A few simple lessons on savings and our whole country would be in great shape. It's common sense advice - we just have to use it! Help me spread the word on the three savings lessons below.
The First Savings Account You Should Fund
The first savings account you should fund is one that will cover 6 months of your living expenses in the event you lose your job. It will give you enough money to tide you over until you can find a new position. If you fund no other accounts, fund this one. It could be paramount to you and your family’s financial survival.
Always Pay Cash
Save, invest, and always pay cash. If you have money in the bank, you reduce your stress level and empower yourself. Only buy things you need and can pay cash for. Never buy anything you want that you do not absolutely need (e.g. if you have a operating TV don’t replace it just so you can have the latest and greatest set, that’s what the marketing and finance industry people want you to do, that’s how they pick your pocket). As I stated this applies to homes, automobiles, appliances, etc.
Pay All Bills Immediately
Pay all bills immediately upon receiving them. On paper it make sense to keep that money in your account until the last minute but over the period of several years, one late payment will cost you much more than the money left in your account for a few more days will have earned in interest. Also if you get in the habit of paying your bills as soon as received, it is much less likely you will miss a scheduled payment and incur a late charge. The billing paperwork will not get misplaced or covered up on your desk or kitchen counter.
Next: Lesson Four: On Debt - Retire on The Money You Save on Interest
