Aug. 30, 2021

046 | Financial Independence Series | Part 2 | Attack Debt & Build A Safety Net


Show Summary:

In today’s show, we take the next steps towards financial independence.  We teach you how to attack your debt and build a safety net.

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Intro:

We have a very quick intro and then we get right into our discussion on debt and emergency funds.

Main Discussion:

Gary leads the discussion for Part 2 of our Financial Independence Series: Attack Debt & Build A Safety Net.  The main takeaways and talking points are as follows:

  • Listen to Episode 022 to learn how to build a gap between what you make and what you spend.
  • Use the “gap” to pay off your debt before you start investing your money.
  • The exception is if your employer offers a match.  Take the match, it is free money!
  • Determine the type of debt you have.
  • It’s not “good” vs. “bad”.
  • Think of it as “high-interest” or “low-interest”.
  • Types of debt payback: snowball, avalanche, combination, other.
  • What to do with mortgage debt?
  • How to build a safety net/emergency fund.
  • How much should the emergency fund be?
  • What are the options for where to hold your emergency fund? Cash, Credit Card, HELOC, Cash-Out Refi, Roth IRA
  • The role inflation plays on cash in our emergency fund.

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Key Topics:

  • Debt
  • Emergency Fund
  • High-Interest Debt
  • Low-Interest Debt
  • Debt Snowball
  • Debt Avalanche
  • Mortgage Debt
  • HELOC
  • Roth IRA

Resources Mentioned In This Episode:

The Fat & Broke Book List

Next Show:

Win or Fail  Mastermind Group | Session 2 

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