How to Make Good Financial Decisions

Making good financial decisions can be hard. Here are a couple of ways to help you make good decisions.

Difficulty: Moderate

Instructions

1. Don't impulse buy.
   If it is something you see and you really want it, think it through. Depending on the size of the purchase, give yourself enough time to think about if this is something you will really use or need.

2. Invest.
   If you do not know much about the stock market, I suggest you learn or have a stock broker do it for you. The stock market is never a guarantee, so I would suggest not spending money you cannot afford to lose.

3. Banking.
   Have your own savings account. This way, not only will your money be drawing interest, but it will also be in a secure place. This can also help you not make an impulse buy. If you cannot get to your money immediately, it will give you time to think about it.

4. Shop around.
   Even if you have found the perfect item, try looking in other stores for it as well. You may be able to find the exact item you are looking at for cheaper.

5. Have a small nest egg.
   No one knows what the future holds, so it is nice to have a little something to fall back on. In case you suffer an injury or you have an added expense to pay for, you will be ready.

[Sush56]

on 9/3/2008 These are great tips, if you want to save some money.

[klnygaard]

on 9/3/2008 good info--thanks for tips

[oneloved]

on 9/2/2008 Good tips! I'd say DON'T USE CREDIT CARDS! Borrowing money you don't have just because you don't want to wait is just asking for trouble!

[momofour]

on 9/2/2008 Great tips! I would add avoiding credit card purchases. Better to put money aside to save for an item you want and pay for it with cash than paying with credit. Many times, you might decide you don't want it after all, and not only have you not wasted your money but you have extra to stick to the side for a rainy day.