|
Mostly sound financial advice. I agree with the three points, but I will argue that #2 is a little skewed. While paying off the largest interest makes the most mathematical sense, many people get burned out quickly if their largest interest load is also their largest balance loan. By listing the debts smallest to largest, regardless of interest, paying the minimum on everything but the smallest and attacking that one with a vengeance you get to get some "quick wins" which give people a sense of accomplishment. When you see you're making progress you're more likely to stick with it. If you do a budget (which I would add as a 4th item on your list) and squeeze everything out of it that you can to put on paying down the debt the math works out to maybe a month or two extra between the way I suggested vs your way. The difference is people are more likely to stick to a plan if they see progress.
Overall good advice and it's neat to hear your take. I agree with a vast majority of what you said. Emergency fund, mandatory. Pay off debt, absolutely (no debt is good debt IMO). Invest for the long term, one day you'll want to quit working. I know I do. Thanks for the share.
|