Your old car payment could literally end up funding your retirement or any other financial goal you have (by the way, it's never too late to start saving. So now we ask the obvious question: is always having a new car worth $4 million to you? Our suggestion would be to consider buying a quality used car and invest the rest. If someone invests this money from age 25 to 65 in mutual funds or an index fund and receives an average rate of return of 11% (what the S&P 500 has done over the past 70 years), they will have over $4.2 million by the time they reach 65. If you are wondering where you can find money to fund your big financial goals, consider this: the average Canadian car loan payment is $570 per month. This will shave years off your mortgage and save you tens of thousands of dollars in interest.ĭeliberately not having monthly debt payments - or minimizing your monthly debt payments - is a really smart strategy that can allow you to accomplish your financial goals as long as you follow a spending plan and make sure you allocate money each month to funding your priorities. For your mortgage, consider splitting your monthly payment in half and paying bi-weekly. Once you have paid off all of these debts, focus on paying off your mortgage. To get started, focus on your most expensive debt-the credit cards and loans that charge you the highest interest. One of the best things you can do for your finances is to pay off all of your debt. It can be a very simple budget, but you should have one.
The best way to make sure that your income is greater than your expenses is to track your expenses for a month or two and then create a budget. If you are spending more than you earn, you will never get ahead-in fact, it's a sure sign that your finances are headed for trouble. Have you ever wondered what the best things are that you can do for your money and your financial future? Here is our list of the smartest things that anyone can do for their finances.
7 Smartest Things You Can Do for Your Finances - Bright Ideas for Your Money
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