Making Strides – Hitting the nail on the head one by one!!
Angela and Tony are focused and driven; they are preparing for retirement within the next five years and have a great desire to be debt free. Once they made a decision to eliminate ALL debt they began by funding their emergency fund to ensure that ALL emergencies would be paid out of the emergency fund; which would allow them to stay on course with their plan.
Recently Angela and Tony recalled a tip from a financial workshop that says if you are in debt and have a savings, use the money in savings to eliminate the debt. This power couple chose to use $28K of their own money from their 401K plan to pay off their debt and have a 4 year plan to replenish the savings. They have saved hundreds in interest by paying off the remaining debt in full. This plan works for Angela and Tony and they are on track to seeing their dreams and aspirations come to fruition; RETIRING DEBT FREE! Great Job Angela and Tony!!!
If you have a savings and you are struggling with debt month after month; fund an emergency fund of at least $500 to $1000; emergencies will occur; use the money in savings to help dig yourself out of debt. If there is a 401K plan or other retirement plans involved, consult a trusted tax accountant to explain the penalties that could be involved. Important tip: Set a timeline to pay yourself back monthly as if you were paying a bill.
When you fail to plan, you plan to fail! What are your thoughts? Leave a comment or email me at christineroebuck@livemylifedebtfree.