Finances are one of the challenging aspects of adulthood. Many struggles to keep up and handle their finances resulting into problems.
At some point, when it’s not addressed correctly, these problems might stack on top of the other and give you hardest of time. However, saving money can be a difference of life-long comfort from despair.
Money is a form of security. You’ll need it for health, survival and even for self-indulgence. Unexpected money needing events warrants a reasonable amount of emergency fund. This fund could cover unexpected car repair, emergency appendectomy or even sudden job loss. A 3 to 6 months value of your expenses is an ideal emergency fund.
Emergencies are times you least expect. If you don’t have the funds at the moment, you’ll probably end up with a loan. And loans make it even harder to become financially stable. Unlike a planned and pre-approved car or house loans, these are loans you are not prepared to pay. So better have a good backup plan for such unannounced times.
For times you have no chance of avoiding loans, a good money-saving attitude can still be the difference of almost a hundred thousand dollars of interest.
As Wharton School of the University of Pennsylvania professor emeritus of finance, Jack M. Guttentag says, a surprising number of borrowers who can afford the payment on the 15-year mortgage choose the 30-year option because it gives them greater freedom to spend on other things. At this rate, they would rather pay $136,320 interest rather than $48,054.
Not realizing the value of money and not thinking of the future might blind you from these facts. You might want to reconsider your options and utilize some mortgage payment calculator like the one provided by American Loans. Utah has a good and dynamic economy, and you might not want to get stuck on loan.