Key Personal Finance Tips

MoneyMany people will admit that they know less than they probably should about personal finance.  Even if people do not have the time to presently become a finance expert, there are three common personal finance areas that people should focus on learning more about.

First, investing in your employer’s company stock has benefits and drawbacks that should be weighed carefully before taking action.  Employees may be eligible for discounts on stock prices in addition to having a better knowledge of the company’s performance than an outside investor.  However, if your company faces some sort of financial turmoil, you as an employee run the risk of facing unemployment combined with a decreased value of the stock you own.  Still, if investing in the company you work for appeals to you, experts suggest not investing more than 10 percent of your overall portfolio with the company to minimize risk.

A second area of personal finance that may need attention in the near future is open lines of home equity credit.  These loans were popular from 2004 to 2007, but the time to pay back is fast approaching as the 10-year breaks on paying back principals are expiring.  You should review the terms of your equity line and, if you anticipate having any issues making the impending higher payments, talk to your lender about options like refinancing the loan.

Finally, for those who are looking to revamp their personal finance agendas, it may be time to dispel the myths surrounding the glorified platinum credit card.  While platinum cards do offer various perks to cardholders, these perks will not be beneficial to everyone.  Customers already in debt should avoid platinum credit cards all together.  However, if you are debt free and travel often or make larger purchases regularly, a platinum credit card may be a nice option after all as these cards often offer airline perks and longer coverage on large purchases.

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