Money is not the matter of wasting. Some people believe that they are financial experts and they spread their knowledge here and there. But most of the time, advices received are not true for every life. Necessary differs from person to person. Carefully assess your need and run for a good.
Save 10 Percent for Retirement
Save 10 percent from current income for retirement is common advice given by all. But the fact is this principle is not fitted to all. 10 percent may be not enough for a person whose needs will be greater in future. Similar that, if any person started saving late say after 40s, then he must save more than 10 percent.
Everyone’s situation is different. For example, some expect a little or a lot of pension income in retirement. Some expect small or large benefits from Social Security. Some need to try to build up a portfolio in different manner with million dollars. But for many people, it will not be enough. Make a plan and go with right percentage of income.
Don’t Use Credit Cards
It is difficult to go with this advice but somehow for many people it is reasonable. Credit cards or plastic cards are not useful for those who have trouble with impulse control and tend to rack up debt due to the hardiness. We are talking about some class of people. But for many people, it is one of the most convenient way as cards offer other benefits also.
Some cards also offer year end summaries, some are offer hundreds of dollars in cash back each year. It is also convenient because one need not to carry a bag of money while shopping.
Everybody needs Life Insurance
Most of the people believe that life insurance is needed for everyone. Some of those have all kinds of insurances such as insurance for health, homes, cars, and even for pets. Life insurance is to protect a vital income stream. But it really not needed for all.
Many families strongly recommend for life insurance whose family is depend on him. But it is not needed for those who are single or who have only one child.
Tap your 401(k) to pay off credit card debt
Think twice before you pay from your account for frivolous or non-frivolous thing, such as credit card debt. Remember that, when a person is removing money from retirement account, it can lose years of growth.
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