8 USEFUL TIPS TO TAKE CARE OF THE ECONOMY OF YOUR POCKET

We all care about the money that costs us so much to earn and we want it to reach us as much as possible. We skimp, we "pinch", we try to feed our "pig". But sometimes we go too far.

1. Pay equally

 When you have multiple debts, you try to keep up with all of them, paying at least the minimum values. But if you pay them equally you could harm yourself. Higher interest debts grow faster, so it is recommended that you focus on paying these off first.

 2. Buy on sale

Buying a coat at $ 50 when it normally costs $ 100 is good if you planned to spend $ 100 on a coat. But if you only buy it because you saw it on sale, you spend $ 50 for no reason.

Do not let the offersReferred to the goods and services that are provided within the market for marketing. Action that a group of consumers will take generating demand in the market for a good offered. The offer also refers to the commercial fact that implies a price reduction for the acquisition of certain products when demand falls. make you spend more than you plan, with the motto that they make you save Save money for the future, reserve part of the ordinary expense or avoid a greater expense or consumption, therefore, it is the difference that exists in the disposable income and the Spending incurred. This is especially true when there are "limited time offers" that make us make hasty decisions that we may regret later.

3. No insurance A contract that transfers a financial risk from one party to another in exchange for an upfront fee called a premium. Contract by which a person, natural or legal, is obliged to compensate losses or damages that occur in people or things that are at risk.

Insurance payments subtract money from our accounts. Let's say you spend $ 50 each month on auto insurance and $ 75 on health insurance. It is reasonable that you prefer not to have insurance and save this money. Maybe you don't need all the insurances that exist, but stopping having basic insurances, like health insurance, could make you spend a lot of money. Choosing which insurance to buy depends on the uncertainty regarding the future value of an investment. More uncertainty implies greater risk. An indicator used to measure risk is the standard deviation of the price of an asset. that you can assume, but if you don't have health insurance and you have to go to the hospital, can you pay bills of hundreds or thousands of dollars?

4. Pay the minimums

Pay only the minimum of your credit cards It is the use of other people's capital for a certain time in exchange for the payment of an amount of money known as interest. It can mean saving in the short term, but it also means paying more in the long term. If you owe $ 5,000 in credit cards, with an interest, it is any sum that the creditor receives or is entitled to receive over the adjusted capital. 20% and a minimum monthly payment of $ 200, it will take almost 12 years to pay the debt. In the end you will pay about $ 8,400, of which $ 3,400 is extra to the amount you borrowed. If you raise the monthly payment to $ 500, you will pay the debt almost 8 years earlier and you will have saved almost $ 2,500 in interest.

5. Buy cheap things

Buying a thing for little money is not a bad thing, but if you must buy something that you will need to use for a long time, consider quality as well as price. Calculating the cost per use can help you. For example, compare the purchase of shoes that you will wear once or twice and cost $ 50, with the purchase of pants that you will wear twice a week for three years, for the same value. The shoes will cost $ 25 each worn and the pants 32 cents. Spend your money where it has the greatest impact.

6. Don't save for retirement

If you contribute little or nothing to any retirement fund, you will have more money now, but not later. If you save $ 5,000 a year from the age of 25, you can retire at 65 with about $ 1.4 million in savings. If you start at 30, your savings drop by almost a million (calculated based on an 8% rate of return).

7. Eat junk food

Fast food is cheaper than healthy food. So obesity is related to poverty. It is sad and unfair, but real. Eating a hamburger saves us money (and it tastes delicious!) In the short term, but it can cause long-term health problems, such as heart disease or diabetes. Good health is more important than money. Taking care of yourself now is a great way to save in the future.

8. Not dealing with legal issues

Most of the time we do our own things, but sometimes it is advisable to lean on others. For example, if you have children you must have an updated will, as the opposite may mean leaving your family in a bad situation and causing them high legal expenses in the future. Whether you make your own will or pay an attorney, you shouldn't leave this issue of