Living on one income

Couples should practice living on one income. That practice may come in handy someday.

It also will give you a good idea how much more should be in the Emergency Fund.

Your lifestyle should be no more than your income to get by. Your lifestyle should be less than your income to be prepared. Your lifestyle should be 1/2 of your income to succeed.

Where are you?
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Get your money's worth

Whether you're paying for college on your own or using a student loan (UGH!) remember that the professors work for you. Be sure to get your money's worth.

Every dollar borrowed for that degree needs to be repaid with future earnings. If you impress that upon yourself maybe you won't be so quick to skip class, flunk a test, or blow off studying.

College is fun, but it costs to have fun in or out of the classroom.
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Home Costs

If you have to take a home loan go with a 15-year fixed mortgage where principal, interest, taxes and insurance doesn't exceed 25% of your take-home pay. You shouldn't have any other debt either.

This is stress-free home ownership. It also allows you to easily set aside 1% - 3% of your home's value in a fund for home maintenance, repair, and upkeep.
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Friends or family

Don’t borrow from friends or family. The borrower is slave to the lender.

Here's a story. Mom and Dad offer a loan for a down payment on a home. They offer a fair interest rate and better terms than the couple could get at the bank.

At Thanksgiving the couple mentioned they were going on a cruise. Dad got quiet, Mom shot a sideways glance. The couple paid off the loan the next week.
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Happy Independence Day!

Only you can gain your independence from debt.

Happy Independence Day!
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Options increase as debt decreases

Your options increase as your debt decreases.

If you spend every waking moment worried about debt your eyes aren't open to opportunities that present themselves. You're focused on not losing more ground. However, if you don't have debt and a good thing comes knocking all you have to consider is "yes" or "no" instead of whether or not it will work for you.

There's a big difference between these two mind sets.
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College-bound

Whether or not you have money saved you need to tell your college-bound child they aren't off the hook completely.

Getting every grant or scholarship they qualify for is their new job. Armed with lists of national, state, and local sources of education cash they can start filling out forms and selling themselves.

Your children will learn to work for what they want and appreciate what is gained from their efforts.
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