3) AVOID DEBT

Check Your Credit Score

It is quite vital to have a good credit score, as it will be used to decide whether you are eligible get a loan or whether you are capable enough to pay a decent rate for your insurance plan. Protect your score by doing all the things that positively affect it: Pay your bills on time, don't use more than 10 to 30 percent of your available credit, don't apply for new cards unnecessarily, and don't cancel cards you're not using. The longer your open accounts are in good standing, the higher your score will be.

More: Tips for Managing Your Credit Cards

Use Your Emergency Cushion For Emergencies

The car requires a pricey repair. Your roof leaks. You need a costly medical test. These are emergencies situations which arise unexpectedly. You must always set aside some funds as an emergency saving and use it during the time of need. But surprisingly, most of the people with emergency cushions put these expenses on a credit card. At such times one should use the cushion instead of engaging into costly credit card debts.  Also remember, just because someone will lend it to you doesn't mean you should borrow it.

Also Read: 8 Homeless People Who Turned Filthy Rich