six percent is one thing. A credit card at twenty percent is something else entirely. Many major financial institutions and consumer education sites show that paying down high interest debt is often one of the best “investments” you can make with extra cash, simply because the “return” you get by avoiding that interest is effectively guaranteed. If your move frees up cash each month and you have any high interest balances, consider directing some of that savings to: • Credit cards • Personal loans • Variable rate debts Once those are gone, the same monthly dollars can be redirected to building assets rather than plugging holes. Step 4: Pay Yourself First (On Purpose) A concept you see often in financial education is “pay yourself first.” It simply means that before your money disappears into day to day spending, you automatically move a certain amount into savings or investments.
Your property tax savings is a perfect candidate for this.
For example, if your tax savings are 1,000 dollars per month, you might decide: • 400 dollars to retirement accounts • 300 dollars to a taxable investment account • 200 dollars to extra principal on your mortgage or other strategic debt • 100 dollars to guilt free “fun” spending The specific mix should come from a conversation with your financial advisor and your own priorities. The main idea is that you decide intentionally and automate as much as possible. 62
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