Teaching you to embrace today while making yourself a millionaire!

I wish I would have understood how easy it is to become a millionaire by starting to save small amounts of money when I was younger...

I feel compelled to share the simple concepts you can apply today....


21 July 2009

Tuesday Tips

Stefan's Quarterly Financial Progress

Let's look at someone who is on the right track..... Our Tuesday Tips blogger Stefan has agreed to let us track his success over time. This is our second quarter of following him.

He called me very excited last week as his net worth went over $17,000.
Last quarter it was $10,000.
First job starting salary $35,000 a year.

No debt other than student loans that he is paying off ahead of schedule. Graduated from The Ohio State University in 2008 and hopes to have paid off by 2014.

He started with approximately $35,000 in private and government loans. He now owes $27,000.

In one year he paid down $8,000. He pays $468.00 a month which is $5616.00 a year.
He puts big chunks of money on his loans when he receives his tax return or a bonus. He is paying off the private loan first as the interest rate is higher than the government loan.

He has over $5000 in his emergency savings account.
Last quarter he only had $1000.
He has increased his personal savings from $200 a month to $250.

He continues to save 16% into his 401k. He became eligible for 4% employer match after a year of employment - FREE MONEY! Yippee.

He is currently educating himself on real estate so when the right deal comes along he is ready to make a decision.

It goes to show you do not have to make alot of money to slowly increase your financial security. Everyday choices and being aware of how you spend your money - makes the difference.

We will continue to check in with Stefan on a quarterly basis to see how he is progressing.

Stay tuned...

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