Pay Debts Forever
While researching other topics, I found a four-year-old Motley Fool article on saving. I particularly liked their advice to pay debts forever, but to make yourself the payee.
Many of us have some kind of monthly loan payment, whether it be a school loan, a car loan, credit card debt, a mortgage, or all of the above. The day will come when you send in your final payment. But unless that debt has been debilitating, you’ve been doing fine while making those monthly payments. So, keep it up. Except, instead of sending a check to the lender, send the check to a savings, brokerage, or mutual fund account. You’ve increased your net worth by paying off the debt; now, keep up the good work by building up your assets.
Clever and effective.
[Motley Fool: Seven savings tricks]
![[tips [-at-] moneyhacks [-dot-] org]](http://www.moneyhacks.org/images/tips.jpg "Please include any credit information you'd like posted, too"){kind=small}
.
Aaron A. said,
February 13, 2007 @ 9:25 pm
I love that article. Well, I just love the Fool in general. A corrollary, frequently championed by the members of the Fool bulletin boards, is: When you get your car paid off, keep chucking money into a savings account toward your next car. Then, when you go out to find that next car, you could conceivably pay 100% cash up front for that car. Imagine the leverage that would give you at the dealership, plus you could save even more on finance charges and insurance.