You have enough choices to make in life – what to wear, what to eat, who to date – so let me take some decision-making out of your hands. These are the no-brainer answers to some financial questions. Memorize these and you’ll be prepared for a lot of the little money decisions life throws your way. We found this in Money magazine:
- Should you open a new store credit card? The answer should automatically be “no.” The next time the clerk says – “if you open up a card today you can save 10%!” Just say, “no thanks.” It sounds like a great deal, but here’s the rub. The interest rate on most store credit cards is 20%. So unless you pay off that card immediately, in a month, you’ve already wiped out the 10% you saved. Plus, the new credit application will hurt your credit score and you’ll have another temptation to spend. So just say no.
- If a store asks if you want an extended warranty – say “no.” The extended warranty will cost from $30 to $200, but electronics are reliable nowadays, it’s unlikely that you’ll ever need it. Besides, if your computer breaks in two years, you’ll want a new model, not a replacement.
- Buy regular gas. Premium gas is 8% more expensive – and no matter what the manufacturer says – Money magazine says cars don’t need pricier gas to run smoothly and resist wear and tear.
- Your automatic answer the next time a sales clerk asks “debit or credit” – credit! That means your debit card will be processed over the credit card network. You’ll have more liability protection and less chance of paying a fee.
- If you get an email asking for your account information or your social security number – no matter who it comes from – just hit delete. No reputable financial services firm will ever ask in an email.