FALL-ing Into Debt
How many times have you found yourself with all of your store charge cards all caught up? Your Victoria Secrets, Macys, REI, Dick's Sproting Goods, Zales, even Toys R Us has a charge card. Whatever's in your wallet, we all have been there. That calming feeling when everything is paid, Ahhh... But then fall arrives and you forgot to put money aside for the expensive holidays. You know, Thanksgiving, Christmas, and New Year's. Those magical holidays that seem to pop up out of nowhere.
What if I told you that for only $30 per week (less than that stop off at Starbucks every morning) you could have enough money to cover all three holidays and never need to touch those precious paid off cards again! That's right, if you start Jan 1st putting money in an envelope at home or a virtual wallet at your bank (sub-account), in 45 weeks you would have a staggering $1,350 set aside. That's $800-$1,000 dollars to cover Chistmas for the kids and a few extended family members that you "really care about". Then use the left over to cover meals during Thanksgiving and money to go out for a date night on New Year's eve.
The bottom line, is you can have the save fun you've always had duing the holidays without the dreaded debt that follows you around for half of the year because of lack of planning. Without the debt, you have increased your margin and allowed yourself room to breathe.
Now the tricky part, what to do with all that extra money? 1. We recommend starting off with a small $1,000 rainy day fund. 2. From there, continue paying off all of your consumer debts, cars and student loans included. 3. Next up, 3-6 months of your living expenses in a money market account (not a huge interest earner I know, but that's not why it's there) The money market account is an insurance policy against "life." The next 3 steps you will do at the same time. 4. Invest 15% of your household income into Roth IRAs and tax-favored retirement plans, 5. Begin college funding for the kiddos, and 6. pay off your home as quickly as possible. Then comes my favorite step of all, 7. Build wealth for Kingdom purposes and give a bunch of it away!
This year, don't FALL into debt, try FALL-ing into a financial plan that works.
Interested to see when you can be debt free? Check out this free debt snowball tool http://undebt.it/index.php