Trying to build savings? Here’s what not to do
This year resolution is save money for a rainy day or buy a new house. You thought it out and figured out some ways to cut back. But, not so fast. Just because you save today doesn’t mean you’ll save in the long run. The whole point of saving money now is to build more security for later. If so, takes these five idea off your cost cutting list for the year and focus on other way to save.
- Not paying into a 401(k) The cash could come in handy now, so you’ll start your 401(k) next year. But with that mindset you might keep putting it off for year to come. So start now, especially if your employer matches your contributions.
- Skimping on health care. Of course you can save a little money by ignoring that nagging aches, instead of having it checked out. But it could get worst and could cost you more and longer recovery.
- Neglecting home and car maintenance. Skipping oil changes? Not changing air filters? You may be increasing energy cost. Ignoring common maintenance could possibly lead to serious expenses and safety.
- Paying the minimum on credit cards. It’s always important to pay your credit cards each month. But it won’t get you out of debt. Your payment will only be going towards the interest not the principal. Pay off your cards in full this year. It will be worth it when you gain financial freedom of not having any debt. Once they are paid off put them away.
- Reducing your insurance coverage. You feel like lowering your coverages to save a little money. Think carefully, before you start cutting coverage, and consult with one of us here at Quantum Insurance Group. The cost of a serious accident or natural disaster couldn’t easily be over your coverages.
Lowering these coverages may put more cash in your hand now. But in the long run, it may cost you more.