I am going to give some advice, something I rarely do. I am sure you have heard it before but this is one of the most important things you can do. Avoid debt. If you are in debt, pay it off as soon as possible, even if you have to scrimp on everything to do so.
Debt is crippling. When you start paying interest on money you owe, you are immediately losing. Even at low interest rates, when you carry a debt for years, you are costing yourself a lot of money. Of course, some things almost always have to be paid off over time. Few of us can pay cash for a car or house. If you are that fortunate, consider yourself blessed and take advantage of your good fortune. If you are like most of us, use your head. Do not buy that really cool sports car when a nice, sturdy sedan will suffice and do not buy more home than you need. Very few need a huge house on a large lot. Buy what you can afford and be happy, very happy, when you pay it off. Get the best deal you can and make sure, even if you have to eat Ramen Noodles a few nights, that you never miss a payment. Do not even be late on payments, penalties are unnecessary expenses. Whenever possible, make extra payments and get that debt off your back as soon as you can.
Once you have paid off a car, drive it until it just cannot be repaired anymore. Take good care of it, keep the body and interior in good repair and do not let needed engine work go ignored. Yes, all that costs but not nearly as much as a new car.
If you have paid off a house, rejoice and stay there as long as you can. Tired of the way it looks? Home remodeling is a lot cheaper than buying a new one.
As far as other forms of credit, avoid them. I do think it is good to keep 1 credit card for use in absolute emergencies. Your 12-year-old's desire to get a new, $100 pair of sneakers is not an emergency, nor is you desire to go to that football game next weekend. Also, credit cards are good to use when traveling. No one in their right mind wants to carry a few $1000 in cash around but, and this is especially important, pay off the entire balance when the next bill comes due, and never, ever be late with a credit card payment. I used to work selling credit card offers and they sounded great. No interest for a year is great, but, if you are late for one payment, the full interest late, along with late fees kick in and you suddenly are way behind. Also, when that interest free period ends, if you have a balance, you will immediately start paying those big interest rates and it becomes very hard to catch up. That is how credit card companies can make those great offers. They count on people falling behind because then they start making their money. Do not get caught in that game. If you must use your card, make sure you pay off the entire balance when due, even if it means skipping a Friday night dinner out or two.
About the only debt I can think of that you may have trouble avoiding is hospital and doctor debt. If you develop a serious illness, you have no options and most insurance will not cover everything, unless you pay a great deal for that policy. If you run up deep medical debts, work out a payment schedule that you can afford. Most hospitals and doctors are actually pretty good about working with you.
Again, I know this is all old news to you, but this is the best advice I know, Stay out of debt and if you cannot, pay off all of your debts as soon as possible. Being debt free is liberating. You will be absolutely amazed at how much stress you shed when you find yourself free of debt.
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