This strategy is first because it seems like a good idea for almost every scenario. If you knew a big hurricane was coming your way, you would make every effort to get your boat out of the water and up to higher ground so it doesn’t get battered to pieces by the storm. Look at your finances the same way. Your investments are much like your boat sitting in calm water with a storm coming. Market returns are not currently significant compared to the high probability for substantial loss should they quickly tumble. Current market performance makes a strong case that its near-term upside potential is very limited while the potential for downside is extreme. I have removed my investments from direct market risk and urge you discuss the same with
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The rich rule over the poor, and the borrower is the servant to the lender. (Proverbs 22:7). The less debt you carry, the fewer people there are who can force you to do things with your money you may not want to do. Your house, your car, and any other asset you have pledged to a debt are not really yours to control while someone else has a financial interest in it. Everything is fine until you stop making the agreed payments and the item is repossessed or lost to foreclosure. Then the ultimate control if the item reverts to the lender and no matter how much or little you paid or the balance you owe, you risk losing it …show more content…
Which debt should be paid off first is a topic that is widely written about. Organizations like Crown Ministries, Financial Peace University, or your financial advisor can help you develop a strategy to get your debts resolved in the order that helps you the most. Since we are entering a period of significant financial uncertainty, some advisors are recommending an alternative strategy on a temporary basis until it is clear how things play out. Take the extra money you have allocated to accelerate the debt elimination and save it in cash until the direction of the market is clear. There are many variations on this strategy so it is important that you discuss the possibilities with those closest to you to help you can make a more informed
The rich rule over the poor, and the borrower is the servant to the lender. (Proverbs 22:7). The less debt you carry, the fewer people there are who can force you to do things with your money you may not want to do. Your house, your car, and any other asset you have pledged to a debt are not really yours to control while someone else has a financial interest in it. Everything is fine until you stop making the agreed payments and the item is repossessed or lost to foreclosure. Then the ultimate control if the item reverts to the lender and no matter how much or little you paid or the balance you owe, you risk losing it …show more content…
Which debt should be paid off first is a topic that is widely written about. Organizations like Crown Ministries, Financial Peace University, or your financial advisor can help you develop a strategy to get your debts resolved in the order that helps you the most. Since we are entering a period of significant financial uncertainty, some advisors are recommending an alternative strategy on a temporary basis until it is clear how things play out. Take the extra money you have allocated to accelerate the debt elimination and save it in cash until the direction of the market is clear. There are many variations on this strategy so it is important that you discuss the possibilities with those closest to you to help you can make a more informed