Saving cash
Monday, October 19th, 2009Set up a monthly direct debit to put money aside in a high- interest account, so that it can be used as a rainy-day fund.
Pay off more expensive debts first. If you are getting a lower rate of interest on your deposit account (after factoring in the tax) than what you are paying on your home loan, then there is no use in saving the money, it is better to pour the extra savings into your mortgage.
It is better to pay and buy. If you can’t afford something one month, better wait until you have the money. When calculated you will find that you are paying more money, when you buy something in instalment.
Use your credit card sparingly, take out the plastic only when you absolutely have to have that half price dress in the sales. But pay it off before it incurs any interest.
Always shop around when contracts come up for renewal. Compare all available deals on phone, broadband and insurance. Do not forget to ask your existing provider for special offers.
Buy treats with reward point’s schemes. Many cardholders do not use their points. You can also take a free holiday using your credit card points, to pay for your tickets. Spoil yourself; after all, you deserve it.
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