4 Ways to Rebuild Your Wealth
After one of the worse recessions and financial meltdowns since the Great Depression, most of us are scratching our heads at how we can react to the mess that our portfolios and financial well being stands in. Although it may seem like all hope is lost in terms of meeting your retirement goals, it may not be. Here are 4 things you can do in order to rebuild some of the wealth you may have lost in the last 6-18 months.
#1 Refinance your home
By Refinancing your home you can save big time. For instance if you have a $300k mortgage that is at 6%, and refinance to 5%, you would save over $200 per month on your payment. This will amount to close to $40,000 over the life of your loan.
#2 Raise your Credit Score
Simply lower your ratio of credit card debt to total credit available. To do this, pay off as much of your balance as possible, and try to get a credit line increase if you can. This will in the long run raise your credit score quite a bit.
#3 Watch Less TV
Although you may not think TV has a connection to your spending habits, it certainly does. A recent study showed that for every additional weekly hour of TV you watch, you will spend an extra $200 that year. This is because we are influenced by what movie stars wear, drive, and do, as well as the TV commercials we watch.
#4 Re-evaluate your Insurance policies
Do you really need to have extremely low deductibles? How often have you had to put a claim in to your home owners insurance company? Most likely never or maybe once or twice. By Increasing your Deductible from $250 to $5000, you will lower your yearly premium by about $500.
Hopefully This short list has got you to start thinking about other ways to save those dollars. If you plan for another recession, which likely will come several more times in your lifetime, than you will be much better prepared to weather the financial storm.