GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
Additionally, having competing financial goals can impact individuals ability to save for retirement.
What Is the Financial Vortex?
Lets also say that interest rates were high when they took out the loan.
By the time retirement rolls around, they could be in a difficult position.
Competing priorities and limited financial resources make it difficult to balance multiple goals, according to Goldman Sachs.
Steering clear of it requires keeping a long-term perspective, attaining achievable goals and makingproductive financial decisions.
Here are three things that can help you from falling into afinancial vortex trap.
Get Out of Debt
For those in debt, getting out is easier said than done.
Regardless of the amount owed, finding an effective method for dealing with it is important.
Two of themost popular methodsfor getting out of debt are the snowball and avalanche methods.
The snowball method has you list your debts from smallest to largest.
The idea behind this is to eliminate your debts one by one and build momentum.
Always payingonly the minimum paymentsor haphazardly putting money toward debts can feel like youre not making any progress.
The avalanche method is similar, but with this strategy, youll list your debts by interest rate.
Tackle the highest interest rates first, which are oftencredit card balances.
At its core, living within your means is spending less than you earn.
Doing this can help you prioritize other financial goals, like creating an emergency fund and saving for retirement.
Downloading budgeting apps, taking online courses and listening to podcasts can also assist you in reaching your goals.
More From GOBankingRates
Share This Article:
