I am a saver but I don't think I'm that financial savvy. So in an attempt to be one I want to start making baby steps starting NOW.
First on the list is to offload one auto loan which has the highest annual rate. A light bulb struck last night and it got me thinking a LOT. If we pay off this loan we can convert to a liability only auto insurance from full coverage, a difference of 100-200 per month. That's enough for a one-person ticket going to Pinas. Not only that, we don't have to pay for the monthly interest rate on the loan.
Second is to transfer some of our savings to an index fund. Our savings is sitting on a 0.9% (used to be 5% before the crisis) online savings account. It earns such a laughable amount, it's not even enough to buy a box of diapers. Why index fund? Based on my readings index funds have lower cost than mutual so you get more bang for your buck. Next step is to research what index fund to invest on. Goal: do this within the next 2 weeks and transfer 40% of savings to these funds.
Two baby steps for now will think of more later, baby is crying can't think.
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