By Candice Davie
There are tons of financial rules and tips that experts recommended over the years that many of us have lived by. While these recommended strategies may have worked well in the past, there are some new strategies that may prove to be much more effective. Of course, everyone’s situation is different and you have to find what works for you, but as they say:
“Old ways won’t open new doors.”
Take a look at some old money rules that you might need to let go this year.
Old rule #1: Aim for savings of 3 months of household expenses.
New rule: Aim for at least 6 months of savings instead.
The pandemic taught us many things. One thing in particular, is that when it comes to saving money, more is always better. While three months of household expenses in savings is great, aiming for at least six months of savings will provide even more of an emergency cushion.
Old rule #2: Always pay with cash.
New rule: When used wisely, credit cards can yield benefits such as cash back and fraud protection.
While there are many cons brought to our attention when it comes to credit card usage, with the right card mixed with strategic spending, credit cards can provide cash back and many other benefits.
Old rule #3: Cash or credit are your only payment options.
New rule: When used responsibly, ‘buy now, pay later’ options allow you to break up the cost interest-free.
‘Buy now, pay later’ can be a better choice than using credit cards. With no interest, you could save some money compared to using a credit card. Also, being able to spread out the payments can be a plus. If this will be a temptation for you to purchase many more things than you know you can afford, however, stay clear!
This is not for you to rid of all of the financial strategies and tools you’ve been using, just a heads up that there are some new ones that might prove better at helping you reach your money goals.
*Featured image by Jimmy Dean on Unsplash