Get ready to get RICH! If you’d like to be rolling in dough, here are some guidelines that’ll help you make the right financial decisions. We got these from Money Magazine.
- To save money when you buy a car. buy a late-model used car and drive it until it’s junk. Why? Because a car loses 30% of its value in the first year. Buying a “pre-owned car” means you’ve let someone else drive those expensive early miles. Of course you’ll wanna do your research and look for a reliable model. But today’s cars can generally be expected to rack up six-digit odometer numbers before needing any major mechanical work.
- When you buy insurance, choose the highest deductible you can afford - it’s the easiest way to lower your premium. Here’s the deal: when you file a claim, your premiums go up. So for that reason, it’s in your best interest to take care of small damages out of pocket – as much as you’re able to. For home insurance, raising your deductible from $500 to $1,000 dollars could save you 25% on premiums, according to the Insurance Information Institute.
- To figure out what percentage of your money should be in stocks, subtract your age from 120. Since the 1920s, STOCKS have returned an annual average of 10.5 percent. In other words, if you’re investing for the long-term, stocks are the place to be. But in the short term, the stock market can be downright dangerous. That’s where this rule comes in: the younger you are, the more time you have to recover from stock-market crashes. As you get older, you should gradually move money out of stocks and into something that doesn’t fluctuate as much.
- Resist the urge to buy the latest electronic gadget as soon as it comes out. Just like cars, electronics cost the most for those who want to be first with the latest cool thing. So, let the gadget freaks get their fill - then go shopping when the market has calmed. You’ll save a bundle.