The worst is yet to be upon us. Even though the worst can happen but it’s still not here. It’s fine to be prepared. But, this shouldn’t interfere with making financial choices. It is important to be aware of the fear factor when making important financial decisions. In this short video we will discuss whether you should pay off loans or set aside funds for the worst.
If you are in financial debt, that is unavoidable. Recessions are not inevitable. In any case, your debt must be paid. Thus, wealth management firms may advise that you pay your debt as fast as possible so it is not required to pay interest payments. On the flip side be sure to have some emergency money saved up in the bank just for the event of a crisis. The best rule of thumb is to keep three months’ salary saved at your bank just for the event that things turn worse. In other words, you may lose your job for three months , and not feel the effects. If you’re debt-free with three months ‘ savings, there is an euphoria is a reflection of your financial position.