We all know about the huge ups and downs of the economy in the past year. This is the time of year we are looking for ways to save on our taxes, etc. There are 3 big ways to use our money more effectively in today’s market.
1. Saving is at an all-time high. It’s easy to see what we have saved and wonder what to do with it. Really focus on consistent saving. Stay on track and don’t get tempted to buy something you may regret a year from now. Keep investing in your 401K even if your employer has stopped matching. An extra fifty or a hundred dollars a month can make a difference.
2. Pay all of your credit card debt. The credit card companies are going to implement the new rules. Just keep an eye out for new types of fees like nonusage fees on cards you might have had for some time now. Don’t spend money you don’t have. It will make the new purchase sweeter if you save to buy it, I know waiting is the pits but you will be better off for it.
3. Real estate market – is it the right time to buy? Record lows on loans, stimulus packages, and more tax breaks might not be enough of a reason to buy. Buying real estate is always a risk. If you can afford to put your own money in to remodel a new buy then do it. But to borrow more money to fix it up when it’s unclear what type of ROI you might get in the future is very risky. Really evaluate the neighborhood before you leap.
Share any new ideas you may have.