5. Paying off debt should be your first priority: People don’t realize how debts can cause disaster to them. Until they receive calls from credit card collection agencies, they keep on spending lavishly, neglecting their credit card bills. Debt management must be the first in your priority list when you step in to a plan for a financial free future. It is advisable to keep the habit of paying off your balances in full as they come due. That means paying off a chunk of your loans will immediately start saving you more money than you could if you continue to make those slow and steady monthly payments.

6. Start buying Insurance policies: Taking insurance policies can help you in many ways. There are different kinds of insurances that can be taken, for instance, life insurance policy, automobile insurance, and health insurance. When you take a life insurance you pay a small amount of money from your salary every quarter or every month, this money is saved by the insurance company and given back to you as a lump sum amount after a certain period. This might also cover your medical and family expenses sometimes. If your car is damaged in an accident and if you have taken an automobile insurance, all the expenses of damage will be taken care of by the insurance company; this way you save a lot of money.

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