The Advantages of Saving Money

The ability to save for all the things you need will put you in a much better financial situation in the long-term. It will mean you pay less for whatever you are buying and places you in a less stressful situation. Mind you some borrowers just don’t care that they are in debt as long as they are able to pay it back.

The crunch comes when there is a job loss or some health issue arises and there is no money in the kitty to pay the bills.

A person who has set up their finances properly will factor in these types of emergencies in making their financial plan.

Saving money is a no-brainer; here are the five main reasons for not borrowing.

1 NO DEBT

Borrowing money for the things you need or want puts you in debt. It means that you are indebted to someone else. Sooner or later it all has to be paid back along with the interest. The debt is not going away until it is paid off so there is no point in burying your head in the sand if you are indebted to your creditors. Creditors have every right to expect repayment of their money whether they are the bank or other lending institution or a family member.

2 COST OF BORROWING

There is a cost attached to borrowing money and that cost is interest which is sometimes referred to as “Dead Money.” Paying interest on the stuff you buy on credit adds to the cost of the item. The habit of purchasing goods on credit adds up to a massive amount over the course of your lifetime. That interest money could have been used to build a nest egg. Commercial debt is the worst type of credit spending because the item which has been bought on credit loses its value as time goes by. Another name for commercial debt is dumb debt.

3 READY MONEY FOR EMERGENCIES

Emergencies crop up from time to time. The car breaks down, the washing machine needs repairing, you suffer a tooth ache and need to go to the dentist, you need a new pair of spectacles. There could be anyone for a number of reasons for financial emergency. If you have money set aside for these then you can tend to these emergencies without worrying about whether you have the money to pay for them. Every responsible person has an emergency fund on hand to cushion them against financial shocks which can occur from time to time.

4 A NEST EGG FOR THE FUTURE

Saving money means you are able to build up a nest egg for the future. If you are a responsible person you will have a retirement scheme of some kind where a portion of your pay goes into the fund. In New Zealand it is called Kiwisaver. I can not stress enough how important it is to be enrolled in Kiwisaver if you are from New Zealand. The government incentives make this scheme a no-brainer. Your country will have its own scheme with it’s benefits.

5 TAKE ADVANTAGE OF SPECIALS

If you have no money then you will not be able to take advantage of specials. That does not mean you should spend money on something for no other reason than it is special. Your own common sense and self-control should be employed here.

6 A DOLLAR SAVED IS A DOLLAR MADE

There is a saying that a dollar saved is a dollar made. The truth is a dollar saved is better than a dollar made because you do not pay tax on a dollar saved which is not the case when you make a dollar. Every dollar which you save can be working hard for you in whatever investment you place it in.

A competent money manager will not have any room in their vocabulary for such words as debt, credit, credit card, loan, lay-by, or hire purchase. In fact these are all dirty words to the person who wants to get financially ahead.

Having said all of this, there can be times when borrowing money can be worthwhile.

But…

And it is very big but.

You have to be absolutely sure that the payoff is worth your while.

Take a student loan for example; You need to be absolutely sure that the type of job which the course qualifications assist you with is something that you really want to do, otherwise the whole course will be a waste of time and money.

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Useful Tips on Home and Auto Insurance Policies

In case you are looking forward to getting in touch with an agency that will fully satisfy your insurance needs, then it is good to take time in your research. The report indicates that a thorough search is the way to go if you want to have all the insurance issues solved once and for all. In case you are asking how, then this article is, therefore, there to have all the quarries with ease. Take a moment to check on reliable sources, and you will find it easy to have all these issues responded. Use credible sources such as the internet, and you will get all that you need concerning hiring the right insurance agency. With internet research, it will become straightforward to get the insurance agency ate the comfort of your home. It will also require one to apply some internet bundles for browsing purposes. You will get it right if you use the online sources during the searching of the best insurance agency. The good thing with internet research is the fact that the client can gain access to a variety of insurance agencies within your reach.

With the application of the online directories gaining access to the essential contact details of the insurance, agencies are done with a fraction of a minute. Getting in touch with an insurance agency that will serve all your needs is, therefore, possible if you decide to shop various carriers for the competitive price and coverage. Take time to get in touch with an insurance agency that offers such rates. The service rates are an aspect you need not ignore if you are looking forward to saving more funds in the long run. Ensure you engage an insurance agency that is known to offer exceptional service as well as pricing for clients from far and wide. You will also need to get an agency that provides a variety of policies, including auto, home, mobile home, auto, motorcycle, among others. The fact that various people require different kinds of auto insurance is an indication that you need to work with the best insurance agency. This will, therefore, mean you need to make the right selection for an auto insurance agency.

Get an auto insurance agency that has policies that best suit all your needs. The fact that price is a significant factor when it comes to finding an insurance agency is an indication that lots of caution is required during the selection process. Making the right final decision, in the long run, is also determined by the kind of an auto insurance agency you choose to work with. On the other hand, it is good to work with a reliable home insurance agency to meet all your needs adequately. You may never joke with your home since it is among the most significant investments one can ever make. This will mean you need to also work with a team of experts to help you in making the right section. The fact that even picking a home insurance policy is a tricky process will mean that lost of seriousness is required during the finding process.

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