• Or a meaningful chunk of retirement contributions • Or a large monthly investment into a taxable account • Or regular extra payments toward other goals • Extra money towards your mortgage to pay it down faster and pay less interest If you do not consciously decide where that 1,000 dollars will go, it will find somewhere to go on its own. So step one is to write the number down: “By moving, I expect to save approximately ______ dollars per year in property taxes.” Even if your estimate is rough, it is better than thinking in vague terms. Step 2: Build Or Strengthen Your Emergency Fund Most financial educators suggest that families keep somewhere around three to six months of essential living expenses in a liquid emergency fund. People with higher incomes, variable income, or multiple dependents often benefit from even more cushion. Your newly freed up cash can help you: • Create an emergency fund if you do not have one • Top it up if it is thin • Move it to a high yield savings or money market account where it earns at least some interest This step is not flashy. It does not impress anyone at dinner parties. But it is one of the most powerful stress reducers you can put in place. When a car repair, home repair, job disruption, or medical bill shows up, you are ready. Step 3: Clean Up Any High Interest Debt Not all debt is created equal. A conventional mortgage at five or 61
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