What is your biggest financial goal? Whether you’re aiming to pay off credit cards, buy a home or afford to enroll in school, each one of us has something important we’re working toward. After all, financial goals are the reason we’re working, right? Lately, I’ve been feeling like my financial goals are a bit hazy. There are lots of things I’d like to accomplish, but I’m drifting in no particular direction.
To help me gain some focus, I made a list today of every monthly payment I make. This includes everything from my car and student loans to medical bills and utilities. If I fork out cash for it, it’s on this list. Next, I assigned the interest rate I pay to each item. Last, I rearranged my list according to interest rate, from highest to lowest. For example, my medical bills and utilities don’t charge interest, so they’re at the very bottom. My credit card is at the top, as it’s my priciest debt.