FinanceU has collected 10 best tips for your personal finances. Read on here and find out more about whether you can find improvements in your finances.
- 1 1. Installment Loans Can Be An Expensive Option
- 2 2. Take Advantage Of The Deductible To Reduce Expensive Loans
- 3 3. There İs Often A Way Out Of The “Luxury Trap”
- 4 4. Private Consumption Can Be Difficult To Control
- 5 5. You Can Make Money On Your Loan
- 6 6. Contribution To The Pension Scheme
- 7 7. Prices when buying a home are usually negotiable
- 8 8. There Are New Financing Options For Holiday Homes
- 9 9. Leave The Return On Your İnvestments İn Your Pockets
- 10 10. The Cost Of Car And Boat Financing Can Vary Widely
1. Installment Loans Can Be An Expensive Option
If you choose an interest-only loan, then you pay a higher contribution rate on your entire loan, so it can be an expensive solution. Many people say that one should opt for an installment credit union loan to repay the more expensive home loan first, but it can be an expensive solution.
2. Take Advantage Of The Deductible To Reduce Expensive Loans
House prices have risen considerably in recent years. It can be used to great advantage to replace expensive loans with cheap loans, but be aware of the costs.
3. There İs Often A Way Out Of The “Luxury Trap”
It is just important that you do not give up, but do something about it. Call those you owe money to and make a settlement agreement that is realistic.
4. Private Consumption Can Be Difficult To Control
By using the box / envelope system, you can often save between 1,000 – 1,500 $ per month, as there is a greater focus on consumption and many impulse purchases are avoided.
5. You Can Make Money On Your Loan
If you have a fixed rate credit union loan, then you can actually make money on your loan if the interest rate rises. It is therefore important to follow the interest rate development, as approx. 20% of the outstanding debt if the interest rate rises by 2%.
On a loan of 1,500,000 $ this will mean a tax-free write-down of 300,000 $.
6. Contribution To The Pension Scheme
It is not certain that your company will be sold for a lot of money, so it is important to “play on more horses”.
7. Prices when buying a home are usually negotiable
Did you know that the average price reduction is around 6% on homes? Therefore, good and strong negotiation techniques through an independent advisor are often your strongest card, as they are not “in love” with the home.
8. There Are New Financing Options For Holiday Homes
The new legislation provides better financing options for holiday homes, it allows for a better loan composition and thereby saves a lot of money.
9. Leave The Return On Your İnvestments İn Your Pockets
Choosing the right one to invest your fortune or pension can be a difficult and unmanageable one, but there is a lot of money to be saved and it is not unnatural with a difference of up to 50 % in the cost.
10. The Cost Of Car And Boat Financing Can Vary Widely
If, for example. must borrow 250,000 $ for a car and you are offered 5% over 7 years, then you will pay approximately 3,530 $ per month and 46,800 $ in interest during the term of the loan, while if you can negotiate at 2% in interest and still pay 3,530 $ per month. Then you will only pay approx. 16,000 $, which is a saving of 30,000 $.