Build Net Worth – Avoid Debt Reduce Debt
The major deal here is staying debt free at least for a while. In our society, that can be difficult. Chances are you are already saddled with student loans, most college graduates are. Strive to pay off student loans, and work to keep other debt at an absolute minimum. Excessive debt leads to high-interest payments, which decreases your ability to save and invest for the future.
You will likely, want to document all of your current bills and organize them so that you know exactly how much you owe. On the other side of the table – you will need to determine how much you have in assets. Liquid and non-liquid assets. Determine if it makes sense to keep or get rid of some of those assets – including the non-liquid assets.
Avoid credit card debt if at all possible; pay off your credit card debt as soon as you are able, and, once paid off, keep it at a zero balance. You should also consult your budget before taking on debt like car loans and mortgages, and ensure that the monthly payments are not going to starkly limit your flexibility to meet all your monthly obligations or spend money on things you enjoy.
This content so far is just to get you thinking. If you’re liking the idea of being debt free and building your net worth over time or even on a quicker pace – Find out more with MyMoneyTruck.com.