Maze of Debt Part 11

    Start saving at the same time as you pay down debt

  This is one of the most debated areas I will cover in the Maze of Debt serious.  You see some people say to through all your money towards your debt, and others say do not worry about your debt and to only save.  Well I see more people do none of these things and either rack up a lot of money in accounts and never live, or they keep spending and never know when to quit.

I want to make this simple.  it should be the goal of people to do both.  The problem comes down to the thought of compounding.  Some of the great minds in the World have realized that this is the best thing we can do with our stuff.  Well the fact is that we can only really compound money very easily.  With compounding you will not need to put away $100 to spend $100.  You might only need to put away $5.00.  It all depends on time and the interest you get on the money minus any taxes Uncle Sam will take.

For this reason I believe we can control two of these things.

 First, we can control the amount of time we save money.  It is up to you when you want to put money away.  The longer I save the money more money I will make.

Secondly, we can put money into places that we do not pay taxes on them.  "You can not do that", you might say.  Well the saying that death and taxes are automatic is not true.  I know of places to put your money that you will not pay takes on it when you take it out.  This means that when you have the money in this place the money will compound faster.

Now for the third step.  I like to put money in a place for retirement that I will not lose it, and that I will be able to get to it with out taxes issues, and Uncle Sam slapping my hand for taking it if I need it.  You see most people lose their house because they could not get to the money they need.    I have a place that we can put this money and get to it to buy cars, pay for college, and have a good retirement.  The interest rate is good.  It is not the best out their.  Well even the best out there will have you risking to lose your money.  I am telling you to save your money and do not put it at risk.

Now we have the little issue of paying down your debt.  When we work together we develop a system for you to pay that debt off and save, and I still want you to have some extra money each month so you are not living paycheck to paycheck.  This can be done.

If you would like to learn how the banks make all their money and what they do not want you to know ask me.  I will give you a report showing you.  It is Free to you.

One last thing.  I want to share the rule of "multiply by 25".  It is a simple rule when looking at savings.

The Multiply-by-25 Rule is a simple rule. But it is the most powerful money management tool that I have discovered in 10 years of studying what it takes to win financial freedom early in life. The best practical advice that I can offer those seeking to learn how to start saving is to start making use of the Multiply-by-25 Rule on a daily basis when faced with decisions as to whether to spend or save money.

It says this.  If it costs you 100 dollars a year for a birthday present then you need to multiply that by 25 to pay for that item the rest of your life with out taking any more money out of your pocket. So, right now I would put away 2,500 and earn 4% a year on that money I would get $100.00 a year to pay for that present.

This idea is to tell you that you can use this to way if you want to be spending money on something.  Is it a need or a want?

I can keep writing for ever on this issue, but will wait and write more about this in a different serious.

 If I can help you in anyway please ask.  It is my goal to help people get out of debt in less time and not rely on the other to take care of them in their retirement years.

Best to you.

Dave

Financial consultant.

Bartlett, IL

Start saving at the same time as you pay down debt

If you have any questions on how to pay down debt in 7 to 11 years and retire with an extra $20,00 to $50,000+ of tax free money email me.

Dave is a trusted financial consultant that has helped  1,00's of people.