Would you like to enjoy a lifestyle that is relatively debt-free? There are several effective tactics that people have been using for decades. The techniques cover the whole range of living expenses, including car buying, finding scholarship money for college, getting the right kind of life insurance, and paying a sensible price for your first home. It’s important to be realistic if you aim to minimize debt. The vast majority of working people carry either a mortgage or a car payment, or both. Credit cards are one area where debt can get you into trouble. That’s because, in addition to high interest, people tend to use cards too often.
What’s the solution? If you want to stop stressing about money every day and rid your budget of high-interest debt, especially the plastic kind, be careful about the big outlays, watch your daily spending, and work hard to build up an emergency fund equivalent to at least three months’ income. Here are four specific ways you can improve your lifestyle by covering major expenses in an intelligent, planned way.
Be Savvy About Vehicle Purchases
There are a few easy ways to get areliable car for less than you’ve been paying in the past. First, use a broker who can search dealerships for you. They charge a fee but will save you a lot in the long run. Next, resolve to avoid buying a new car. Instead, stick with one- or two-year-old models that have low miles. Then, consider buying a standalone extended warranty to cover major mechanical problems and routine repairs.
Scholarships for College
College degrees can be expensive, but scholarship money can ease the pain in a big way. They represent the single most efficient way to pay for schooling. The good news is that you can use a free online search platform that does several things at once. The platform personally matches you with thousands of scholarships and grants to cover some or all of your educational expenses. Once you build a simple profile, the platform will match you with suitable scholarships and let you apply then and there. Vast amounts of scholarship money go unclaimed every year simply because no one applies for it.
Buy Life Insurance the Right Way
It’s easy to spend too much on life insurance. The simple way to save is to purchase term instead of whole life. Buy when you are young and feel as if you do not need coverage. Finally, compare rates. Carriers often charge wildly different prices for the same kind of coverage. Some people prefer to use brokers who can search multiple companies for the best deals based on your age and other factors.
Your First Home
Never buy a home in a rush. Take your time shopping for a suitable, affordable property. First, find an experienced agent who knows the neighborhood and specializes in working with first-time buyers. Save as much as possible for a down payment and try to qualify for the FHA program if you can meet the criteria. Spend at least six months cleaning up any credit glitches before applying for a mortgage.