“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

 

– Owen

Debt Snowball Or Debt Avalanche Or Both?

Debt Snowball Or Debt Avalanche Or Both?

When it comes to debt payoff there are two popular strategies. These strategies are known as the “debt snowball” and the “debt avalanche”. These two popular strategies to pay off debt take advantage of human psychology or mathematics to help you pay off your debt faster.

Which debt payoff strategy you choose depends on your situation. Choosing one method vs the other may mean you pay your debt off faster OR it could mean you take longer to pay off your debt and end up making more interest payments.

The problem is that everyone in different and there isn’t a one-size-fits-all strategy. We have different amounts of debt. Our debt is spread over different accounts. And those accounts carry different interest rates (And to make it even more complicated, some kinds of debt let you reduce payments in difficult times, like some student loans, which can be a very valuable benefit!).

On top of this we all value things differently. Some of us prefer that immediate feedback (even if it means paying a bit more in the long run). Whereas some of us prefer to delay gratification a little bit, as long as it’s worthwhile in the end.

Choosing the right debt pay down strategy will depend on your personal situation and who you are as a person. In this post, we’ll summarize the two different methods and propose a third method that combines the best of both worlds.

We’ll also show you a cool little debt calculator that will help you decide which debt to pay off first.

read more
Four Financial Risks Worth Taking

Four Financial Risks Worth Taking

Sometimes you have to take a risk. Not all risks are created equal though. Some risks have rewards that greatly outweigh the potential downsides. These risks can pay off big-time down the road, but its important to pick the right ones.

When it comes to personal finance there are lots of risks (and lots of rewards!). Taking a few strategic risks can do wonders for your long-term personal finances. But it’s important to understand the trade-offs.

Almost nothing in the world of personal finance is risk free (except maybe a guaranteed deposit with an insured bank) but there are four financial risks that can be worth taking.

If you understand the potential downsides, these financial risks can have a huge positive impact on your finances.

Disclaimer: Always understand your own risk tolerance before taking on any financial risk. Your health and happiness is worth more than a bit of financial gain. Understand the pro’s and con’s before taking on any risk.

read more
Three Important Financial Factors To Consider When Buying Your First Home

Three Important Financial Factors To Consider When Buying Your First Home

It’s September and, along with the cool weather, that means the real estate market is back in full swing. Often buyers and sellers take a break during the summer, these months are filled with outdoor activities, BBQs and vacations, so this leaves little time to go house hunting.

But now that everyone is back into their regular routine the number of people actively looking for a new home starts to go back up.

When buying your first home there are a few important financial factors to consider. Not only will this be one of the biggest purchases of your life, but your home also drives a lot of on-going costs as well. These on-going costs can impact your budget for years to come.

Buying the wrong house might mean extra costs you didn’t anticipate or don’t have room for in your budget. This can mean years of financial pain and tight budgets.

Buying the right house means you’ll have lots of room in your budget to do all the things you love to do, travel, hobbies, restaurants etc.

When buying a house there are three very important financial factors to consider.

read more
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Owen Winkelmolen

Financial planner, personal finance geek and founder of PlanEasy.

“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

 

– Owen

Join our online community!

Community members get (free!) access to our budgeting spreadsheet.

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Debt Snowball Or Debt Avalanche Or Both?

Debt Snowball Or Debt Avalanche Or Both?

When it comes to debt payoff there are two popular strategies. These strategies are known as the “debt snowball” and the “debt avalanche”. These two popular strategies to pay off debt take advantage of human psychology or mathematics to help you pay off your debt faster.

Which debt payoff strategy you choose depends on your situation. Choosing one method vs the other may mean you pay your debt off faster OR it could mean you take longer to pay off your debt and end up making more interest payments.

The problem is that everyone in different and there isn’t a one-size-fits-all strategy. We have different amounts of debt. Our debt is spread over different accounts. And those accounts carry different interest rates (And to make it even more complicated, some kinds of debt let you reduce payments in difficult times, like some student loans, which can be a very valuable benefit!).

On top of this we all value things differently. Some of us prefer that immediate feedback (even if it means paying a bit more in the long run). Whereas some of us prefer to delay gratification a little bit, as long as it’s worthwhile in the end.

Choosing the right debt pay down strategy will depend on your personal situation and who you are as a person. In this post, we’ll summarize the two different methods and propose a third method that combines the best of both worlds.

We’ll also show you a cool little debt calculator that will help you decide which debt to pay off first.

read more
Four Financial Risks Worth Taking

Four Financial Risks Worth Taking

Sometimes you have to take a risk. Not all risks are created equal though. Some risks have rewards that greatly outweigh the potential downsides. These risks can pay off big-time down the road, but its important to pick the right ones.

When it comes to personal finance there are lots of risks (and lots of rewards!). Taking a few strategic risks can do wonders for your long-term personal finances. But it’s important to understand the trade-offs.

Almost nothing in the world of personal finance is risk free (except maybe a guaranteed deposit with an insured bank) but there are four financial risks that can be worth taking.

If you understand the potential downsides, these financial risks can have a huge positive impact on your finances.

Disclaimer: Always understand your own risk tolerance before taking on any financial risk. Your health and happiness is worth more than a bit of financial gain. Understand the pro’s and con’s before taking on any risk.

read more
Three Important Financial Factors To Consider When Buying Your First Home

Three Important Financial Factors To Consider When Buying Your First Home

It’s September and, along with the cool weather, that means the real estate market is back in full swing. Often buyers and sellers take a break during the summer, these months are filled with outdoor activities, BBQs and vacations, so this leaves little time to go house hunting.

But now that everyone is back into their regular routine the number of people actively looking for a new home starts to go back up.

When buying your first home there are a few important financial factors to consider. Not only will this be one of the biggest purchases of your life, but your home also drives a lot of on-going costs as well. These on-going costs can impact your budget for years to come.

Buying the wrong house might mean extra costs you didn’t anticipate or don’t have room for in your budget. This can mean years of financial pain and tight budgets.

Buying the right house means you’ll have lots of room in your budget to do all the things you love to do, travel, hobbies, restaurants etc.

When buying a house there are three very important financial factors to consider.

read more
Page 3 of 2912345...

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