Top 10 Ways to Manage your Money Effectively

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Pay your insurance premiums annually. This is another simple tip most consumers never really take advantage of. Many people do not have the full annual premium amount up front, so they opt to pay monthly or at other intervals. You can save a ton of money if you pay your insurance premiums in full once a year. Try paying your homeowner’s or automobile insurance one year in advance, you will save a bunch and you may find (especially with auto insurance) that the next year’s premium will go down. Auto insurance, as we just mentioned, will discount you if you are a safe driver too. So, imagine the money you will save should you be accident/ticket free and you pay the premium once a year.

Stay away from dealer financing when buying a car. Again, many people stroll up to the car lot pick a car out and walk inside and except the terms of the dealer’s desire financer. Do not do this. Shop a good loan first. Check your local credit union, you may be amazed at the rates and you many times don’t even need to be a member there either these days. After you find the best rate you can get from shopping the loan – then go to the car lot pre approved. Arm yourself with financial smarts all of the time if you want to get out of debt earlier in life. When you use dealer financing, you are many times not getting the best rate and you are probably going with a bank that is in some association with the car dealer – meaning they probably make money when you go with their desired bank. Also, when you show up with your own financing (pre approved ahead of time) you will have a bigger bargaining chip for other negotiations such as car price and rebates.

Dollar cost average your way to wealth. When you are dollar cost averaging, you are simply investing a fixed amount of money on a regular basis, like on a mutual fund or dividend reinvestment program. By investing with this self disciplined financial strategy, you can slowly and steadily reach your long term goals financially.

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