Tips to Eliminating Debt and Investing Wisely

There is a lack of financial and investment education in our schools, among many things not taught. If you are a high school graduate who does not know much about finance, except how to write checks and balance your checkbook, investing or saving for retirement is probably something that does not give much thought to. So, here are some tips:
eliminate debt
for the best to eliminate debt, calculate and make a list of what you spend on each debt payment and who are with him. Make a commitment to the amount of permanently adding it to your budget. This part of the budget, I like to call a debt payment of money, can not change until you pay off all your debt for this method to work best.
If you have any money left over, get a raise or are rewarded a bonus, to add to this budget item. Do not go out and udarac.Najvažniji factor to eliminate debt is to not add to the coupe you do not really need. So you got into debt. If you can not pay for that money, you do not need it.
Look at the debt and put each into one of the following categories, listed in order of priority:. High-interest debt, non-tax deductible debt, tax debt write-offs, a mortgage
debt high interest credit cards are your high-interest loans. It should be paid first. Once this debt has been eliminated, take the money you were paying on credit card payments and add it to the next on the list to be eliminated.
The non-tax deductible debt lines of credit, bank or car loans. Since they are adding money to be used for credit cards to these payments, you will pay the debt of the much earlier.
Again, once you pay off your loan, take the money used on cards and loans and put towards your student loan or other tax deductible debt and erase this debt.
You are almost debt free. Your mortgage is the last debt you want to apply their debt to pay off the money. You are going to be making additional payments with all the money you free up by removing other debt. Not only the interest payments on the mortgage, any extra money you pay on your mortgage goes directly towards the principal. Suppose you have $ 100,000, 30 year mortgage with a 7.5% annual interest rate.
You have been making regular payments for 5 years. Now you have decided to send in an additional $ 250 every month. You have to reduce your mortgage for about 12 years. It was 12 years ago you own your home, not a bank. To learn when to pay your mortgage, you use a mortgage payment calculator found on off-line.Uzbuđenje over how many years will be debt free will give you motivation to stick to this plan.
Rule 10%
Do not start investing before you eliminate your debt. First and foremost is the importance of becoming debt free. This is an exception, one of the oldest rules of investing is to put aside 10% of each paycheck and investing. It is not going to really mess up your monthly budget and something anyone can start easily. Investing a percentage of their income, rather than a random amount, will motivate you to be consistent. If your pay changes, so that 10% of the amount you set aside. So, go ahead and start building a pension fund.
to be realistic
Common sense tells us packing a lunch instead of eating out is going to save you money. Going to the movies with my family every Friday night, apparently going to cost. Going to set O'Latte Cafe every morning instead of coffee brewing your home secure a budget leak. The question is why we do these things? We have become comfortable. It's automatic, or drive-thru, or my favorite: "I just had to." Has anyone come up to you and put a gun to your head and say, "You have to buy a newer car that thing you're driving around for two years a piece of junk." I highly doubt that happened.

Whether buying a car, whether new or used is not a property or ulaganja.Minuta drive from the lot in your new car depreciates the value automatically. Newer cars carry higher insurance rates. Buying new is just not a wise decision. Used cars depreciate too but felt a great loss with the new no. Underestimate the rate is much lower. Take the car out of your car, get regular oil changes and filters, to get set up and run it into the ground. After that, buy another used car and do the same thing. Try to s.

bonuses and raises
This is so frustrating to watch. People who get a raise or bonus to spend on something that can at best be described as dumb, drive me crazy. Invest your 2% raise by adding the amount to 10% have already invested. Get your bonus and put it in an emergency fund savings account. You lived with before the raise or bonus, why do you long to spend it now? Do not be stupid.
And now what?
Keep doing what you're doing better, if možete.Napast buy what you can afford it will never go away. Over time you will improve your ability to distinguish want from need, which will help you financially and prevent new debts. Keep up with new investment strategies, the study of how they work and what their applications and not be crazy.