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If you live by a few common sense rules, you can save yourself some headaches down the road when it comes to money. Smart spending will let you live within your means. Living out of your means has gotten a lot of people in money trouble. Let's look at a few ways were you can save a lot of money.
One of the biggest purchases that you will ever make is your home. A good rule of thumb is that you do not want to spend more than 28 to 32 percent of your gross income on a house payment per month. This also includes what the taxes and insurance will coast too.
I have a friend that installed yard fencing. A lot of times when they would go put up a fence in one of those Two hundred grand home allotments; there were a lot of homes that only had plastic furniture in them. I can guess that this was because they had such a large house payment that they could not go out and buy regular furniture. I have not hard that plastic furniture is in fashion either. But that is just a guess!
The second biggest purchase that you will make could be a vehicle. By no means go out and buy one brand new. The first year that you own a new car is when it takes the biggest depreciation. And that can be around one third of the total depreciation loss for someone buying a new vehicle every two years.
If you go out and find a good used two-year-old car, you are going to save a ton of money. Providing that you drive it for 5 to 8 years. The longer that you have it, the less the average cost per annum will be.
There are a lot of turned in vehicles that had a 2-year leas on them. When a car is leased, the person that took out the leas has to take very good care of the vehicle. If they do not, when it comes time to turn it in, they will get hit up with a lot of normal than use wear charges. This insures the mass majority of leas vehicles are taken care of.
Here are just two ways to help keep you from spending too much of your money. If you practice smart spending, you will be well on your way of having a good full life with a comfortable retirement.
