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Tuesday, September 09, 2008

Tips on Tuesday: Financial Seminar

Our church is hosting a four week financial seminar. No sales pitch, just great information. The first week was FANTASTIC with the information being geared to help you see where you are at and where you want to go. We had people from all walks of life and vastly different financial circumstances.

From the seminar, I wanted to share Pastor Dale's list of things to do to get out of debt. He was very clear that these steps need to be done in chronological order and that it is a long term process. This isn't an overnight fix.

Short Term & Long Term Financial Goals:
  1. Establish a savings account of $1000 so it is available and uncommitted. Then you have an emergency fund if you need it. (If you have to dip into it for car repair, etc.---replace the money as fast as possible to keep the account at $1000.)

  2. Make a will. (Married couples can't have a joint will. Each spouse needs a will that mirrors the other.)

  3. Establish another savings account with one month of take home pay in it. (Not gross salary.)

  4. Pay off all your credit cards.

  5. Increase 2nd savings account from 1 month to 3 months of take home pay.

  6. Pay off all consumer debt (other loans, lines of credits)

  7. a) Begin saving for major purchases (auto, home, etc.) Only borrow on items that appreciate in value. b) Begin saving for retirement. c) Begin saving for children's education.

  8. Update your will again.

  9. Purchase an affordable home. **Watch the interest rate and make sure it is fixed. **Be sure you understand your property tax--especially if building a home.

  10. Begin to prepay your home mortgage.

  11. Pay mortgage off.

  12. Have your children's education fully funded.

  13. Have your retirement fully funded.

One other hint was to get overdraft protection on your accounts just in case something would even happen and a check would be short.

1 comment:

Anonymous said...

Great information. Thanks for sharing. My only comment is that if your company matches your 401K, you should try moving saving for retirement up and at least put in the percentage that your company matches into your 401K or your just essentially giving money away.

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