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Resurfacing the sidewalk. Just submit your resume in person. Go out there to shake hands, why not!
All of us have heard these financial jewels of wisdom from our parents (not always because we asked). Despite their best intentions, many of the techniques provided by our elders are still…outdated. To say the least.
Here are six suggestions from parents that no longer apply to us at all-there are some smarter choices.
1. Work through university
In the past, choosing a university to study was a choice-when the tuition fee was reasonable, this choice was fine. But that was a long time ago.
Since the 1980s and 1990s, tuition fees at most universities have easily doubled or tripled. Working while in college can help pay the bills, but it won’t pay for college fees. This is why many of us are burdened with student loans.
Once you graduate, refinancing can help you pay off your loan faster and save money in the long run. By combining multiple loans into one, you will replace your federal and private loans with a single private loan.
In addition to simplifying the repayment process, refinancing can also lower your interest rate and lower your monthly repayment amount.
2. Deposit money in a savings account
This is the standard parental advice: open a savings account. That is the best way to save money.
Yes ok, beautiful. The problem is that because interest rates are so low, savings accounts these days will pay you almost zero interest. You might as well stick some cash under the mattress.
However, debit cards and digital accounts are called ambition Allows you to earn up to 5% cash back and up to 16 times the average interest on the funds in your account.
Not too shabby! You just need to keep up with the times, without having to use a physical bank.
Enter your email address here To get free Aspiration spending and save account. After confirming the email, please link your bank account securely so they can start helping you get more cash. Your money is insured by the FDIC, and they use military-grade encryption, which is a weird statement about “it is absolutely safe”.
3. Always buy a house-this is a huge investment
This is an old song, but it is also a good thing. I can still hear the voice of my parents: Why are you still renting? When are you going to buy a house? This is a huge investment!
The problem is that buying a house is not for everyone, especially at such high prices today.
It is easy to have compelling reasons for any choice. Tenants don’t have to worry about the housing market or mortgages; buyers can get tax breaks and ways to invest in the future.
There is no one right answer, because every financial and living situation is unique, and people’s priorities will change over time. Where you plan to live and how long you plan to live there is an important factor in deciding whether to rent or buy a house.
4. Buy savings bonds
What is a savings bond? You may remember that they are things that boring grandparents use to give you birthday gifts.
Savings bonds are an ancient, ultra-low risk investment. Most savings bonds earn 30 years of interest. But the problem is, they really won’t make a lot of money for you. For example, the interest rate on EE series bonds is as low as 0.1%.
These days, you’d better invest your money in stocks. Of course, as stock prices rise and fall, the stock market may fluctuate. But historically, investing in the stock market will bring you 7% of profits over time.
Whether you have $5, $100 or $800 in savings, you can start making the following investments: Robin Hood. Investing beginners and professionals like it because it does not charge commissions and you can buy and sell stocks for free-no restrictions. In addition, it is very easy to use.
What is good to be you Download app And fund your account (no more than a few minutes), Robinhood will put a portion of free stocks into your account. However, it is random, so the value of the stock ranges from $2.50 to $200, which is very helpful to help you invest.
5. If you don’t have a degree, you will never find a job
Of course, many occupations require a college degree. But a lot of work is missing. Higher education is not for everyone, and there is no law that requires you to enter a university.
Did we mention that universities are very expensive now? Student loans are a heavy burden. Americans’ student debt totals $1.5 trillion. Graduates with student loans usually owe between US$20,000 and US$25,000, with at least 20% defaulting on their repayments.
There are other options. For example, have you considered bookkeeping? According to Intuit, the creator of QuickBooks, starting your own bookkeeping business, you can earn $69 an hour.
You don’t need to be an accountant or be good at calculus to book successfully. As long as you are motivated, a company called Bookkeepers.com will teach you everything you need to know.This is one of the leading training courses in the field, even Provide you with the first three lessons for free.
It helped thousands of people start their own businesses, including veterans and former painter Daniel Honan (Daniel Honan). He signed up for Bookkeepers.com and now earns $50,000 per year. It only took him three months to start learning, with one class a week. Oh, he made his own schedule.
If you are just a little curious, you just need Submit your email address here Take the first free class. If you stick to it, you may run your own business in just a few months.
6. Rely on social security and pensions to retire
First, you may not have a pension. Unless you work for the government, pensions are no longer a thing.
Nor should you rely solely on social security to retire. The social security plan is a supplement, not your entire retirement savings.
To retire comfortably, you need to steadily deposit a healthy percentage of your salary into your 401(k) account-in fact, this is one of the smartest things you can do in the future.If your employer matches every contribution, it could mean a few millions The U.S. dollar balance in your account at the time of retirement. This is free money!
However, if you cannot take advantage of this employer benefit because you need all your salary each month, a company Loan table Will give you cash.
We know this sounds really good. However, if your employer has a 401(k) matching procedure, this is the money they have designated for you. By using Lendtable, you will be able to unlock these free cash.
Suppose your annual income is $50ka, and your employer matches your 401(k) contribution up to a maximum of 4%. If you deposit $0 in your retirement account this year, you will get $0 from your boss. If Lendtable gives you 4% of the salary that your employer is willing to pay, you will get $2,000 from your boss, minus Lendtable’s profit share. (This is the extra money you earn, so you don’t have to pay anything for it.)
It took three minutes Answer a few questions about your qualifications And register for an account.
Once you get the full subsidy from your employer, Lendtable will get back the money they lent you, as well as a small portion of the profit. If your retirement account provider is penalized for collecting money, Lendtable will also compensate for it.
Your risk is basically non-existent. Therefore, not taking advantage of the employer’s matching Lendtable’s offer will put the “millionaires of the future” to shame. Start here.
Mike Brasfield ([email protected]) Is the senior writer of The Penny Hoarder. His father gave him reasonable financial advice: “Never bet on the house.”
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