3 Smart Financial Decisions That Have Served Me Well
by Maurie Backman | Jan. 25, 2020
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
These choices have helped me keep my finances intact.
There are many decisions I've made in life that I'm not proud of -- like the choice to buy an ultra-cheap first car that practically blew up on me following a minor accident. Or the choice to run a marathon knowing full well that my existing knee problems would increase my risk of injury.
But when it comes to my finances, I've actually made some decent choices (not including the aforementioned first car fiasco), and I'm sharing them in the hopes that other people may be inspired to go a similar route. Here are four moves that have served me pretty well.
Image source: Getty Images
1. Not buying a home at the top of my price range
Back when I was looking to buy a home, I set a budget so I knew what listings I could afford. And during my search, I was tempted on more than one occasion to buy a home at the very top of my price range. Technically, I could swing the associated mortgage payments and costs. But rather than go that route, I chose a home whose purchase price was a good $50,000 lower than my maximum spend. By opting for a less expensive home, I had more wiggle room to tackle renovations shortly after moving in, and I also encountered a lot less stress when my property taxes went up -- a lot -- within a couple of years and I wasn't able to get them lowered.
2. Not racking up credit card debt
I've been using credit cards since my college days, and I've even, on occasion, maxed one out. But I'm happy to say that I've never carried an actual credit card balance that accrued interest -- I've always paid my bills in full when they came due. Doing so has saved me a world of money, and it's also helped me maintain a good credit score. In fact, when I applied for my mortgage, I was able to qualify for some of the best rates because my score was in such decent shape.
3. Building an emergency fund
From the moment I got my first job in high school, a little voice in my head urged me to stick a chunk of my earnings into the bank. And throughout my adult life, I've made sure to have emergency savings. In my case, that's enough money to cover about six months of living expenses, though some people can get away with more like three months' worth. That emergency fund has, in turn, come in extremely handy for things like car repairs and house-related issues. It's also saved me from racking up debt and wasting money on interest charges.
Let's be clear: I've made my share of financial mistakes in life. (Did I mention my first disaster of a car?) But I'm really happy I made the above moves, even if it wasn't always easy.
Top credit card wipes out interest until late 2022
If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. It’ll allow you to pay 0% interest on both balance transfers and new purchases until late 2022, and you’ll pay no annual fee. Read The Ascent's full review for free and apply in just 2 minutes.
About the Author
Maurie Backman is a personal finance writer who covers everything from savings to retirement to healthcare. Her articles have appeared broadly on major outlets such as CNBC, MSN, and Yahoo.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
