There are many ways to save money. You can stop at restaurants, buying new clothes, cut your cable TV or your Internet service.
But what points you should absolutely never cut your budget, no matter how little money you can just feel?
Here is a list of items that should never be cut, no matter how you feel broke. Make sure that you spend every last penny to pay for these costs, even if you take a second job to pay for it.
# 1: Health Insurance
Did you know that two thirds of all bankruptcies are directly medical expenses together? There is no limit to the amount of the hospital bills they can stretch.
If you have a car, destroying more money, you may lose the value of the car (without, of course, all medical costs along to the car accident.) This means that your problem is probably not more than $ 20,000.
But hospital bills can easily stretch into the six-figure mark. If you have a serious illness or injury, medical expenses can vary in the millions. It is more common than you think.
If your employer does not offer health insurance, you can buy your own individual plan. If you think that the individual plans are too expensive, consider the cost of not having one., If you really are struggling to make payments, you choose a plan that has a high deductible.
After graduating from college, I bought a health insurance policy with a deductible of $ 5,000. Obviously I have never counted on this plan for a flu shot, contact lenses or other standard office visit. I knew if I got sick and had to go to the doctor, I pay the bills out of pocket.
But with my high deductible plan $ 5,000 that the comfort of knowing that my "problem" has had internationally. If I seriously ill or injured, the more money would pay would be $ 5,000. It would be fun to make these payments, but it would certainly be better need to pay up to $ 40,000 or more.
# 2: Home Insurance
After the cost of their health, the second largest bill that you never pay more for your home.
Maybe by fire, tornado, earthquake or other disaster - - Disaster your home is destroyed you happen to be on the hook to pay for the loss, unless you have home insurance. And if you think that the mortgage payments are hard now, wait until you pay two mortgages: one for the house in which you live, and for the house that was destroyed.
Many lenders and mortgage companies want to protect their assets, so they collect the insurance as part of your mortgage. In other words, if you pay your mortgage, you can now pay for insurance. But check your loan documents to make sure.
In addition to re-evaluate your insurance at least once a year to ensure that you have enough coverage. Has inadequate insurance is almost as bad as having none.
# 3: Auto Insurance
I know, I know I always talk about insurance. But that's because it's pretty damn important.
It is against the law to drive without at least a minimum level of mandatory car insurance in the state. It does not take much more for you little extra protection which will cost to pay for damage to your vehicle and the vehicle elsewhere. You must also include liability protection, which covers injury in an accident.
Remember, assault is a bill of health, and be the cost astronomical.
# 4: Debt restructuring
If you pay a high interest credit card debt, and 29 percent of the cost of APR credit card, it is difficult for you afford not to pay as soon as possible. Every month is a high interest loan to pay ever deeper into a hole.
However, if you have lower interest debt such as a mortgage or car loan at a reasonable price digit, you can not have so far to the urgency of this loan.
Before you rush to pay low interest rate that debt, you should focus on creating an emergency fund and retirement. This brings us to the next point ...
# 5: Your emergency fund
You will be amazed at the comfort of knowing that if you know that you are to have a salary for a few months to deal with any emergency that may arise.
If something unexpected happens, that would be needed earlier to break the credit - as burst pipes in your bathroom - you'll be able to pay the bills immediately, without going into debt.
Further to your emergency fund, the only time that you add to maximize your first 401 (k). This brings us to the next point ...
# 6: Your employer 401k match
If your boss matches your contributions to 401 (k), made the most of this opportunity. If you are a match of 50 cents for every dollar you invest, up to the first 6 percent actually wins 50 percent "guaranteed interest" 6 percent of your salary. This is important.
Once you have optimized your employer match, high interest focus on the construction of an emergency and the refund of the money debt. At the same time, make sure you do not skimp on their insurance plans. Insurance is the best protection against falling you further in debt.
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