{Financial Cents} A Quick Tip to Help You Pay Down Debt

Happy Hump Day Lovelies!  I wanted to give you a quick tip that I am using to help me pay down my credit card debt.  If you can, I would recommend you plan your payments on debt such as your mortgage and credit cards to bi-weekly payments.  Since there are two months out of the year that have five weeks, you end up with an extra month’s payment at the end of the year.  Those payments can be applied directly to the principal, which I recommend, or give you the opportunity to have these loans paid one month in advanced.

stylefinest.co (1).pngPROS

  • It helps you pay off debt faster
  • Reduces the amount of interest you have to pay back over the life of the loan

CONS

  • All lenders and credit card companies do not allow you to split your payments. If this is the case, you can create a money envelope for that extra payment you will have at the end of the year and use it to pay on top of your monthly minimum. It’s not a true “con” on the pros and cons list, but it does require an extra step and discipline to not spend that money

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Food For Thought: Finances & Job Security

Truth- There is nothing secure about job security. In fact, the emotional and physical stress that people experience over worry of losing a job and not being able to keep up a lifestyle or provide for a family is all too common. According to this article from the Wall Street Journal, “As many as two-thirds of people in the U.S. don’t have the recommended six months of expenses saved. The percentage of people with savings enough to cover at least three months shrank to 40 % in 2014, compared with 45%, a year earlier.”

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So when do you make a plan for the worst? Well, it’s better to have one in place before you need it…and I hope you will never need it. Having the recommended six months of expenses is just that- a recommendation. You have to figure out what amount works best for you and if you are like me, having a goal and a plan to get more than the recommended amount would put my mind at ease, since it can still take more than six months to secure a new place on your career path. The good news is, it is never too late to start protecting yourself financially.  Are you saving enough? If not, don’t undercut yourself by saving a little this week and skipping next week.  Get in the habit of paying yourself first!  You owe it to yourself and those you support to be financially secure in a world where job security isn’t secure.

Companies are downsizing, departments are being eliminated, and employers are trimming the fat. If you lost your job today, how long would you be able to survive financially?

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