2010 is a new year with no mistakes in it. Let’s make sure we start out the year right. With all of the financial turmoil and being in the Great Recession, let’s make sure it doesn’t touch us.
- Make Debt Zero
Get rid of your debt, except your first mortgage (but make sure it’s traded in for a 15-year or 30-year fixed rate). Wipe away your credit card loans, auto loans, and student loans. You may not be able to do it right away, but estimate how much you can send in per month and stick with it.
- Create an Emergency Fund
If you haven’t created an emergency fund, start one today. It should be the equivalent of 6 month’s of expenses, including mortgage payments, utilities, food, and expenses.
- Save for Retirement
Always save for retirement. If an event happens that erases the emergency fund, you will have options if you have extra funds. With Social Security running out of money, the only thing you can depend upon is yourself. You are your most valuable asset. Stick an extra $50 in a fund, and at the end of the year, you have $600. If you invest $500, you will have $6,000. Multiply that by the number of working years you have. It’s amazing how fast it can grow when you pay yourself first. With that, you can have your own security.
On that note, Happy Holidays and Happy New Year! Best wishes to you.
Tags: debt, emergency fund, future, Great Recession, retirement, savings, zero
