![]() ![]() This isn’t your Bitcoin (BTC) stash or shares of Microsoft stock, either. Create a CushionĪn emergency fund is critical to your strategy for getting rich. You’ll save more in the long run by paying off your higher interest-rate debt first, and only then crushing that house payment and any lingering student loans. ![]() While you might be tempted to accelerate paying off lower interest rate debt like student loans or your mortgage, think again. Once the debt with the highest rates is paid in full, you’ll roll what you were paying over to address the next highest interest rate debt and pay it off. With this strategy, you’ll put the maximum toward your highest interest rate debt and make the minimum payments on other debts. The debt avalanche method is one of the most popular ways to rapidly reduce interest costs and pay down high-interest debt quickly. Part of your budget must involve a plan to crush your bad debt and maintain responsible levels of good debt, like a mortgage. Not all debt is bad, but high-interest debt is downright terrible if your goal is to get rich. Then make a budget that lets you get to work. ![]()
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