What are your Financial goals this year? It does vary from person to person, family to family but we can all make a difference in our spending without harsh sacrifices. You may also like Creative Ways to Make Extra Cash article as well.
Many people wonder, should I pay down my credit card debt, start a savings account plan, buy Certificates of Deposits, pay down house, etc..it is hard to know where to begin. Everyone has their own opinions on how to save money without making more money.
1. Common practices are paying down Credit Card Debt. Now how?
If you have more then one credit card, pay the most on the highest interest rate card. Yes, I know you may totally be tempted to pay more on both, but don’t. Why? Because you HAVE to get that high rate one paid down as soon as possible. This will save you the most money on interest. Plus, after you pay that card off you will feel accomplished.
Oh, and don’t continue to use Credit Cards. You are officially done with credit. Why, because you want out of the cycle of debt.
3. Do you have a Car Loan? (no credit card debt?)
You may or may not want to pay extra to this purchase. Depends on the interest of the loan. If it is really low, then you may want to keep on paying the reg. monthly payment.
4. Do you have Home loan?
Now, this is tricky. I am not an expert by any means. I don’t faithfully pay down on my home loan personally. But I probably should. Have you ever looked at the interest to principle payment? It is a bit disturbing. I do have a Chase Home Loan and with automatic payment Chase gives me 1% back. Not much, but better then nothing. They credited my principle a few months ago, it was a nice surprise!
My opinion on this would be yes pay more if you can, especially if you plan on not moving. If you plan on moving, then I would say just save your cash for a nice down payment on the next home purchase.
In conclusion, don’t get into debt to begin with. However, sometimes that is unavoidable. Start saving money where you can (Using Coupons for things you normally buy) Track your spending, see where you spend your money the most.
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I like to think of myself frugal, but not cheap. Which means I do like good quality items, I just look for way to get items at a great deal! I believe couponing is for anyone and everyone, it is an easy way to save money on things you already use on a regular basis. In 2009, I was picked by Savings.com to be a deal pro. It was such an honor, and I met some great frugal bloggers. I was chosen again for the second year in a row for Savings.com Deal Pro for 2010! During this past year I attend the Disney Moms Social Media event 2010. So far 2010 has been a great year. {