Financial professional Jeff Bangerter from Bangerter Financial Services is explaining to Mae why some common “money rules” may need to be broken.
- Save 10% of Your Income
Saving 10% of your income for retirement sounds like a nice round number, but this rule-of-thumb falls short because it does not consider the age at which we start saving.
- Pay Off Your Mortgage Before Saving for Retirement
Remember, mortgage debt isn’t always a bad thing. In most cases, it’s the last debt you pay off. I know the thought of owning your own home free and clear sounds like a great idea, but it could actually put you in a less secure situation later on.
- Don’t Use Credit Cards
Using credit wisely is an important part of building a good credit history. Lenders will be more likely to offer you a better interest rate if you have a good credit score.
- Get a Tax Refund
People get excited about receiving a tax refund. While, it feels good not to owe the IRS money, in some cases, getting money back isn’t always in your best interest.