brand new.
Stop saving for retirement
Have your attention? Good. Because our experts agree that if you are going to choose between retirement savings or paying off debt, tackle the plastic first. “I know it sounds counter-intuitive, but listen to this: I have clients who have $1 million in retirement savings and $40,000 in revolving credit card debt that they’re paying interest on. This means that if they stopped saving money for retirement for 6 to 12 months, say, they’d be debt-free and save themselves the interest that they were paying on their credit card. Think about it, if you save yourself 10% interest with your credit card company, that’s the same as making 10% on your investment,” he says.
Here’s how to build a happy retirement.
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Source: RD.com
