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Another important thing to consider: reduce liabilities ASAP. I'm writing an article on this currently, but I see way too many friends and co-workers who have o
by rdegges 7y ago
Another important thing to consider: reduce liabilities ASAP. I'm writing an article on this currently, but I see way too many friends and co-workers who have over-leveraged themselves: large mortgages, car loans, student loans, etc.
In good times it is a good idea to reduce leverage (pay down your debts) so you have less monthly burn.
If you are in a highly leveraged position right now, here's my advice: get a 6 month (or 1 year) emergency fund in place ASAP, pay off any debt using the debt snowball method (smallest debts first) to free up cash flow, and DON'T TAKE ON ANY MORE LOANS!
The difference between having a monthly burn rate of 3k (with no debt) and 8k (with debt) is massive and will dramatically impact your life: anxiety, stress, emergency fund, etc.
Now's the time to derisk yourself as much as possible.
- tistoon 7y agoI am in the process of buying a condo apartment (Canada) (each year real estate was usually a 6% increase in value). I sent the signed approval friday, but they refused it because my PDF was sign electronically. I was about to re-send it Monday.. What is your opinion? Thank you!
- matthewaveryusa 7y agoSave the paper trail, talk to a lawyer
- Hydraulix989 7y agoReal estate in NYC is already dipping 30%, you could have definitely timed this one a bit better, but if you are in it for the long-haul, then you’re fine.
- blaser-waffle 7y ago> debt snowball method Dave Ramsey's "Snowball" method is nice for the hodunk folks who don't get finance, but really you should be paying off the highest interest rate first, since that will cost you the most. Snowball is good from a psychological and (kind of) from an administrative sense, but it's mostly to help people take control of their financial situation, not make the most cost-effective long term choices.