There are all sorts of work we must do to live. Of course, the most important work is that which provides us with the wherewithal to get through life: the heat, the light, the rent, and the water! Once all that is secured then it’s important for us to reflect on other work that must be done. I for one make a distinction between expenses and debt. Expenses can change and sometimes even be eliminated completely. Debt is for most of us a necessary component of our daily lives because of mortgages, car loans, and the most hated credit cards that make life easier though more costly. I personally am not a fan of budgets but instead like to list monthly regular recurring costs so that one does not develop a false sense of financial well-being. I at present have 11 items on my monthly list of “gotta be’s”! That list was once 18 items long but over the years by paring down and consolidating it is finally at a new all-time low. When I consider expenses these all show up on this monthly list. Debt must be treated differently if it has variable rates of interest because it is incumbent upon you to try to lower those rates as soon as you can. I know it is easy to assume everyone knows the basics of variable debt, but its importance is such that here are a few things that must be restated. Do not make just minimum payments on credit card debt. Look for deals that can reduce interest rates being mindful that the 3%/5% fees are great but after that rate expires the rate that then goes into effect must be no greater than the rate you are now paying. Also, after if you decide to take the offer many cards charge you a percentage on any new purchases. With out a second card to use you are not making head way but adding to your overall debt. My suggestion is along with your monthly list you create a second list that you keep up on a quarterly basis to see how your overall debt is improving.
Two other things to do and track is self-improvement geared to your work that provides you the wherewithal to get through life and long-term investment. When it comes to long term investment the Mathmatecum provides the best and safest investment you can find. Though participation in the Mathmatecum is limited, a person should maximize their participation by joining individually and also creating a Mathmatecum Directive. For those who follow this blog and have been investing in I bonds the month of April is crucial. I bonds purchased then will have a guaranteed interest rate for the next 30 years of 1.37%! A figure not seen in many years.
JAI BABA
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