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Take charge of your financial life
By Adam | January 23, 2008
Hello-
I was reading some interesting articles today about personal finance and getting out of debt. Have you checked out getrichslowly.org?
I found it today and liked it. You should check it out. http://www.getrichslowly.org/blog/
The article I found was about taking charge of your finances. Here’s a couple of tips I found quite helpful and can help you keep your New Year’s Resolutions if you’re still on them…
Get out of debt. Are you struggling under a heavy debt load from credit cards or student loans? Make it a priority to unload some of this burden in 2008. If you have the mental discipline, you’ll save money by paying down your high-interest debt first. But if you’ve tried that method before and failed, consider using a debt snowball. Pay your debts starting with the smallest balance first.
Here’s how:
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Order your debts from lowest balance to highest balance.
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Designate a certain amount of money to pay toward debts each month.
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Pay the minimum payment on all debts except the one with the lowest balance.
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Throw every other penny at the debt with the lowest balance.
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When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-lowest balance.
The debt snowball can give you awesome psychological payoffs, keeping you motivated to stay in the game. It’s not mathematically ideal, but it worked for me (and for many others).
Getting out of debt is one of the top resolutions people make each year so that is why I chose that one as one of the top ideas.
Here was another good one:
You’ve heard this one before. Now you just have to put it into practice. When you get a raise, save some of it. Try and save most of it. Use a small percentage and have fun with it. Don’t spend it all on a new car or on a new plasma TV. Invest it or start an emergency fund. You’ll be thankful later down the road when you need it.
I know my emergency fund has saved my butt several times over the years.
You can read the rest of the tips below
-Adam
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8 ways to take charge of your finances
MSN Money - 9 minutes ago Suddenly I’d find myself without money to pay for a car repair, or facing an expensive medical bill. I financed emergencies with credit cards. … |
Tags: getout of debt, pay off debt, debt, spend less, save more
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