Yielding Wealth | Personal Finance:
Just a fun reminder of what 2008 was all about. Let’s make 2009 better!
Happy Friday!
Tags: 2008, 2009, Friday Fun Video, happy friday, JibJab, Personal Finance, year in review
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Yielding Wealth | Personal Finance:
It’s the first reader question of the New Year:
I have a credit card with a $6700.00 balance,with an interest rate of 14%, have a CD which I can cash in to pay this down, CD will yield about $5600.00. Should I use the CD to pay down the credit card? CD is paying about 3.6%
Personally, I am inclined to take the money in the CD and pay down the credit card. The 14% interest that you pay on the credit card more than cancels out the 3.6% you are getting on the CD. Indeed, you will be paying a great deal more in interest than you could earn on the CD. Savings rates are dropping rapidly in a variety of categories, including high yield savings accounts and CDs. It’s what happens as the Fed rate heads lower. In this climate, it might be best to pay down debt while you can, doing your best to free yourself from obligations. Get the credit card paid off, and then start rebuilding your savings.
My only concern is whether or not the CD has reached full maturity. You may have to pay a penalty for cashing the CD in early if the entire term of the CD has not run its course. Do a cost-benefit analysis. Even with the penalty, you may still be saving more by getting rid of the interest payments on the credit card.
Readers: Do you agree with my assessment? Would you pay off the credit card…
Yielding Wealth | Personal Finance:
May 2009 be filled with opportunities to help you improve your personal finance situation and grow your wealth!
Best wishes for a happy and prosperous New Year!
Tags: grow wealth, happy-new-year, New Year, Personal Finance, personal finance situation, wealth
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Yielding Wealth | Personal Finance:
Every year, many of us consider New Year’s resolutions. And this is not a bad practice. It is a good idea to sit down, consider the past year, look ahead to the new year, and try to be better. I make financial New Year’s resolutions every year. Here’s what I hope to accomplish in terms of personal finance in 2009:
Rebuild the emergency fund to $1,000.
Save up four months’ worth of expenses.
Finish saving up to put in a yard.
Refinance the home with a lower rate, 15 or 20 year fixed mortgage.
Another thing I’d like to do, but don’t put up there as an especially important priority, is to start taking the necessary classes to become a certified financial planner. But we’ll see how that goes. Getting my house in order is my first priority.
Do you make financial New Year’s resolutions? If so, what are they? Leave a comment and let us all know.
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Tags: certified financial planner, financial resolutions, New Year’s resolutions, Personal Finance, personal finance poll, save, saving up
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