1.- Create and stick to a budget that is realistic
It means that you should always check your budget against your spending patterns. You can thereby accordingly readjust your spending habits and figure
2.- Don't make an impulse buy
Don’t buy anything you hadn’t planned and didn’t need just because you see and like it. Give yourself time to think about it, and it’s less likely you will have any need for it after thinking about it.
3.- Don't buy everything that is on sale
Buying a $400 item on sale for $250 isn't a $150 savings if you didn't need it. It's spending unnecessarily $250. It is possible that it may not have been a real sale because some store brings down the price of items to make their customers think it is a bargain.
4.- If it is possible, get medical insurance
A stopgap policy with a deductible can help you if a medical crisis comes up. Living without medical insurance is dangerous, and it is an invitation to the financial mess. If might be able to get access to the emergency room if it gets severe but you won’t get help with a chronic illness like cancer.
5.- Charge only the items you can afford to pay for immediately
Don’t charge an item based on your future incomes, let it go if you don’t currently have cash. Sometimes there could be an unforeseen situation that can make future income unattainable. Furthermore, you’ll be paying high-interest rates that can have a significant impact on your finance. Commit to living without your credit card for a while.
6.- Avoid large house payments or rent
Commit yourself for what you can only afford, and you should increase paying your mortgage as your income increases. It is better for you to consider refinancing your home if the payments are unmanageable
7.- Avoid guaranteeing or cosigning a loan for someone
8.- Avoid obligations to people who have unhealthy spending habits
Incurring a joint tax bill or debt can lead to you solely be liable if the other partner defaults. In most cases, these kinds of liabilities usually outlast the relationship.
9.- Don't make high-risk investments
Investments in penny stocks, speculative real estate, and junk bonds are the kind of risk you could try to avoid. Invest conservatively by opting for money market fund, certificates of deposit, and government bonds.
10.- Get alternatives way to spending money
When someone proposes you meet for lunch, suggest meeting at a museum when it’s free, or you can go for a walk in the park. You can rent videos or borrow CDs and book instead of buying them. Instead of renting videos and purchasing CDs, borrow the items for free.