I wanted to introduce you to The Motley Fool. It’s a wonderful Website on all the facts about Personal Finance & it’s geared towards the young at heart. Actually, it’s geared to anybody wanting to know how to become financially educated.
What do I really like about The Fool? This is where I woke up when I started to follow their guide on How-to Guide: Reduce your Debt. More specifically, when I completed step #3 about getting a bird’s eye view of where my family stands, by completing the “Debt-to-Income Ratio” Worksheet (perhaps, I should have called my site “Step #3”!). This was a HUGE eye opener.
So, since it really awoke my senses, I wanted to share their advice with you. My eye opener? I realized that my family carried 86% Bad-Debt-to-Income Ratio! The recommended percentage to carry, if none at all, is 15% or less of your after-tax income! Eeeks! An eye opener, huh?
So, my family is working on erradicating this percentage! And hopefully faster than planned. Try the Fool’s Guidance.
If you care to share, what is your Bad-Debt-to-Income Ratio?
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What a good tool!
It can only get better, right?
My 401k is already depressing me. I’m not sure if I can take another one-two punch. 😛 But thanks for the resource! I’ll check it out after I’ve downed my bottle of bootleg booze. 😀
Hi there-I’ve just worked out mine is 38%, so not brilliant, but not too bad either!! I heartily recommend the Fool, I’ve been a reader since 2000 and without their advice, I wouldn’t have reduced my debt like I have. The discussion boards are excellent, particularly dealing with debt and living below your means!
frugal trenches: it can only get better.
I can’t wait until the momentum picks up after my EF meets its goal. Then those payments will be generated to my snowballing. Debt-free here we come! 🙂
shtinkykat: like I tell my mother…stop looking at your 401! 🙂
we’ve all lost a couple thousand to many thousands. but if you are in it for long term… it will come back. Even with the hardships, investments still produce good returns in the looooong run.
but, you can still pass the bootleg booze. 🙂
sharon rose: you are doing fantastic! My family is in the 80-percentile. I can’t wait to reach where U R at!
And the Fool is very valuable. Some great advice that anyone can understand.
Happy Sunday, fellow bloggers! 🙂
wow – what a great tool – thanks for bringing that to light – although, I have to say that I am not really ready to know what my ration is! eek! I bet it would be horrible!
jpkittie: come on… (just kidding) I have 126% Bad-Debt-2-Income Ratio! (it was 86% in the beginning when I didn’t figure the student loans). 🙂
I feel like I should join Debtor’s Anonymous. ha! Back in the day we would just look and say something like, “ya, we can afford an extra xxx”. And now, we put it all on paper and it’s like, “what the hell were we thinking!”.
But, 90% of the process is realizing you have a problem. Now, if I can just prove to knock it down. 🙂