Susan and Bob came to my office to discuss their financial situation. They proudly announced, “We have no debt; we even repaid our mortgage.” Like many clients, Susan and Bob had bought into the belief that no debt is good debt. However, unlike credit card debt or other consumer debt, your home mortgage is actually good debt that can be used to your advantage.
You’re planning that long-awaited, well-deserved vacation. You’ve researched the itinerary, booked the airfare and hotels, and even made some restaurant reservations. Nothing left to do but arrange for transportation to the airport. Right? Wrong. There is one more important decision to make before you leave for your trip. You will need to determine if you should pay an additional fee for insurance on your rental car. Here’s what you need to know in order to decide:
Perhaps you’re finding yourself in a situation similar to mine. My bright orange 2004 SUV has seen better days, and I’m tired of its never-ending need for repairs. Time for a new car! But there are decisions to be made. What make? What model? And, importantly, should the next car be leased or bought? Here are some key questions to help guide the decision:
Define your financial goals and values and then study how and why you already spend your money. Websites and smartphone apps can help with tracking spending patterns. Developing "mindful awareness" of emotions and judgments that create spending "needs" will lead to change.