Hey guys whats up its KristynAlexis welcome
back to my channel. I am your curly career girl and today I am
kicking off a segment on my channel called “Money Monday’s.” Where I am essentially going to be sharing
with you topics related to your finances and its essentially coming from my myfico score. I know from looking at my analytics that a
lot of you have come from that video. I am going to talk about topics that come
from the questions I received in the comment section on that video. As well as topics I have overcome in my personal
life as it relates to my finances. This is a topics that is near and dear to
my heart. I am just one of those people where money
and how I manage my money is really important to me. I know you only get so much and you have to
be very good at maximizing what you have. I wanna kick this video off where I am going
to talk to you about paying down your credit cards or saving money and this is something
that I think a lot of us at some point in your financial “adult life” is going to have
to battle with and figure out what the best thing is to do for you. But I kind of want to give you some rules
of thumb to stick by that have worked well for me. That I think can work for you as well. I think these are easy things you can kind
of do that temperature check to see “yeah” I think this is about where I want to be with
this. I am going to leave you a couple of tips and
I am going to make this video straight to the point because I want you to take away
from it the pearls that I have that I think are important. With that lets go ahead and get into it! So essentially your probably sitting here
watching this video; your going…. Okay, I got this money and maybe its a bonus
you get or your taxes or you’ve just been really good with saving money and you have
a decision to make. Do I put this money in my savings account
or do I pay down these lines of credit that I have over here. For me there are a couple of things that I
always stick to as a rule of thumb when I have this decision to make. One of the first things I think is really
important to consider is how much money do you have. How much disposable income do you have. If you take that money and you pay down the
credit, or the line of credit. Is that going to leave you where you don’t
have anything left. If it does what would you do in the event
of an emergency. If it is a line of credit that you cannot
access then I would caution you on doing that. So for example lets just say were talking
about a car note. You’ve got this car and you owe $3,000 and
you have $3,000 over here that you could pay off the car with. Its a great idea to make that payment and
pay that car off; however, if its going to leave you in a financial position where you
do not have any money left I would caution you on that only because you always want to
be careful and be ready for an emergency in the event that it happens. So you may want to do 2k or 2,500 and then
once you pay that last amount off you leave yourself with income that you would have been
paying on that car note every month that now has opened up in your budget. So that is one thing that I would take into
consideration. Now if you’re someone that doesn’t necessarily
have enough to pay off the debt and you’re dealing with this lump sum or whatever the
case may be and the loans you have over here are consumer debt or rolling credit cards
that if pay will leave a new available amount of that same dollar value I would say I would
consider paying those credit cars off and let me give you another reason why. When you do that typically you going to be
paying more interest on the credit than you would be able to earn in savings. You’re basically looking lets just say you’ve
got a 10% interest over here on that credit card and you can earn 2% over here in savings. If you put the money to the savings that is
great but guess what you’re still going to have you’re monthly payment on that credit
card, you’re still going to be paying 10% in interest on this credit card which essentially
means you’re loosing 8% of your money and my opinion the best thing to do is to pay
the credit card. Open up that available amount on your credit. Which is also going to increase your credit
score. It makes it where your monthly payment that
you would need to put on that credit card is going to go down. And God forbid in the event of emergency you
can still access those funds even though it may not be what you want to do. So in my opinion I would put those dollars
on that line of credit that is revolving so that you’re still in a position where if an
emergency did happen you could handle it and the great thing is now by doing that you’re
reducing your monthly amount that you have to pay out and you’re increasing your disposable
income and now you’re able to continue to build that snowball to pay off those credit
cards. So in my opinion that is how I do it I hope
that this helps you a little bit. If you have a topic that you want to talk
about for this money Mondays. Be sure to drop it in the comment section
below. I am very interested in your ideas and I want
to talk about stuff that is relevant to you guys so I want to do this every Monday. This is going to be a series that I keep rolling
on my YouTube channel. I am probably going to upload this video during
the week sometime so its probably not going to come out on Monday because forth of July
was yesterday so today is Tuesday that I am recording this. But after that I am going to do these every
Monday so that you have a new video but with that I am going to let you guys go. Make sure you subscribe so that you do not
miss out on any of my updates on this series and as always remember I have a new video
every Sunday at 4 p.m. so I am going to let you guys go but thank you so much for watching
and I love you and good bye.