Anyone of a certain age has heard of the "three Rs" of education - reading, ' riting and 'rithmetic - but there are some life skills any of your studies will teach. In fact, it takes a lot more these days to pass after the end of your schooling, especially when it comes to ensuring that you have the financial resources to take care of you and your family. Here are five life hacks that you can not learn in school.
1. Paying off debt
Recent statistics from the Federal Reserve show the average American household is between $ 7,123 and $ 15,270 of credit card debt and $ 32,258 of student loan debt. In addition, the Federal Trade Commission reports that many people face a financial crisis at some point in their lives, either because of illness, loss of a job, or overspending. This debt is an imminent problem in just these situations.
Whatever you got in trouble, get out of debt is one of the most important things you can do to ensure a solid financial future. The FTC said an important first step is to create a household budget, ensuring the amount you take in each month exceeds your expenses. Once the expenses are under control, use the extra money to pay off credit card debt as quickly as possible, starting with the cards that have the highest interest rates. You may also want to consider the counsel of credit or debt management, but make sure to do your homework to avoid scams.
2. Negotiating a pay rise
The companies expect moderate wage increases of 2.9 percent for their non-management salaried employees in 2014, according to a survey of 910 US companies by Towers Watson, a global professional services company. Employees should not sit and wait for a raise, however - they should ask. When requesting an increase, experts recommend arming yourself with facts about the financial performance of your business and the salaries of others in comparable positions. And when you do ask for a raise, do not say it because you need the money. Focus on the value you bring to the company, as higher earnings or acquisition of new customers.
3. Buy a house
With debts under control and better pay up, many people start thinking about buying a home. One of the first things to consider is how long you plan to stay in the house. The initial costs of buying a home, including closing costs and estate agent fees, you can lose money if the value of your home does not increase the time that you plan enough to sell. Many experts advise to stay in your home for at least three to five years, but a mortgage calculator can help you manage the numbers. You should also consider other expenses such as home insurance, property taxes, association fees and maintenance.
4. Save for the future
Whether a house, a car, college education of the children, or your own retirement, saving for future may seem daunting, if not impossible, but it is easier than you might think. It begins by creating a household budget (see point # 1). Then adopt a mindset of "paying yourself first" - agree to set aside a certain amount of savings each month and treat that as you would any other project household bill to be paid . Finally, start saving as early as possible to take advantage of compound interest (This earning interest on your interest.). A common rule is aimed 50/20/30.
5. protect your assets
Even if you earn a good income, have no debt and are diligent about saving for the future, few could absorb the cost of a catastrophic event such as an illness or a major accident. that's where insurance comes in. insurance allows you to drive a car knowing that the cost of repairs or medical care will be covered in case of accident. It also allows you to own a home knowing that it can be repaired or replaced if it is damaged or destroyed. life insurance can even give peace of mind knowing your family will be supported if something happens to you.
"Insurance is an essential element of any financial plan because without it, you could lose everything you've worked so hard for a single catastrophic event," said Rick Burt, vice president Executive of products ERIE.
Although car insurance and home insurance are often mandatory, Burt recommends consumers consider personal umbrella insurance and life insurance. "A personal umbrella policy gives you an extra layer of protection beyond your auto and home insurance in case you are sued because of an accident. And life insurance is essential if your family depends on you financially. - If you are the main breadwinner or the person taking care of things at home "
for more information or to find an Erie insurance agent, erieinsurance.com visit.
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