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Tag Archives: paying off debt

How To Stay Motivated When Paying Off Debt

stay motivated when paying off debt

Hopefully those of you who have resolved to make this a debt payoff year are still holding fast to your resolutions. As I’ve started to notice the crowed of new gym users waning in recent days, I can’t help but think others might be struggling with ambitions goals set for the new year. From experience, I know it’s hard to stay motivated when paying off debt. Anyone can to anything for a short period of time, but how about when fixing a problem takes months or even years? Have a Reason for Paying Off Debt It’s important to have a reason for paying off debt. Of course less debt means greater financial stability, but having a more personal reason is a better way to stay motivated. Write down what you hope to achieve once you’re debt free. I want to pay off debt: so my kids don’t have to support me in retirement. so I can spend more time doing what I love instead of working. so I can handle whatever life throws at me without wondering how I’ll pay the bills. so I can take my parents on a trip they’ve always dreamed about. Your reason might be aspirational ...

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Being at Peace With Debt

paying off debt without stress

With of Americans carrying almost 12 trillion dollars of debt, it seems inevitable that we’ll all owe someone money at some point. I was reading an article about student loans recently and it listed a concept that many in the personal finance community don’t understand or support; coming to peace with debt. At first glance, I was ready to write the whole article off as one of those advice pieces that are about as helpful as payday loans or 18 months with no interest until I read further and decided that maybe being at peace with debt isn’t such a bad idea after all. Debt Can Control Your Life It’s very easy to let debt control your life. One example is after overextending yourself to the point where minimum payments are forcing you to live paycheck to paycheck. In this situation, the end of the money happens before the end of the month. You’re forced to dig further into debt keep the household running. The other example is when you have a sizable debt, something like a mortgage or student loan, and you can’t get over the fact that you’ll owe money for years. Even though these are considered “good ...

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How To Pay For Emergencies Without Going Into Debt

having an emergency fund

    It certainly feels like the economy is looking up for many Americans. While there are still workers in certain industries that struggle to find good paying jobs, investments are up, self employment opportunities are plentiful, and the world looks a bit rosier than it did a few years ago. At least that’s what I thought until I saw this study from the federal reserve showing that half of Americans would struggle if faced with a $400 emergency expense! If you fall into this category, it’s important to figure out how to pay for emergencies without going into debt. So Many People Can’t Afford Emergencies I’m certainly not one to throw stones. Back in the day, we whipped out a credit card for most expenses, emergency or not, expecting that we’d make our payment at the end of the month just like everyone else. I had hoped that  the recession taught most of us that jobs can disappear at any time and an emergency fund can be the difference between inconvenience and financial ruin, but I think maybe I was wrong. While this survey did have some positives, with the majority of respondents saying they are doing OK or ...

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Is It Better To Invest or Be Debt Free?

paying off debt quickly

A big reason many people put off investing is debt. It doesn’t really make sense to ramp up investments while paying 21 percent interest to credit card companies, but what about low interest debt? Obviously the answer depends on many variables including income, how much debt you owe, and if you are investing for short or long term goals. We currently have lots of mortgage debt, mostly from investment properties, that we’d like to see paid off quickly. However, we don’t want to miss out on investment gains and compound interest either. Is is better to invest or be debt free? Completely Debt Free In Six Years! Assuming we maintain our current level of income and expenses, if we were to stop investing in our 401k’s, IRA’s, and taxable brokerage accounts and put all the money toward paying down mortgage debt, our primary home could be paid off in about three years. The commercial building we own will be paid off in a little over four years. At that point, we could throw everything toward the other rental house and four plex, paying those off in another two or three years. If we went for that strategy, we would own ...

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How You Can Love Your Job To Age 70 And Beyond

people still working after the age of 70

Recently I’ve run across a slew of people who are over 70 years old and still work full time. To me that sounds worse than Chinese water torture, but by being nosy asking questions, I’ve confirmed what I suspected was true. Working because you want to is much more rewarding than working because you have to. I think work satisfaction depends on a number of factors, but from what I’ve found, this is how you can love your job to age 70 and beyond. Sense of Purpose When I ask people over 70 why they are still working, one theme rang true for the ones who actually love their jobs. They held positions that gave them a sense of purpose. Some were heads of their division and headed up projects that no one else knew how to do. A couple of others were in health care. If a job provides a valuable service or makes progress for something other than the company bottom line, that’s a huge bonus on the job satisfaction scale. Flexible Schedule or Lots of Time Off All the older individuals who loved their jobs had the ability to adjust their schedules or work from home. They ...

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