I want to make a list of realistic goals for next year. I'm not sure whether to focus on debt reduction, building up an emergency fund or start the extension on my house and just make the minimum payments to all debts. The extension will add value to the house so is kinda like put money in the bank. Trying to do all at once is a little demotivating as I wont see much progress on anything. The secured loan on my property has a very high interest rate (12%) so i would obviously like to reduce this ASAP.
I will give a breakdown of my monthly expenses in my next post. In the mean time, any suggestions will be greatly appreciated.
I would say Emergency Fund first but always make your minimum payments. Start with just a one thousand Euro's (can you beleive it my keyboard doesn't have a Euro symbol) Emergency Fund. If that is all you can deal with at the moment. The standard EF is 3-6 months expenses which you should get a ballpoint number for anyway.
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Hi. Sorry havnt been using this in a while. I have my emergency fund built up to the equivalent of 4 months expenses and put away in the credit union. I would ideally like to have 6 months but thats just not possible for now. I think my best option for debt reduction is the snowball method to clear the smaller debts first.
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