Eliminate debt

Today’s post is about saving money at home–a good thing whether or not you are a teacher!  Because teachers are used to researching things, they tend to have great ideas about stretching a dollar! I’ve learned a lot by watching my coworkers.

Personally, I believe that you should eliminate debt from your financial picture.  That way, you can mount any financial problems that come your way. And the problems WILL come your way.

Dave Ramsey and Suze Orman have great plans for doing this.  Dave uses the snowball debt method that involves paying the smallest loan off first, then start applying that to the next largest and so on and so on….  In our case, we started with the largest interest rate and did the same thing.

It’s important to have a nest egg of a couple month’s pay. In this way, you become your own bank and do not have to rely on your credit card for emergencies–thereby paying someone else interest.

In our case, we have a car fund that we pay into instead of paying a car loan. When we have enough money in it to replace our car (and it needs to be replaced) we do it. We research used cars that last a long time and then service our cars regularly. It has really paid off in the long run. The money that could have gone towards interest on a loan is in our pocket!

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Filed under Books, debt, Frugality, personal finance, teaching

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