5. Build up an emergency cash fund. The fund should be equal to three months' income. This way you are more prepared if you are suddenly landed with a major expense.
6. Try not to use credit cards. Store cards and credit cards are convenient but they are also costly and an easy way of becoming in debt.
7. Never use debt on which you have to pay interest to buy products you consume. You are making the products far more expensive.
8. Keep your credit in good standing. It can save you thousands of dollars in the future, especially if you want to borrow money for a home or vehicle. The better your credit score is the lower interest rate you can expect to pay.
9. Avoid flying now, and paying later. It is more expensive and can be quite depressing to be paying for a holiday five years from now.
10. Borrow money wisely. Borrowing against a credit card is much more expensive than borrowing against a home loan. The difference can be more than 10 percentage points and much more money spent out of your pocket.
11. Before you go shopping for a home, get a pre-approval agreement on a mortgage bond. This will give the advantage of being able to shop around for a home while you are not pressured and the buyer will be more willing to sell knowing that the money is available.
12. When buying a home it is best to get a full structural survey before you enter any contractual agreement. Keep in mind a bank valuation of a property is not a guarantee that the building is structurally sound.
13. Always shop around and negotiate interest rates. You would be surprised how much a one percent difference can make. It can save you significantly.
14. Do not borrow to invest especially in volatile markets, such as share markets. One exception is property that you intend to hold for at least five years and in which you live.
15. Always pay the full amount owing on your credit card or you will be charged an enormous rate of interest from the date of purchase.
16. If you can afford to buy lunch out everyday, you can afford life insurance. Life insurance is essential for anyone who has dependents.
17. If you take out a life insurance policy, always state any health problems and answer all questions truthfully. You may have to pay more in premiums but if you lie, your policy could be cancelled and your dependents left with nothing.
18. If you are single with no dependents and plan on keeping it that way, you do not need life insurance against dying, but you do need disability insurance just in case you become ill or are injured in an accident.
19. Avoid cashing in an investment policy before its maturity date. You will receive less money than you have paid into the investment.
20. Don't try to hide if you are having trouble repaying debts. Speak to your creditors to find a way out of your problem.