Search Results for: blog saving money versus paying off debt

5 Steps to Getting Your Car Paid Off Early

Paying off your car loan early will save you hundreds of dollars in interest charges, eliminate a monthly expense, and increase your credit score as your rate of debt to income goes down. Plus, you’ll get a real sense of accomplishment knowing that your car is completely yours, free and clear. 1. First do your homework Review your loan paperwork before you start. Most car loans are simple interest loans. That is, the interest accrues during the life of the loan, so paying it off early will save you a lot of money. In a precomputed interest loan, on the … Continue reading →

Linking Financial and Physical Health

A recent poll from the Associated Press and AOL Health took a look at the link between financial health (or lack thereof) and physical health. The poll was conducted in March and April of 2008 with more than one thousand adults from forty-eight states. The last time a poll like this was conducted was 2004. Comparing the two polls found that debt-related stress is fourteen percent higher now than it was four years ago. A research psychologist on the study estimated that between ten and sixteen million people are living in debt and suffering physically from the stress. Respondents in … Continue reading →

How Much Car Can You Afford?

One question that you may be asking yourself is how much car can you really afford? The bank is certainly willing to lend you the money for a car loan, but should you take what their estimate of what you will be able to pay over what you really can afford to pay? It is important to realize that banks will often lend you more than would be comfortable in most budgets. It is a balancing act when it comes to determining how much car you can truly afford. Ideally you should pay cash for your cars. You can start … Continue reading →

Number Crunching: A College Fund

My daughter is three. We are going to open her a 529 savings college plan with a $1,000 initial deposit into it. We plan on putting $500.00 per year in to the plan for the next fifteen years. That is only $42.00 per month. (ok, it is really $41.66 per month). We can handle that. We’ll plan and budget for $500.00 per year, probably for a summer deposit, so it doesn’t come over the expensive December month. Since this is a 529 plan, the money will not be taxed. So, how much will she have for college? Can you figure … Continue reading →

Saving Money Versus Paying Off Debt

Is it wiser to pay off your debt aggressively or should you begin to put money in savings? How do you decide which is best for your situation? This answer is a tricky one and one that you ultimately will need to decide. The first step is to make sure that you are no longer living beyond your means. It does not make a lot of sense to be putting five hundred dollars a month into savings while you are charging that much or more a month on your credit card. If you have your spending habits under control, then … Continue reading →