My Two Cents: Interest

Document created by kellanj on May 23, 2016Last modified by on Dec 5, 2016
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    Interest: It makes you money or it costs you a lot of money.

    I'm not an expert but these are some tips I've learned through my years of dealing with credit. I'm 26 and really making efforts to be debt free and make money work for me.

Interest on Credit Cards

  • Always pay more than minimum payment
  • What is your rate? If its over 15% that's bad.
  • Transfer credit card debt to a credit card with 0% interest for 12months or more.
  • Credit Unions usually have better rates.
  • If you get rewards, use for gas and pay off every month. Make money from it.
  • Keep your oldest account open to keep your credit history longer.


Interest on Investments and Savings

  • Start saving early, even if its a little.
  • Make a goal, every check take 5 or 10% and keep it. Its YOURS, but don't spend it. Soon you'll have something to invest.
  • Find a ROTH IRA pay taxes first and later have a nest egg not taxed.
  • I only made 2% interest last year on my IRA but the other funds lost 2%. (Index funds are good.-- Low risk--Low Return)
  • It's compound interest, every day just keep savings something.
  • Stop financing Cars, they just cost you more insurance, a car payment and can still break like a used car. I buy $500 cars. They last at least a year or I would be paying $300 a month to finance one.


Books I Recommend:

  • The Slight Edge
  • I Will Teach You to Be Rich
  • The Millionaire Next Door


I learned a lot from these books and some old mentors. I have made enough mistakes now, that I have learned  a lot. I am almost out of debt, I don't make a lot of money right now because I am in school. But I am mitigating losses by doing some of these things, especially the credit card switching and not paying for a brand new car. If you don't know any of your financial information, ask your institutions and track it. You will be amazed how much a $200 TV costs on credit for 6 months its a lot more than $200.


Thank You,

Kellan J