Number 5 is the one that I am working on pretty hard right now. I've always been of the opinion that eliminating debt is more important than having savings. Now that I am pretty much there, I have started to focus on my emergency savings more.
It's not always good to eliminate debt. Personally, I don't like having debt, but in financial terms, sometimes it's good to have it and sometimes it's not. If you invest and get a return higher than the cost of the debt, you're leveraging your capital and improving your overall rate of return (that's the banks' secret). If the debt is financing expenses or you're getting a low rate of return, it's better not to have the debt. Saving alone isn't enough. It has to be channeled into investments to be effective. Saving is the first step, investing the second; that's how it works.
Yeah good points. I already have investments. Those get taken before takes, so I don't really even count those because I don't miss the money at all. Everything I consider is whatever is left after taxes.
Good to hear that you are making a good progress. I am still far way building emergency fund. Right now I am targeting to pay off my mortgage.. Good luck.. Cheers
My mortgage still has a long way to go and it's got a decent 3.75% interest rate, so I am not too worried about it. I do pay more than the minimum though, so I should have it paid off earlier than normal.
Nice. I guess I am also at the same state as of yours. Just that the interest rates are higher in my country. Cheers