You can reach financial success but you need to manage your debt wisely. Be ready to tackle some tough choices and trade-offs if you are aiming to grow and accumulate wealth.
Your planning should start as early as possible so that you have a reasonable early start on your roadmap to accumulate wealth, have financial flexibility, and retire comfortably and early.
Jumpstart your children’s college education by investing in 529 savings plans for your child’s education as early as possible. This will lessen your debt burden.
Before actively looking to buy a home, make sure to check your credit reports first to see what kind of financial shape you are in. Make sure it becomes a regular part of your life to habitually check your credit reports and score.
It allows you to free up capital you would have used to buy that home and invest it in the higher-yielding S& P 500 stock index, which has higher returns than the mortgage rate you would be paying.
Using the avalanche method, your priority would be to pay down your debt that is most costly first. That will likely be your credit card balance by targeting the credit card debt at the higher 15% rate.
Two methods to reduce debt: the Avalanche Method and the Snowball Method