Some people manage to buy their own house and open their own business by the age of 30. Others, at the same age, are still trying to figure out how to earn decent money. There are certain obvious facts that can lead to prosperity, while others can lead to financial disaster.
Incredible Facts chose the most effective tips for you. They can be very useful when you are still young!
1. Children are expensive.
There is a very tricky stereotype that we should have children by the age of 20, 25, or 30. But speaking seriously, raising children is quite costly. That is why it is much better to have them when you are completely ready, and that includes your finances. So don’t hurry, and prepare a “financial cushion” with your partner before your family gets bigger. Through these means, you’ll be enjoying wonderful moments instead of thinking of money every single minute.
2. It’s not embarrassing to ask for a promotion.
If you’ve worked in the same position for more than 3 years, the time has come to make your way up the career ladder. Asking for a promotion is the right step to improve your financial situation. That is why you shouldn’t be shy about asking for a promotion and salary increase. At the same time, don’t be afraid of bigger responsibilities and an increased workload. If you are refused a promotion several times, it’s time to start thinking of changing your job or improving your professional skills.
3. It’s more profitable to rent a house than buy it.
We like to think that investing in real estate is a great decision. But real estate is getting cheaper while you have to pay much more for a mortgage. So is it actually profitable?
Here is an illustrative example for you. Let’s suppose that a house costs $100,000. Its rental is around $550 per month, making a yearly rental of $6,600.
Let’s subtract that $6,600 from the general cost of the house. We would put the remaining amount into a savings account with 7% interest. Thus, our yearly income with it will be $6,752, which will be more than enough to pay for another year of rental.
If you invest your money more wisely, in funding, for example, it will bring you $9,764 at the end of the year. So you’ll actually get a reasonable profit.
Apart from that, you don’t need to spend money on maintenance, taxes, and furniture. That’s why, before making a decision about whether to rent or to buy, count all the expenses and choose a more profitable option.