5 Things to do When You Pay off a Debt

First off, congratulations; it is a huge accomplishment to pay off a debt.  You feel the weight off of your shoulders and get rid of the feeling that you are continuing to sink deeper into debt.  Now that you have tackled this obstacle it is time to stay disciplined and continue on the path of financial freedom away from debt.  Once your debt is gone there are a few next steps to stay ahead of the game.

Check Your Credit Report & Score

Getting out of debt is a glorious feeling, it’s easy to get caught up in the moment and start spending that discretionary income again. To quash that urge you should first check your credit score to see how much it improved since paying off that debt. If you are unfamiliar with score, you can see what a good score is here http://aaacreditguide.com/credit-scores/what-is-a-good-credit-score/.

Figure Next Financial Steps

The next move is to figure out what your next financial move is.  Is there more you need to pay off, do you need to start setting up a savings account for the extra money, or maybe you need to create a budget to curb spending going forward in order to not repeat previous mistakes.  Whatever you do, make sure saving is high on the list.

Move onto the Next One

If one debt is down, it is time to move onto the next until they are all paid off.  Try the next smallest balance to feel even more accomplishment, or try and tackle the debt with the largest interest rate so you can apply more towards principle and get rid of it.

Stash More Away for Rainy Day

Experts say that you should have between three and six months of living expenses put away in case of a job loss or a large unexpected repair such as your car or home appliance, so if you have not started to save, now is the time.

Save for Next Purchase

The trick to staying out of debt is to not continue to make unnecessary purchases, and to only spend what you can afford, so if there is an upcoming purchase that you want to make, now is the time to start saving, whether it is for a new car, home down payment, or even planning the next family vacation.


Creating a Diversified Portfolio

I see advertisements and news articles galore on robo-advisors popping up everywhere I look. Don’t get me wrong, I find these services to be much more cost efficient than the traditional financial advisors. Companies like Edward Jones still charge excessive investment and administrative fees so that they can cover their expensive overhead. Brick and mortar investment advisories have rent, utilities, and employees that they need to pay, and after all of that they still want to turn a decent profit. You, as the investor, are paying for that overhead. We as a society need to understand that creating a diversified portfolio with a risk tolerance comparable to your years until retirement, and that nothing more, or less, is needed.

First and foremost, a general rule of thumb is to limit your bond investing to your age less 10 points. So if you are 30 years of age, you should be 20% invested in bonds. The remainder of your portfolio should fall into equities! Now I am not saying you need to invest 80% into Apple stock, rather, you should diversify amongst a basket of equities.

Low cost mutual and index funds are usually the way to invest. Notice I said “low cost”. Index funds cover a wide variety of industries and stocks, some domestic, some international, and hopefully some that pay a healthy dividend as well. You want a high performing fund that takes as little off the top as possible. I generally try and stay within 0.5% for fund fees. Remember, those advisors charge you a fee on top of fees these individual funds charged, so chances are these are fees that you are already incurring that you may not even be aware of.

If you are looking for other investment options to further diversify your portfolio there are many. Binary options investing can a reliable fixed return investment to add to your burgeoning portfolio. Companies like Banc De Binary have a plethora of online resources for you to review and read up on. Consider that commodities are making a hot comeback as well. I know these types of investments are typically deemed to be stodgy and stale, but gold and silver are limited in quantity, and the limitation of a resource almost always makes it more valuable. We are even seeing silver rising in value at a faster rate than gold for the first time in a long awhile.

Forex trading is not as easy as it seems. There are many ups and downs in the Forex market and every trader has to be really smart in understanding these moves. Using sound strategies and the use of good tools for trading online are the two things which really help every trader to achieve success in the long run. Forex currency converter is one of the best Forex tools which is considered as the best friend of a disciplined Forex trader.

What is Forex currency converter?

A Forex currency converter is an online application or software which helps in converting one currency value into the equivalent value of another currency. For example you want to know how much will be the value of 20 US dollars in terms of Japanese Yen at the current market rate. The result can be obtained by using a Forex currency converter and you can similarly know the values of other currencies in terms of other currencies.

A Forex converter cab be of two types – one is downloadable software and other is web application. Both use feeds from the real time exchange rate and you get the updated market exchange rates for effective trading online experience. But the frequency of update is different in different Forex converters and some update it hourly while some do it daily. Most of the Forex currency converters show the currency values up to 4 decimal places.

How Forex converter is useful for trading online?

A Forex currency converter is the best friend of a Forex trader as it helps him know about the latest currency exchange rates when trading online with XTrade. Knowing the current market rates is very important for an active Forex trader and based on the present rates he can take a trade decision.

A Forex trader who is constantly traveling to different parts of the world can rely on an online Forex converter which can show the real currency prices and conversions whenever he needs it.  A live Forex currency converter can be of great help to a day trader who needs a converter constantly in order to make trades instantly when he feels the need to open a trade. A Forex trader cannot think of doing the Forex trading online business if there is no such currency converter assisting in knowing the currency rates as well as planning the strategy on the basis of that.

With the use of a currency converter a trader gets the overview of the current market trend and can decide his strategy further on the basis of the going trend of the currency market. Not only the traders but currency converter is used by travelers as well as businessmen who make a business in countries abroad.

Avoid Borrowing Money from Friends and Family

We all get into a bind from time to time, for one reason or another, it happens to the best of us.  How you get through it and come out on the other side not only matters to your financial future, but also the relationships around you.  Whether it is a large sum of money that you could not get a personal loan for, maybe family or friends are offering a lower interest rate (perhaps even no interest) that would save you plenty of money on interest that you could not get otherwise, or need a few dollars short term to get by until the next paycheck, avoid asking family or friends for the money, you will thank yourself in the long run.

When the conversation is initiated it is awkward for both parties.  First the person coming to ask for money has to disclose finances, which whether you are in good or bad financial shape is not smart to discuss with those around you, as it usually can make someone jealous or envious.  Second, the person in the position to lend money may feel obligated to help, so it puts them in a difficult position to say no and feel weird around them going forward, or say yes and begin the process of having this person be indebted to them.

If a sum of money is agreed upon it runs the odds of being open ended, as typically money lent to family and friends tend to have loose terms and have no interest, putting a borrower and lender in a state of where the lender is always nervous wondering when the money will be paid, and the borrower not knowing when to pay it back.  After a period it could come across that the loan is not a priority, making the lender then hove the difficult talk to ask for the money back, and therefore suddenly get-togethers are getting awkward for both parties.  Neither will want to talk about the money that was lent, or anything that costs money for that matter.

When you lend money to family and friends you are sort of enabling them instead of helping them working through their problems, even getting to the point where more money could be asked for.  Not only is the money not collecting interest for the lender, but it also reduces their money if ever needed for emergency.  If you decide that it is ok to lend money, make sure there are terms are agreed upon, but must also be aware that there is a possibility that the money could never be returned, therefore jeopardizing the relationship.




 Page 1 of 66  1  2  3  4  5 » ...  Last » 

Social Widgets powered by AB-WebLog.com.