If you buy shares, property or keep your money in the bank this year? For most people, without having the inside information, it’s hard to know. I do not know about the next stock to hit the headlines, and no one knows where interest rates are going to be one, two, and especially after five years. You must be extremely careful who you claim to be doing.
1. Better Job
When choosing a job, you should follow your “comparative advantage.” Economics teaches us that we are all better off when we are specializing in doing what we do best comparison is between the trade. Investing develop these skills and work.
Know your value and ask for pay rises. And aim high. Ask for twice what you want, and then, when you can get a half, you’ll be pleased.
3. Rent or Buy
If you rent or buy? Whatever you do, do not overstretch yourself. Paying too much for a home that does not cost extra money and pay interest in pleasure is just as bad as the money to pay the rent and save the rest.
If you have a mortgage, ring your bank and dispute the mortgage off. Rates are not set in stone. If you have a decent credit history, you should be aiming to get a headline out of 1 percentage point in the discount rate.
5. Don’t Pay Fees to Bank
Stop paying banking fees TODAY. I do not pay monthly account keeping fees for more than a decade, there are fee free accounts out there. Get one.
Sign In comparison websites to find the best savings accounts paying the lowest rate mortgages and the cheapest insurance. Prices have never been so easily discoverable. Do your homework.
7. Credit Card PayOff
Pay off your credit cards first. If you can not afford to pay for it now, take advantage of the many 0% balance transfer deals that offer to give you some relieved. Check for any fees, and be wary of the new card does not reset the interest rate is very high.
8. Saving Money
Remember the magic of compound interest. Money in a savings account earning interest for you. And overtime you earn interest on the interest. It’s the closest you’ll get money for nothing. A dollar saved today will be worth more than $1.60 for ten years (assuming an average interest rate of 5%) if you leave it at that.
9. Pension Money
Remember pension money is real money to look after it. At least know your name and where your money is invested in the fund. If you’re young, you can choose to have a higher risk asset allocation that is more stock as you approach retirement, slowly wind it back in cash, so you’re on track for the retirement you expect.
10. Increasing Productivity
Art is the only reliable way to increase productivity, higher standards of living. You can make money in financial assets, if you’re lucky, time to market, correct, or inside information, but many of us are forced to rely on the fruits of our labor to accumulate our wealth. The salary should be raised at inflation plus compensation when employees are more productive.