How To Use Your Hard-Earned Money To Quickly Reach Your Goals
So you have a few dollars to save, payoff debts, or invest for the future. What do you do with the money, so you can reach your goals in the quickest and easiest way possible – and not waste time or money on poor decisions?
Step One: Your Emergency Fund
You have received an inheritance of $50,000. What do you do with the money? Yes, you could buy that big screen TV and sound system, and take a major vacation – but what if you wanted to make huge progress on your goals, and not let the money waste away, bit by bit?
You have $500 left after your monthly bills and other fixed expenses are paid, and you set aside money for gas, food, clothing, and other necessary expenses. You could spend this money on little luxuries, pay extra on your mortgage, or save for retirement. How do you make the decision?
The first priority should be setting aside money in your Emergency Fund. Yes, even before you pay off your credit card debt (unless you are in default or delinquent on your bills – then first pay them enough to bring them up to date).
Regardless of how much credit...