![]() The better move is to always pay more than the monthly minimum. If your minimum monthly payment is 4% of your outstanding balance, it will take you more than 11 years to eliminate this debt, even if you don't make any new purchases with this card. Say you have a credit card with a balance of $5,000 and an interest rate of 18.9%. If you do this, it will take far too long to pay off your credit card debt. This makes your monthly debt grow by too much, even if you don't add any new purchases to your cards.ĭon't just make the minimum monthly payment on your cards. That's because cards come with such high interest rates - sometimes 18% or more. Pay Off Your Credit CardsĬarrying a balance on your credit cards each month is a terrible financial decision. Read More: 4 Money Resolutions You Should Skip This Year 3. But if you deposit what you can each month - even if it is as small as $100 - that emergency fund will steadily grow. (See also: 6 Emergency Fund Myths You Should Stop Believing) Financial experts recommend that you build an emergency fund that can cover at least six months of your daily living expenses. The better option is to draw from an emergency fund of cash that you have already saved, usually in a savings account. What happens if your furnace conks out today? What if your car's transmission needs to be replaced? If you're like too many people, you'll put the cost of replacing these items on your credit card, building your debt. You'll never regret your decision to maximize your contributions to your 401K plan or your annual deposits to an IRA. One way to reach such a lofty goal? Put away as much as you can each year now, even if your retirement days seem far away. ![]() The survey found that more than one in 10 workers think they'll need to save at least $1.5 million for their retirements. You'll need more money if you plan to travel the world, and less if you envision days spent reading, binge-watching TV, and playing with your grandchildren.Ī survey released last April by the Employee Benefits Research Institute suggests that more workers understand they'll need large amounts of money to enjoy their retirement years. How much money will you need each year to enjoy a happy and healthy retirement? That depends on what you want to do after you leave the working world. Make the moves on this list soon, and you'll dramatically increase your odds of a happy financial future. Here are eight financial decisions you can make now that you'll never regret. And even if you've already broken the resolutions you made at the end of the holiday season, it's never too late to make new ones, especially when it comes to your finances.
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