From the course: Build Sustainable Wealth and Get Out of Debt
Join today to access over 22,600 courses taught by industry experts.
Alloting 20% of your bracketed income to creditors
From the course: Build Sustainable Wealth and Get Out of Debt
Alloting 20% of your bracketed income to creditors
- Now for your 20%, you should be paying no more than 20% of your income to your creditors. There are a couple of debts that you should not include in your 20%. The first one is a mortgage. While your mortgage is a debt, if you don't assume a mortgage, you will need to pay rent, which falls under the category of living expenses. So unless your mortgage is excessive, you can consider it as a living expense. This means that your mortgage payments should be paid from the 70%, your income allotted to living expenses. If your mortgage is excessive you may need to consider it selling your home for a less expensive payment. The next step that doesn't necessarily belong to the 20% category is a car payment. While carrying a loan balance on a car is a debt not having a car can be a huge financial disadvantage in our society, unless you live and work in a downtown area of a large city, such as New York City. Transportation…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.