Consolidating student loans through the department of education
I receive a ton of questions surrounding Dave Ramsey’s recommendations. Lets just say the best choice for you would be to put it towards a new home…
Again, this is not to say all student loans should be created equal!
In a rental, you’re building your landlord’s net worth. Your interest payment is you paying a premium for that flexibility.
Just remember, by owning a house, you’re building equity…
Today’s offering is about being prepared for those unexpected events life throws our way… An Emergency Fund, is just a cute term for a cash reserve. Whatever you want to call it, this isn’t earth shattering stuff here. We’re not trying to cover our gym membership, our wine club membership, getting your nails done, etc.! So I don’t care how young you think you are, unless your crystal ball is in perfect working order, everyone needs an Emergency Fund. I’m not going to spend a great deal of time talking about the obvious advantageous of home ownership, primarily because they are indeed obvious… When you purchase a home & you pay down your mortgage you’re building equity in your home. the amount you’re paying in rent doesn’t go towards equity… Traditionally speaking, an individual is responsible for coming up with 20% of the home’s purchase price & the bank finances the remainder. The second part of the premium is factored annually but is paid monthly.
An Emergency Fund is just a stock pile of cash you’ve saved in order to cover unexpected expenses & by doing so, allows you to avoid the mental angst of not be able to cover those unexpected expenses that come around every time ‘life happens’. Unfortunately people, those are perks & luxuries of life, not necessities! If you ask the CFP Board, they will tell you a person should have anywhere from 3-6 months worth of necessary expenditures saved in their Emergency Fund… Frankly, I think the answer is somewhere in-between. I have friends who feel having enough money cover a few months expenses is enough. This premium will vary depending upon the overall structure of your loan.