http://www.taxhelprelief.com/blog/2010/02/09/what-are-my-best-options-from-a-tax-and-debt-standpoint.html Tax Help for Those Who Need It! Fri, 12 Feb 2010 05:07:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.taxhelprelief.com/blog/2010/02/09/what-are-my-best-options-from-a-tax-and-debt-standpoint.html/comment-page-1/#comment-542 Jeanne R Wed, 10 Feb 2010 00:21:28 +0000 http://www.taxhelprelief.com/blog/2010/02/09/what-are-my-best-options-from-a-tax-and-debt-standpoint.html#comment-542 If it were me, I would: 1. contribute the absolute maximum that I could to the 401(k) 2. pay the credit card off as soon as possible (depends on your expenses, but as quickly as possible) 3. While you are paying down your credit card debt, start building an emergency fund of at least three months and preferably six months of expenses. It is better to pay the debt down a little slower and to put a bit of your available money aside in savings "just in case" something happens 4. It sounds silly, but make a budget. A budget is a tool to give you freedom. It gives you freedom from having to scrape money together for those periodic expenses that we all have (car insurance, registration, etc.). Putting a little money aside each month for each expense is much better than having to "find" a lot of money all at once to pay the bill. 5. after the credit cards are paid off, Pay yourself first! Start either a Roth or traditional IRA. You will be very happy when you retire a millionaire. Start putting some of the money you were paying towards credit card debt into a money market or savings and start saving towards your next "big" purchase. If you save enough for your next car before your current car gives out, then you'll have a new car with no car payments. Try to anticipate your purchases and save towards them before you actually want to make the purchases. That way you can pay cash and not have payments. I know it's not very glamourous, but it works, and it takes money worries out of your head and lets you have some peace. If it were me, I would:
1. contribute the absolute maximum that I could to the 401(k)
2. pay the credit card off as soon as possible (depends on your expenses, but as quickly as possible)
3. While you are paying down your credit card debt, start building an emergency fund of at least three months and preferably six months of expenses. It is better to pay the debt down a little slower and to put a bit of your available money aside in savings “just in case” something happens
4. It sounds silly, but make a budget. A budget is a tool to give you freedom. It gives you freedom from having to scrape money together for those periodic expenses that we all have (car insurance, registration, etc.). Putting a little money aside each month for each expense is much better than having to “find” a lot of money all at once to pay the bill.
5. after the credit cards are paid off, Pay yourself first! Start either a Roth or traditional IRA. You will be very happy when you retire a millionaire.
Start putting some of the money you were paying towards credit card debt into a money market or savings and start saving towards your next “big” purchase. If you save enough for your next car before your current car gives out, then you’ll have a new car with no car payments. Try to anticipate your purchases and save towards them before you actually want to make the purchases. That way you can pay cash and not have payments.
I know it’s not very glamourous, but it works, and it takes money worries out of your head and lets you have some peace.

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