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Let’s be honest. For most of us, spending money is way more fun than saving it. But, the importance of saving money cannot be overstated. So whether or not the habit of saving money comes easy to you, it’s helpful to keep yourself on track (or get yourself on track) by remembering all the reasons why saving is important. Sure, some of these reasons may seem terribly obvious, but they are important enough that we could all use a reminder every once in a while.

Focusing on the reasons why we should be saving money also helps reframe our thinking on the subject — and dare I say, make saving money seem a little bit more fun? …

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Paying off a mortgage is a tremendous milestone in life. Most of us yearn for the day when we won’t need to make those monthly payments anymore. It’s not surprising then, why so many people consider the option of prepaying their mortgage. Even if a mortgage is considered ‘good debt’, what’s not to love about the idea of paying it off more quickly? The truth is that deciding to prepay your mortgage isn’t as simple it may seem.

Before you think about paying your mortgage off early…

The first step is to actually check with your lender to see if there are any penalties or fees associated with prepayment. Yes — sometimes trying to be a proactive, responsible borrower can bite you in the ass. So check your mortgage contract for prepayment penalty or fee clauses. If prepayment penalties exist in your contract, they are typically applied within the first few years of the mortgage. …

The 80/20 rule is not scientific law but it holds eerily true in most scenarios. The rule states that a majority of output will come from a minority of the input. In layman’s terms, it means that 80% of your results will come from only 20% of your effort. Depending on the specific context of the situation, the ratio may fall more in line with 90/10, 85/15, or 70/30. But regardless of the specific number, the rule holds steady.

The reverse is also true. If 80% of your results come from only 20% of your effort, it means that the remaining 80% of your effort only produces 20% of the results. …


Audra Kershner

Founder and author of The Ambitious Dollar - a personal finance & professional development blog with the aim of providing easy to digest & applicable info.

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