If you're contemplating a debt free life but don't know where to begin, today's message may be helpful. The longer you wait, the more challenging the road is. This is because you lose something valuable – mile markers. The more of them there are between you and your financial independence goals, the more you can use time to your advantage.
Financial gurus will offer you a tool that explains mile markers as "multipliers." They teach their followers what's known as the rule of 72 (72 divided by your interest rate = number of years to double your investment). If you know the interest rate you're earning on your savings, use division to find out what mile marker you need to reach to double your savings. If your interest is 10%, you need to get to mile marker 7 (7.2 if you're a math whizz. Mile marker 7 might not mean too much because your money only doubles one time. Mile marker 14 doubles your money 2 times. The sooner you get on the road to saving money, the better because those last mile markers give you the most rewards.
There are road blocks on your journey you need to overcome in order to reach those critical mile markers necessary for your retirement years. The credit card offers may look inviting when you get them in the mail but they will hurt you if you find yourself paying interest to others. Get rid of these debts as fast you can. Make sacrifices. Pay cash for everything and only use reward cards when you develop enough debt discipline to pay zero interest as you navigate the road to financial freedom. Don't use a credit card unless you already have the cash in the bank to pay the bill when it comes next month.
A debt free life is possible. Start today. Have a great day.
No comments:
Post a Comment