Debt Free Article

The least you need to know

This debt free article covers the least you need to know about financial planning, managing your debt, shopping, and saving on utilities and even investing your money. These are quick bullet point references that will quickly get you acquainted with each topic of debt free living. Be sure to check out the other sections of this article located on the debt free article main page (the link is at the bottom of this page or hit back on your browser).

Financial Planning

• The first step toward managing your money is making the decisions to start planning for your financial future

• Do not let mistakes keep you from making more decisions, Think of a mistake as something that will help you make a better decision next time.

• Write down your short term and long term financial goals and how much money you need to achieve them. Then, read the rest of this debt free website for information on how to achieve these goals.

• Grabbing good financial planning requires you to do your homework, and you have already learned the first part of homework and research – you are reading this debt free website!

Managing Debt

• To measure your financial health, add up the worth of everything you own and compare it to the cost of everything you owe. A financially healthy person should have twice as much in assets as he or she has in liabilities.

• To reduce debt, use some of your assets (such as your savings) and reduce expenses (pay off bills) so that you can pay off debt quicker and get away from high rates you pay on things such as credit cards.

• To keep your spending under control, you have to establish a budget. Budgeting basically involves recording how you currently spend your money and then figuring out how you can change your spending ahbits in order to achieve your financial goals.

• Filing for bankruptcy is not an alternative or a choice. It should be looked upon as a very last resort.

Shopping and saving on utilities

• It may very well be worth it for you to join a warehouse or wholesale supermarket (like Sam’s or Costco) if you normally but lots of nonperishable items and have the space at home to keep these things. Some of these warehouses carry other products such clothing and more too.

• Getting the best deal on long distance is easy; simply match your calling habits to one of a company’s plans. Always keep in mind, you do not have to stick with one of the big 3 companies either. Cut back on cable by deleting unneeded pay channels from your line up. Have a free energy assessment of your house or apartment done by your electric company – most provide this for conservation reasons.

• Buying stuff you see all the day long on TV is usually not a great thing to do generally speaking. You have to buy it with a credit card (even using a check card is not the best idea either here), and it is difficult to return these items as well. There are postage fees usually involved which end up losing youy money if you return an item.

• When you see ads in the paper or on TV for a department store sale, stick to the item you want if decide to go to the store. Many of these items will be out of stock, but the store gets you there and you spend on something else you may not need at all anyways.

Investing

• Take any investment advice you get – whether it is from a neighbor, the paper, or TV money show, with a grain of salt. Check out the sources and the facts for yourself before you invest a red cent in the market. You risk tolerance and affordability is different from these people’s tolerance.

• Keep your eye on key interest rates. They are a big influence on the stock market, bank ratea and the general economy.

• Step one is to understand properly what your broad financial goals are, how much money you have to play around with, and how much risk (as mentioned above) you can handle in case the market takes a big hit.

• Federally insured CDs and Treasury securities are the safest investments, buy you can make more money in stocks, bonds, and mutual funds over the long term.

• Do not be afraid to ask your banker or broker questions, especially if you do not understand something. Make certain that you are aware of all the fees involved that could be charged to you when you do business with them as well.

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