Our grandparents

Our grandparents would be mystified at how much debt we have acquired.

We probably would get some sympathy from them until they heard our reasons for being in debt. Then they'd think we were just stupid and deserved what we did to ourselves.

Time honored tip. Don't spend what you don't have.

Try it and see what happens. Go ahead. All you have to lose is more debt.
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Don’t be clueless

In personal finance you can be on offense or defense but don’t be clueless.

Have a budget, have an emergency fund, have a plan for your extra money but don’t go through your financial life surprised when things happen that cost you money.

Personal finance isn't a mystery. Personal finance isn't hard. Personal finance is personal. Get involved in your own finances, you have no other choice.
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Emergency Fund

It’s impossible to think of absolutely everything that could go wrong and cost you money. But, that's no excuse not to plan for these things.

This is called an Emergency Fund and it needs to contain three to six months (minimum) of living expenses. This fund is separate from all your other funds and is not to be touched except in an emergency.

By the way, a vacation is not an emergency.
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Wealth

Making a lot of money doesn't guarantee having wealth.

There are people who make a large amount of money but who are still spending more than they make. Then there are those making a nominal amount of money who have more wealth than you would believe.

Read “The Millionaire Next Door” for a detailed study of this issue.
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Smallest to largest

List your debts smallest to largest. Pay them in that order.

Pay as much as possible on the smallest and the minimums on the others. When the smallest is paid off, add that payment to the next largest and repeat until you're completely debt-free.

Include HELOC’s or other loans where you used your home’s equity. Don't include the original home loan; that's saved for last.

This is called the Debt Snowball.
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Paying the way

If you're paying the way I assume you aren't sending little Billy or Susie off to college to learn how to have a good time. You’re having the talk with them, right?

The only person who should be living a life of leisure and being carefree on your money is you. Don't let your kids do that as they head off to college on your dime. You aren't doing them any favors and hurting your own future in the process.
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Warranty registration

Always take time to fill out warranty registration cards or do it online. It may come in handy. Whether you ever use it doesn't matter. The warranty will never work for you if you don't do your part.

Don't buy extended warranties. They're rip offs, high- cost insurance policies pushed at the counter. If the store has no more faith in the product than that you shouldn't have faith in it either.
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