Category — Financial Issues
With the promise (or curse) of tax day up ahead, finances can be weighing heavily on our minds. When finances start to become a distraction to work, family time and your health and wellness it’s time to sort it all out. Follow these tips to help find your financial freedom.
- Pay down your debt – Set a goal of zero debt excluding your home mortgage. Generally you should work on paying the debt that carries the highest percentage of interest first – paying a smaller bill at lower interest may feel good as you pay it off sooner but you need to weigh that with the fact that it is costing you money in interest. When deciding how much you can afford to pay on your debt, be careful to budget enough each month to allow for expenses. Paying extra on your credit cards each month only to run short and end up racking up more charges isn’t getting you any further ahead. Learning to decipher between “wants” and “needs” will also help those bills from accumulating. Calculate your debt to income ratio here – MSN Debt to Income Calculator.
- Emergency Fund – Based on your risk aim to accumulate six to nine months worth of expenses. This money would be used to cover daily living expenses if disability, illness or unemployment leaves you with an unexpected loss of your income. This important step can eliminate or decrease the need to rack up new debt. [Read more →]
February 12, 2008 No Comments