The Power of $5

We tend to overlook the power of small steps. We want a magic bullet to somehow make us thinner, richer and more successful. But much of life is simply putting one foot in front of the other in the direction we want to go. If your financial goals seem out of reach, consider what you could do with just $5 a day.

If you could find $5 a day to save instead of spend, by the end of the month you would have $150. By the end of the year, you could have saved $1,800 toward an emergency fund or expenses that would have otherwise gone on your credit card.

If you used your $150 to contribute to your company retirement savings plan, and your employer matches your contribution, you could turn it into $300 a month just like that. In a year you would have contributed a total of $3,600 toward retirement.

A recent CNBC article highlights a survey done by In it they found 42 percent of those aged 18 to 37 don’t know when or if they will ever be able to pay off their debt, and 20 percent expect to die with it. The average non-mortgage debt was $36,000.

You could use your $150 to make an extra payment on your debt. If you add $150 to the current minimum payment and make the same payment every month going forward, you could have $36,000 of debt completely paid off in as little as three years, depending on your interest rate. Of course that assumes you stop adding to it.

Once your debt is gone, instead of making payments on it, you could work toward your other financial goals, like saving more for retirement, saving for your children’s education and other things that are important to you. If your $36,000 of debt is credit card debt, the minimum payment is over $800. With your extra payment, it’s $950. That is a lot of money that could be going toward all your other goals.

Where could you find $5? Most of us spend money on things that aren’t important to us. Did you eat take out lunch at your desk? If so, you probably don’t even remember what you had, and you could have saved $5 by bringing your lunch from home.

You might be able to shave $5 a day, or $35 a week, from your grocery bill by changing the store where you shop or shopping more carefully so you have less food waste. There might be a combination of things you could do, like changing your phone plan, getting rid of the gym membership you don’t use, and turning down the heat when you aren’t home.

It doesn’t seem like much money. Just $5 a day. But the impact can be so powerful. You can have more financial security and your big financial goals are within reach. You only have to take the first step, even if its a small one. Whatever you do is progress, and you may be able to do more in the future. It may not be a magic bullet, but it will do the trick.

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For a comprehensive, step-by-step guide to building your own financial plan, pick up my award winning book, Save Yourself; Your Guide to Saving for Retirement and Building Financial Security.  It is available on Amazon.

Header photo by Sharon McCutcheon on Unsplash

How to Clean Up Your Financial Junk Drawer

Today’s post comes from guest writer Aiden White.
Aiden is a San Francisco based writer. Discussion and debates on financial and political subjects are her forte. Being a debt fighter in her personal life, her goal is to share innovative thoughts and knowledge in the debt communities. Get in touch with her at

What’s in your financial junk drawer? Is it incomplete goals from 2018? Or could it be that you are not coming clean with your partner on some financial issue? Like the junk drawer in your kitchen, you may be reluctant to look at what is lurking in there. But to be successful in reaching your goals you have to sort through it.

Incomplete Financial Goals

It’s easy to say you want to do something, but it’s harder to commit to it. Saving more money or reducing debt are common New Year’s resolutions, but if you weren’t successful in achieving your goals in 2018, it could be that you didn’t put enough specificity around them. Here are a few common goals and how to define them in a way that will motivate you.

Build an emergency fund

An emergency fund is savings that will help you in the event of a personal financial crisis such as the loss of a job, a prolonged illness or an unexpected major expense. Your emergency fund should be enough to cover at least three months of basic living expenses. Yours may need to be bigger depending on your circumstances.

This is your top priority. To help you achieve it, define how much you need to save and determine exactly what you will do to save it. For example, you might decide to get a jump on your savings by dedicating your next bonus or tax refund to it. You might decide to cut out restaurant trips until your emergency fund is in place.

Set milestones. Determine what you will save each month, have saved in six months, etc., and when you will complete your emergency fund. Whatever your strategy, you will be more likely to achieve your goal if you have one.

Get out of debt

Debt creates financial insecurity. With debt, your emergency fund needs to be larger than it otherwise would need to be, and you are more prone to a financial disaster.

Consider consolidating high-interest credit card debt or multiple credit cards to a 0% APR balance transfer card. You may also be able to consolidate other unsecured debt like payday loans, utility bills, medical bills, personal loans, etc.

Once your debt is consolidated and you are down to your lowest interest rate possible, you can pay down your debt using a strategy such as the debt snowball. In this strategy you make only the minimum payment required on all your loans except the smallest one. Pay as much as you can on that one. Once that is paid off, take the full monthly payment you were making on the smallest loan and combine it with the minimum payment on the next smallest loan. Continue through the remaining obligations.

As with your emergency fund, you’ll need a strategy for raising the money to make extra payments on your debt. Determine what you will do differently as part of setting your goal.

Create and follow a budget plan

A recent survey revealed that only 32 percent of people make a proper financial budget. Your budget is your strategy for achieving your goals.

If you need guidelines to get started, experts suggest a 50/20/30 rule. 50 percent of your money should be used for essential spending (rent, transportation, utilities), 20 percent should go towards completing personal financial goals (saving and paying off debt), and the remaining 30 percent could be used for discretionary expenses.

Save for your retirement

Supporting yourself in retirement takes a lot of money. To make it as painless as possible, you need to start saving for it as soon as you can. A recent survey from Provision Living revealed that 43% of millennials have $5,000 or less in savings for retirement.

Start by taking advantage of your employer sponsored retirement plan, especially if they offer to match your contributions. The automatic contributions will make saving easier for you. If your employer doesn’t offer a retirement savings plan, open a Roth IRA. You can make those contributions automatically as well by having your employer make a direct deposit from your pay to your IRA account.

Hidden financial secrets

According to, one in twenty people in a serious relationship have a secret bank or credit card account. Whether you’re embarrassed by a purchase you made or you’re keeping a slush fund so you can spend money without discussing it with your partner, this could be considered financial infidelity.

The problem is that many of us still hesitate to talk about money with anyone, even with the person whom we love the most. Keeping financial secrets can ruin your relationship as well as create grave financial problems. This corner of your junk drawer may be hard to face, but you must for the health of your relationship and your finances.

That financial junk drawer is causing you stress. Unfinished business and unrevealed secrets will stay on your mind until you resolve them. Perhaps this year’s resolution should be to get rid of the junk drawer all together.

Save Yourself is now available on Amazon

It’s Here!

Thank you to everyone who has followed my posts for the last few years. I am extremely excited to announce that my book is now available on Amazon!

Save Yourself is a comprehensive guide to saving for retirement and shoring up your financial security so you can do whatever it is you want. Through the stories of real people, it shows you exactly how you can make the changes that will allow you to save for a long and secure retirement so that you don’t need to work for pay. In addition, it covers other aspects of true financial security, giving you peace of mind throughout your life.

Early reviews are very positive. Here’s one that a reader was kind enough to post on Amazon.

The Save Yourself guide to retirement planning justifies the need to take control of your financial security with meticulous statistical research and lays out the step-by-step plan to reduce debt, budget and achieve financial independence. If you are putting planning off, author Grandstaff’s remark that “The monthly savings requirement more than doubles for every ten years you delay” is a sobering statement to prompt action to read her work and get started today.”

Happy reading! Reviews are very important to help other readers find the book, so please post one back at the same Amazon page. Again thank you for your kind attention, and have a wonderful holiday season.

On The First Day of Christmas…

Last year, I posted this financial redo of the classic 12 Days of Christmas. My daughter and I actually sang it in a video, which was fun. This year I’ll spare you that. If you’d like to see it, you can find it in last year’s post. Here’s wishing you love and joy and true financial security!

On the first day of Christmas my true love gave to me a fund for emergencies

On the second day of Christmas my true love gave to me a budget for expenses and a fund for emergencies

On the third day of Christmas my true love gave to me a maxed out retirement, a budget for expenses and a fund for emergencies

On the fourth day of Christmas my true love gave to me a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the fifth day of Christmas my true love gave to me a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the sixth day of Christmas my true love gave to me full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the seventh day of Christmas my true love gave to me insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the eighth day of Christmas my true love gave to me a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the ninth day of Christmas my true love gave to me a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the tenth day of Christmas my true love gave to me a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

On the eleventh day of Christmas my true love gave to me a long-term care policy, a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

On the twelfth day of Christmas my true love gave to me, a pledge to be mortgage free, a long-term care policy, a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

Merry Christmas everyone!

Photo by rawpixel on Unsplash

Are You Saving Too Much?

This may seem like a strange question coming from me. As a huge proponent of saving, my usual advice is to save early and save often. Mostly I think there isn’t any such thing as saving too much. However, if you have debt, and you are finding it difficult to pay it down while you save, you are saving too much.

It can be confusing. Everyone says you should be saving for retirement. And it’s true. The earlier you begin saving for retirement, the easier it will be to save enough to support yourself when you stop working for pay.

However, there are a couple of things that need to come ahead of maximizing your retirement savings, and one of them is reducing your debt. If you have outstanding debt, other than your mortgage, saving money may not be improving your financial situation. You may be simply running in place.

Debt reduction is a form of saving that is as good or better than others, and paying down your debt can offer you a better return than saving.

According to Wallet Hub, the average credit card interest rate in the second quarter of 2018 ranged between 14.2 to 22.4 percent. When you pay down your credit card debt, you are saving the interest expense. That translates to a guaranteed return on your money that is better than any investment opportunity.

If you have car payments or student loans, the interest rates may be lower. But the lower rate doesn’t make it less important to pay them off.

If you have debt, you may be able to earn more by paying it off than you can by saving and investing in the investment markets. But that isn’t the most important advantage of paying off your debt. The biggest advantage is in the flexibility and security you will gain.

Debt payments are a mandatory expense. You can’t choose to not make them. As a result, when you have debt you are closer to the financial edge. If you lose your job, or can’t work because you’ve become ill, your reserves will be chewed up faster if you have debt payments. Your emergency fund needs to be larger because your mandatory expenses are larger.

You will be better off if you reduce your savings, so you can pay off your debt faster. However, there are two exceptions.

  1. Before you begin aggressively paying down your debt, make sure you have an emergency fund. You should be able to cover your mandatory expenses for three months. Make only minimum payments on your debt until your emergency fund is in place. Having the emergency fund will help you stay out of debt in the future.
  2. If your employer offers to match your 401(k) contributions, and you can make extra payments on your non-mortgage debt while getting the match, then contribute enough to get that. It’s free money.

Beyond establishing an emergency fund and getting your 401(k) company match, focus  all your extra money on paying down your debt.  You’ll be able to save more once your debt is paid off.

If you are having trouble getting rid of your debt, then save less. Debt reduction is a form of savings, that offers a guaranteed return equal to the interest rate on your loan. Getting rid of it is an important step in building your financial security, and once it’s gone, you’ll have the flexibility to put even more in savings.

Photo by Justyn Warner on Unsplash

Four Hidden Reasons to Never Borrow From Your Retirement Plan

If you need money and you have money in your retirement account, it can be very tempting to borrow from it. It is your money after all.

Most retirement plans allow participants to borrow against their balances. About one in five 401(k) participants have an outstanding loan, and over a five-year period, almost 40 percent of participants borrow from their account at some point. Most loans are taken to pay off debt, usually of the credit card variety.

That can make some sense, since the loan rate on a 401(k) loan is lower than rates on credit cards. But there are other costs beyond the interest rate. While you are essentially borrowing from yourself, there are several consequences to taking the loan that make this a bad idea.

  1. While your loan is outstanding, your money is not invested in the market. You are earning the interest on the loan to yourself, but you are missing out on the greater growth you could get from stock market-oriented investments. The market rate of return is the true cost of your loan. Historically the stock market has returned on average 10 percent per year.
  2. Some employers don’t allow you to make contributions while you have a loan outstanding. If that is the case with your plan, you will miss out on the opportunity to grow your retirement account balance. If your employer matches contributions, you will also miss out on that.
  3. Your loan is repaid with after-tax dollars. When you retire, the money you repaid, like the rest of your balance, will be taxed when you take it out to meet your living expenses. So your loan will be taxed twice.
  4. If you leave or are let go from your job, you will only have sixty days to repay the loan or it will be considered a distribution. The distribution will be taxed as ordinary income in the year you take it, and you will pay an additional 10 percent penalty.

Instead of taking out a loan from your retirement account, consider what other options you have. If you are consolidating debt, have you considered taking advantage of a zero or low interest promotion on a credit card? Instead of adding to your debt, can you reduce your spending either by cutting discretionary expenses or by making bigger changes to lower the cost of where you live or how you get around?

In some cases, a loan on your retirement account may be the best of a few bad options, but that doesn’t make it a good one. There are costs that aren’t obvious, and they put you at risk of a big tax bill if you lose your job.

Photo by Ehud Neuhaus on Unsplash

Love and Student Loans: 4 Tips to Make it Work

So you’ve found your perfect match. He’s funny, kind and hard-working. You love doing the same things, especially together. But after finishing grad school, he has a mountain of student loan debt. Is he still the one?

These days 17 percent of student borrowers have more than $50,000 in debt. That debt load comes with repercussions. The payments will crowd out the other uses for your money, and the financial strain could lead to relationship strain.

Using a standard ten year repayment plan, monthly payments will be over $500 per month on a balance of $50,000. That is a big bite out of anyone’s salary. However, most who have that level of debt choose an extended repayment plan to lower the payments. Using a 25 year repayment schedule, the payment will decline to $331 per month.

In ten years, 65 percent of the loan will still be outstanding, and by the time the loan is fully repaid you will have paid interest equal to the amount of the loan. So for a $50,000 loan, $50,000 in interest will also be paid.

Generally those with graduate degrees have higher paying jobs, making it easier to handle the burden of the payment. But it’s not always the case. Now more and more, undergraduates are leaving school with high debt balances without the higher professional salaries.

The payments and the length of time they hang around will make reaching your other goals more challenging. The loan payments will reduce the amount you can afford to spend on housing, daycare, vacations and more. They will make it more difficult to save for retirement and college for your own kids. You will need to have a larger emergency fund to cover the debt payments, and it could be harder to qualify for a mortgage.

It’s no wonder that a significant number said they wouldn’t marry someone until their debt was paid off. If your partner-to-be has significant debt, you need to go into the marriage with your eyes wide open. Here are a few tips to make sure your relationship can handle the extra burden.

  1. Openly discuss the debt.
  2. Understand that as a couple you will be paying off the loan together. If your partner has to give up something to pay off the debt, you’ll be giving it up too. For example, if he puts less into retirement savings, you’ll both have less to retire on.
  3. Agree on how you will adjust your lifestyle to fit in paying off the debt and meeting your other financial goals.
  4. Pay down the debt as quickly as you can. Avoid repayment plans that allow you to pay less than the interest owed even if you qualify for them. If you pay less than the interest owed, your loan balance will grow every month. You are essentially borrowing more with every payment.

Debt can put a strain on any relationship. If you are diving into a new one with debt hanging over your heads, know what you are in for. Don’t believe the debt is your partner’s problem. It’s yours too if you go forward. But if you work together, you can still accomplish your financial goals.

Don’t Gloss Over the Cost of College

If you have a high school junior at home, you may have spent the week of spring break touring a few college campuses. It’s the perfect time to kick off the college selection process with your prospective college student.

You want the world to be your child’s oyster, and no one wants to talk about expenses when dreaming about the future. However, as you reflect upon the tours, it is a good time to bring a dose of reality into the equation.

College is expensive no matter where your child chooses to go, but some choices will set you back farther than others. The following chart shows the average cost of college for the 2017-2018 school year from the College Board.

Average Cost of College

While most parents want to send there children to college, only about 57 percent of them save for it. The average household savings for college was only $16,380, according to Sallie Mae. That means the money must come from somewhere else. The following chart shows how America pays for college, also from Sallie Mae.

How America Pays for College

A full 28 percent of the cost of college will be paid for with loans. The average student loan debt per borrower from the class of 2016 was $27,975. At the current Federal Direct student loan interest rate of 4.45% for undergraduates, over the standard 10 year repayment period, payments on loans of that amount will be about $289 per month.

That can be a significant piece of a new graduate’s entry level job income. It’s no wonder that 30 percent of college graduates with student debt move back in with their parents. With money like this on the line, it is important to sit down with your future college student and cover the facts.

Here are five things to discuss with your child before she chooses a school.

  • Tell your student how much you will be able to pay. This includes what you have saved and what you are willing to commit to out of your income. The converse of this is how much should she expect to pay. Only 70 percent of parents of teenagers have discussed their expectations with their child.
  • Outline options for raising the extra money. In addition to student loans and scholarships, your student may be able to raise some money through part-time or full-time work. Taking a gap year to work and save up for school is a reasonable approach.
  • Help your student understand the implications of their choices. Student loans may be hard to avoid, but they can certainly be minimized if you understand your trade-offs. You can calculate the monthly payments given different loan amounts on the Federal Student Aid web site.
  • Provide context for the information. Estimate the kind of monthly salary your student might earn given her career interests. Payscale’s College Salary Report is a good place to start. It wouldn’t hurt to also talk about average living expenses. Career Trends has a cost of living calculator. Don’t forget to show the impact of taxes. How much of her take home pay will be left after student loan payments?
  • Consider starting school at a community college. The average cost per year at public two year colleges is only $3,570 assuming your student can stay at home while she attends.

If you don’t have enough saved to pay for college, think carefully about the impact of paying for school out of your current income. If you are behind in saving for your own retirement, paying for college should not be your top priority. Your child has time to recover from the expenses of school. You do not.

A college education can substantially improve your child’s ability to earn a living. But taking on a lot of debt to pay for it can weaken her financial stability. Help her understand that her choices have implications for her lifestyle after school. Before she makes her final decision, she should know what she’s in for.


Your Credit Score Demystified

Credit scores are an important number. They will determine whether you can get a loan and how much interest you will pay. They can also determine whether you can rent an apartment, and it is becoming more common for employers to check your credit score before they hire you.

Unfortunately, the credit score carries a lot of mystery and mythology for many. So, in this post, you’ll learn all you need to know about them.

The credit score was invented in the 1950s by the Fair Isaac Corporation. It didn’t catch on initially as a tool, but in 1970, the Fair Credit Reporting Act was passed, which standardized data collection and reporting. The FICO score (from the Fair Isaac Corp initials) gradually gained prominence as a tool for assessing credit worthiness from there.

Your credit score has five factors, each weighted according to their importance in determining whether you are likely to repay your loan. The following table summarizes the factors, weights and what they scores

The biggest factor in determining your credit score is your payment history. So the most important thing you can do to raise your credit score is to make your payments on time. The second biggest factor is how much debt you have outstanding, and the next easiest way to improve your score is to pay down your debt.

Opening and closing accounts can have an impact on your score by shortening the average length of time your accounts have been open, but it will be minor compared to whether your payment history is strong and your balance is manageable.

A friend, who tries to maximize her travel rewards to minimize the cost of travel, opens credit card accounts for the bonus miles and then cancels them once she has what she’s after. She continues to have a stellar credit score, because she always pays on time and never carries a balance. If you have paid off a credit card balance, don’t hesitate to close the account if you no longer use the card.

Checking your credit score has no impact on it. While credit checks to establish new accounts can influence your score under the new credit factor, simply getting a credit report or viewing your score on-line does not change your score.

Regularly reviewing your credit report is an important defense against fraudulent activity in your name. I recently found a credit card account I had not opened on my credit report. Through a little correspondence with the credit agency and the lender I was able to get the account shut down. Debt established in your name is payable by you unless you actively work to close down accounts you didn’t open.

You can actually live without a credit score. If you are committed to living debt free, a credit score is not necessary. Even if you want to get a mortgage, but have no other debt, you don’t need to open some credit card or buy your next sofa on credit to establish a credit history. The things you do all the time will be enough.

If you pay your rent, utilities, cell phone and other bills, on time, and you have a down payment, you have what you need to get a mortgage. However, without a credit score, you may need to work with a smaller mortgage lender and allow more time. The larger lenders like the efficiency of seeing your character summarized in a single number.

Credit unions, independent mortgage brokers, on-line lenders and smaller banks may all be willing to provide the customer service needed to assess your credit worthiness without a credit score.  You can get pre-approved before you go house hunting and still be ready to jump on the perfect place when you see it.

You won’t be negatively impacted by having no credit score with other credit checkers. Having no credit score means you have no debt, which is a profound statement these days. Your future landlords will be happy to review your history with prior landlords. Employers looking to judge your character by your credit score will get the information they need by its absence. Certainly no score is much better than a bad one.

Your credit score is an important number, and the best ways to keep it strong are to pay your bills on time and pay down your debt. If you can accomplish that, the other factors play a minor role. You can live without a credit score, so don’t take on debt simply to establish one.

Fight Credit Card Debt with a Credit Card

Welcome to 2018. Now that the Christmas decorations are put away, the champagne has been sipped and the resolutions made, it is time to get down to business. If one of your resolutions was to pay down your credit card debt, there is a tool you may not have considered that can give you a leg up. It’s another credit card.

No, I usually don’t endorse opening new credit cards. You’ve got enough trouble with the ones you have. However, if you are truly committed, a card where you don’t have to pay interest will juice up your debt reduction efforts for any payment amount you intend. The reason is more of your payment will go directly to reduce your balance and less to interest.

Some credit cards offer a balance transfer feature with a zero percent interest promotion for the first 12 to 21 months, depending on the card. If you transfer your balance from another high interest card, you won’t incur interest during that promotional period. That means your entire payment will go to pay down your balance.

The cards generally have a 3.0 to 5.0 percent balance transfer fee. But compared to the high average annual rate charged on a typical credit card, it may be well worth it.

A survey done by U.S. News and World Report, found that most credit card holders who carry a balance had not used zero interest credit cards to reduce the cost of their debt, and two thirds thought they could pay off their balance within 18 months, a typical promotional period.

The following table shows how transferring a $3,000 balance from a typical credit card, with a 16.0 percent interest rate, to a card with a zero interest introductory rate could save you money and get you out of debt faster. With a $200 monthly payment, the balance is paid off two months earlier on a zero interest card, and you save $277 in interest, after the balance transfer fee.

Zero Interest Credit Card

There are some pitfalls, and not all cards are created equal. The first area of concern is which transactions get the zero interest treatment. For some cards, it is only new purchases, and for others it is only the balance transfer. Since you are trying to reduce your debt, you want zero interest on the balance you transfer.

Avoid making new purchases on your card. If you make additional charges, it can hamper your debt reduction efforts. When a card charges different interest rates on different transactions, regulations require payments above the minimum be applied to the balance with the highest interest rate. That means your extra payments will pay off your new purchases before they go to pay off the balance you are working on.

The financial institutions issuing these cards have no mercy when it comes to late payments. If a payment is late during the zero interest period, you may lose the zero interest benefit, and your rate will bounce up to the current new purchase rate. As a result, you will have paid the transfer fee for no reason.

Finally, if you are unable to fully pay off the balance you transferred within the promotional period, you may have to pay deferred interest on the balance remaining. That means your remaining balance will be charged the new purchase interest rate for the full introductory period at the end of that period.

U.S. News has a good comparison of the top balance transfer cards. In addition they provide a more in-depth guide to determining whether a new credit card is the right move for you.

Before you embark on this debt reduction mission, make sure you are working on the right priority. Debt reduction is not the first step on your road to financial security. Your emergency fund is. Don’t make extra payments on your debt until you have built up at least three months of living expenses in savings.

Debt reduction should also wait until you can manage it as well as a contribution to your company retirement savings plan large enough to get the company match. The company match is free money. Or, put another way, it provides a 100 percent return on your contribution. Debt reduction saves you a lot, but not nearly 100 percent.

Eliminating your high interest credit card debt is an important goal. If you have an emergency fund in place and you are getting your full company match in your retirement savings plan, it is the next thing you should be working on. Taking advantage of a zero interest credit card, can make your efforts even more effective. For at least a short time, your payments will go directly and fully to reducing your balance.

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