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14 Explosive Personal Finance Tactics.

April 3, 2017 by  
Filed under Money/Business, Weekly Columns

(Akiit.comIt doesn’t matter whether you’re financially well-off or just lead a modest lifestyle with an average salary job. Everyone should have some degree of financial planning in their lives, from the moment they leave college up until the time they retire. And even in our twilight years, we still need to exercise some caution on how we spend our money.

Some people may tell you that money is there to get spent. While that’s true, if you are not wise with your cash, you could end up broke or bankrupt! That’s why it makes sense to pay attention to these 14 explosive personal finance tactics:

  1. Carefully build up a credit history

It’s no secret that people with a bad credit history are far more likely to get declined for loans and credit cards than those with a “good” credit report. However, what you may not know is that having no credit history at all can also mean you don’t get accepted for credit!

If you’re new to the world of lending, it’s worth taking out a credit card from your bank. That’s because they can see how you manage your accounts with them. Plus, as an established customer, you are more likely to pose a better “risk” to them than a non-customer.

  1. Automatically save money each month

It doesn’t matter whether you save $10 or $250 each month. When you get paid, you should automatically allocate some of your pay to an emergency fund. Of course, it doesn’t have to be money for unexpected bills. You could use the fund to pay for a large expense, such as a car or motorcycle. That way, you wouldn’t have to end up in debt to pay for larger purchases.

  1. Reorganize your student debt

If you don’t have any student debt, you can cheerfully ignore this section. But, if you’ve had to borrow money to pay for your tuition fees, it’s time to reorganize it. Why must you do that, I hear you ask? The answer is simple: you don’t want to pay more interest charges than you need to.

It’s worth looking on the market for deals on low-interest consolidation loans. That way, the total balance you have to pay back can be less than you originally anticipated, meaning it will take you a shorter time to pay off your student debt.

  1. Contribute to a retirement plan

There will come the point in your life where you won’t be working anymore. For most people, it’s because they reach a retirement age and want to enjoy their twilight years. Of course, for others, it could mean they have to retire early for medical reasons.

In either case, you need to have a retirement fund to help you pay your bills when you’re no longer working. A 401(k) retirement plan can ensure that happens – but you must start paying money into it as soon as possible.

  1. Get on the property ladder

Aside from giving you somewhere to live, buying a house or an apartment is a major step for investing in your future. That’s because the value of your property will most likely rise in years to come. As you get older, you may decide that you want to live elsewhere or need some money to buy a new car, for example.

With enough equity in your home, you can either sell it and move elsewhere, or remortgage it to free up some capital.

  1. Save instead of borrow

We all know that the benefits of saving can often outweigh those of borrowing money. Yes, for some types of purchases like properties and vehicles you may need to borrow some cash. But, for most other things, you could just save some money instead.

Saving helps to keep your costs and expenses down, giving you more money available to spend on whatever you want.

  1. Don’t buy brand new cars

For many people, the thought of driving home in a brand new vehicle is quite a tempting one! The thing is, the car devalues even before you drive it out of the dealership’s showroom. Instead, it makes sense to purchase a used vehicle or lease a brand new one.

With the latter option, you only have to commit to keeping the car for three years or so. After that period, you could set up a new lease on another brand new vehicle or opt for purchasing a used one outright.

  1. Keep your credit report in tip-top condition

Do you know how healthy your credit report is? If the answer is no, you ought to be checking it at least two or three times annually. All too often, many people have discrepancies on their credit files that could prevent them from taking out a loan or a mortgage, for example.

If you do discover a problem or even a fraudulent entry on your credit report, websites like can help you fix them.

  1. Pay less interest on your borrowing

Just because you’ve taken out a loan or credit card with one provider doesn’t mean you have to stay with them! A quick search online will reveal a plethora of providers that offer low interest rates on new credit cards and loans. There is also an abundance of interest-free credit card offers suited to those doing balance transfers. Why pay more interest than you need to?

  1. Do an annual review of your regular outgoings

Everyone has to pay for things like rent or mortgage payments, utility bills, cable TV, insurance, and so forth.

Each year, you should make it your mission to review whether the companies you use to supply those services are still giving you a good deal. If you find that you can get a better service at lower prices elsewhere, it’s time to switch. Doing so can free up extra money from your pay each month that you can use on other things.

  1. Free up some cash from your unwanted assets

Let’s face it; we all have things in our homes that have some kind of value yet we seldom use them. When the weather isn’t great outdoors, and you’ve got some spare time, why not evaluate what assets you could put on eBay to free up some cash?

You could even hold a garage sale, or advertise on other classifieds sites like

  1. Make sure you’ve got the right mortgage

Do you have a mortgage on your home? If so, you may have forgotten that the introductory interest rate on it might end at some point! Before that happens, compare quotes for mortgages from other providers. Doing so could save you thousands and even mean you pay off your mortgage sooner than anticipated!

  1. Create a passive income stream

Even if you’ve got a well-paying day job, there’s no harm in having some extra cash. It’s even better if you could earn money without doing much work! Believe it or not, there are scores of passive income ideas that might suit you. For example, you could rent out some space on your driveway if you live near the city center. Or, you could sell an ebook on Amazon if you’ve got a story you’d like to share.

  1. Don’t have joint finance with your spouse

Except for mortgages, you should keep your financial affairs separate from your spouse. If they have problems with their credit and you can’t pay off any joint borrowing, it could damage your credit rating too.

Staff Writer; Craig Love

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