Debt is an epidemic in America. Almost everyone has a car loan, or student loans, or credit card debt. And many have all three.
Shopping sprees, medical bills, and emergencies can deal a fate blow to your finances. Once your debt is overwhelming, it can cripple your life.
It becomes impossible to save money to achieve your goals. You can’t save for a down payment on a house or your kids’ college. On top of that, it adds stress and anxiety, which makes the problem worse.
What you need is a game plan for getting out of debt. That’s where this post comes in handy. With a strategy in place, you’ll know what you have to do. Here’s a three-step process for paying off your debts.
Step 1: Reign in the budget
Your first order of business is to make a budget. You do this by calculating your spending and income. Then make adjustments so you spend less than you make.
Decide how you want to track your spending and income. A popular website for tracking your money is Mint. Or you can create an excel sheet on Google Sheets. If you’re more old school you can use a pen and paper.
Once you choose your method of tracking your budget, now it’s time to collect data. This can be intimidating, but it’s a necessary step. List everything you’re spending money on and where you’re money’s coming from. Get a solid idea of how much you spend and make every week or every month.
Now that you see the numbers, let’s start cutting things we don’t need. If you’re eating out too much, focus on grocery shopping and making meals at home. If you have too many bills, cut services like Netflix or club memberships.
The goal is to spend less money than you make. Remember, the less money you spend, the more money you can apply to debt.
Step 2: Apply all extra money to debt
Once your budget is in place, you’ll have spare money to apply to your loans. This step requires a lot of self-discipline. Once you free up your finances, you may be tempted to buy something. But remain focused on your ultimate goal – paying off debt.
Begin by making a list of all your loans. Make sure you include the amount of each loan and its interest rate. You can’t use the right solution without properly understanding the problem. This overview will give you good intel on how to proceed next.
Step 3: Pay off one debt at a time
The strategy here is pretty simple. Make the lowest payment on all your loans, except one. Select one loan and pay as much as you can. Which loan should you tackle first? There are two strategies:
The Snowball Method
This method was popularized by financial guru Dave Ramsey. It’s also the one I recommend. You pay off the loan with the smallest amount first. Then you work on the next smallest amount. This strategy rewards you early on. You feel good after paying off a loan. Use that emotional energy to keep paying off more debt.
The Avalanche Method
In this method, the first loan you pay off is the one with the highest interest rate. Mathematically speaking, this is the fastest way to pay off your debt. It might take time before you see or feel a difference. But once you pay off that first loan, the next one is crazy easy to pay off.
Watch your debt disappear
Paying off debt can be scary and discouraging. It becomes feasible once you have a plan in place. When you have a road map, all you have to do is take it one step at a time.
The first few months might be hard. You’ll cut your spending and apply money to loans. And it won’t feel like your debt is disappearing. But trust me – it’s working.
Eventually, that first loan will fall off your shoulders, and it’ll feel amazing. Then you’ll have more money to apply to the next loan.
Keep going and watch your debt disappear.
STUDY: Number of Billionaires Doubles in Last Decade
The number of billionaires has doubled in the past decade and the world’s wealthiest 2,153 people controlled more money than the poorest 4.6 billion combined last year, the charity Oxfam said Monday.
Meanwhile, unpaid or underpaid work by women and girls adds three times more to the world’s economy each year at least $10.8 trillion than the technology industry, the Nairobi-based charity said in its “Time to Care” report.
Women around the world work 12.5 billion hours combined each day without any pay or recognition, while the world’s 22 richest men have more wealth than all the women in Africa.
“It is important for us to underscore that the hidden engine of the economy that we see is really the unpaid care work of women. And that needs to change,” Amitabh Behar, CEO of Oxfam India, told Reuters.
“Our broken economies are lining the pockets of billionaires and big business at the expense of ordinary men and women. No wonder people are starting to question whether billionaires should even exist,” Behar said ahead of the annual World Economic Forum in Davos, where he will represent Oxfam beginning Tuesday.
“Women and girls are among those who benefit least from today’s economic system,” he added.
There will be at least 119 billionaires worth about $500 billion attending Davos this year, according to Bloomberg, with the highest contingents coming from the US, India and Russia.
“The very top of the economic pyramid sees trillions of dollars of wealth in the hands of a very small group of people, predominantly men,” the Oxfam report said.
“Their wealth is already extreme, and our broken economy concentrates more and more wealth into these few hands,” it said.
To highlight the inequality, Behar cited the case of a woman called Buchu Devi in India who spends up to 17 hours a day walking almost two miles to fetch water, cooking, preparing her kids for school and working in a poorly paid job.
“And on the one hand you see the billionaires who are all assembling at Davos with their personal planes, personal jets, super rich lifestyles,” he said.
“This Buchu Devi is not one person. I in India encounter these women on a daily basis, and this is the story across the world. We need to change this, and certainly end this billionaire boom.”
Behar said that to remedy the problem, governments should make sure above all that the rich pay their taxes, which should be used to pay for amenities such as clean water, health care and better schools.
“If you just look around the world, more than 30 countries are seeing protests. People are on the street and what are they saying? That they are not to accept this inequality, they are not going to live with these kind of conditions,” he said.
Source: New York Post
(c) 2020 2019 Vanguard Media Limited, Nigeria Provided by SyndiGate Media Inc. (Syndigate.info).
Dow Jones Industrial Average Breaks 29,000 For The First Time in History
Slight gains send Dow Jones Industrial Average above 29,000!
The Dow Jones Industrial Average closed above 29,000 points for the first time and the S&P 500 index hit its second record high in three days Wednesday.
The milestones came on a day when the market traded in a narrow range as investors weighed the latest batch of corporate earnings reports and the widely anticipated signing of an initial trade deal between the U.S. and China.
President Donald Trump and China’s chief negotiator, Liu He, signed the “Phase 1″ deal before a group of corporate executives and reporters at the White House. The pact eases some sanctions on China. In return, Beijing has agreed to step up its purchases of U.S. farm products and other goods.
“This was telegraphed well enough that the market is kind of looking through it and toward the next phase and what that means,” said Keith Buchanan, portfolio manager at Globalt Investments.
Health care stocks accounted for much of the market’s gains. Utilities and makers of household goods also rose. Those gains outweighed losses in financial stocks, companies that rely on consumer spending and the energy sector.
The S&P 500 index rose 6.14 points, or 0.2%, to 3,289.29. The index also climbed to an all-time high on Monday.
The Dow gained 90.55 points, or 0.3%, to 29,030.22. The Nasdaq composite added 7.37 points, or 0.1%, to 9,258.70.
Smaller-company stocks fared better than the rest of the market. The Russell 2000 picked up 6.66 points, or 0-4%, to 1,682.40.
The benchmark S&P 500 index is on track for its second straight weekly gain.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.78% from 1.81% late Tuesday.
While limited in its scope, investors have welcomed the U.S.-China deal in hopes that it will prevent further escalation in the 18-month long trade conflict that has slowed global growth, hurt American manufacturers and weighed on the Chinese economy. The world’s two largest economies will now have to deal with more contentious trade issues as they move ahead with negotiations. And punitive tariffs will remain on about $360 billion in Chinese goods as talks continue.
With the “Phase 1” agreement now a done deal, investors have more reason to focus on the rollout of corporate earnings reports over the next few weeks. Earnings have been flat to down for the last three quarters, and if the fourth quarter meets expectations, it should be around the same.
However, analysts are projecting 2020 corporate earnings growth to jump around 9.5%, which is why traders will be listening this earnings reporting season for any clues management teams give about their business prospects in coming months.
“We’re expecting a reacceleration in the back end of the year, so any (company) guidance that brings any type of skepticism to that could threaten the recent rally we’ve had and the gains that we’ve accrued in the past few months,” Buchanan said.
Health care stocks powered much of the market’s gains Wednesday. Several health insurers climbed as investors cheered a solid fourth-quarter earnings report from UnitedHealth Group.
The nation’s largest health insurer, which covers more than 49 million people, said its revenue rose 4% on a mix of insurance premiums and growth from urgent care and surgery centers. Its stock rose 2.8%. Other health insurers also moved higher. Anthem gained 1.6%, Cigna added 1.5% and Humana climbed 1.9%.
Technology companies also rose. The sector is reliant on China for sales and supply chains and benefits from better trade relations. Microsoft gained 0.7% and Advanced Micro Devices gained 0.8%.
Utilities and consumer staples sector stocks also notched gains. Edison International climbed 2.5% and PepsiCo rose 1.7%.
Financial stocks fell the most. Bank of America slid 1.8% after reporting weaker profits due to the rapid decline of interest rates in late 2019.
Energy stocks also fell along with the price of crude oil. Valero Energy dropped 3.3%.
Homebuilders marched broadly higher on news that U.S. home loan applications surged 30.2% last week from a week earlier. The pickup in mortgage applications reflects heightened demand for homes and suggests many buyers are eager to purchase a home now, rather than waiting for the traditional late-February start of the spring homebuying season. Hovnanian Enterprises jumped 6.4%.
Target slumped 6.6% after a disappointing holiday shopping season prompted the retailer to cut its forecast for a key sales measure in the fourth quarter. The company said weak sales of electronics, toys and home goods crimped sales growth to just 1.4% in November and December.
Benchmark crude oil fell 42 cents to settle at $57.81 a barrel. Brent crude oil, the international standard, dropped 49 cents to close at $64 a barrel.
Wholesale gasoline fell 1 cent to $1.64 per gallon. Heating oil declined 3 cents to $1.88 per gallon. Natural gas fell 7 cents to $2.12 per 1,000 cubic feet.
Gold rose $9.70 to $1,552.10 per ounce, silver rose 25 cents to $17.92 per ounce and copper fell 1 cent to $2.87 per pound.
The dollar fell to 109.91 Japanese yen from 110.00 yen on Tuesday. The euro strengthened to $1.1150 from $1.1128.
Markets in Europe closed mostly lower.
Andrew Yang Wants You to Make Money Off Your Data by Making it Your Personal Property
Andrew Yang, 2020 Democratic presidential candidate, plans to regulate the tech industry by prioritizing in giving people the right to own their personal data (“data as a property right”), thus allowing them to make money by sharing it with companies. Currently, companies entirely own users’ data – users do not have much control over it.
Yang said, “our data is now worth more than oil” and gave emphasis to the great amount of data people create and how companies make money over it. “By implementing measures to increase transparency in the data collection and monetization process, individuals can begin to reclaim ownership of what’s theirs,” he said.
He also cited a report saying that the collection and use of Americans’ personal data has become a $198 billion industry. Yang believes that people should have more control over their data, such as being able to see how their data is being used and having the freedom to opt out if they choose.
Yang added that we need politicians “who understand technology and a modern way to regulate it,” as reported by Engadget. “In order to regulate technology effectively, our government needs to understand it. It’s embarrassing to see the ignorance some members of Congress display when talking about technology, and anyone who watched Congress question Mark Zuckerberg is well aware of this,” said Yang.
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