By: Salwan Salem & Christina Salem
Guest writer to Salem’s Vision
7 easy steps to slowly build yourself to a better financial future.
Step 1: build emergency fund $1000 minimum (justtt in case) Step 2: pay off all debts (for me, it’s student loans) Step 3: build REAL emergency fund 3-6 months (covering all expenses) add up how much you make monthly and subtract your bills and expenses than multiply by 3-6 accordingly. Step 4: save up to buy a house. Put 25% down 15 years fixed mortgage only. Don’t spend more than half half total annual income. Ex: on owning a car, boat, motorcycle, jet ski, etc and to own a house it has to be 25% down 15 years mortgage fixed interest rate and the monthly payment includes Taxes and insurance it should not be more than 25% of your annual income Step 5: mutual funds/IRA 10-15% and 401k (get your retirement SET) Step 6: pay off house while contributing to IRA over 15-year fixed. Step 7: contribute to IRA and vacation funds