Two for Tuesday: Calculator 1 + Calculator 2
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Hello, and Happy Tuesday! Because many of you had asked, I decided to be really practical and share two of my favorite online calculators for this week’sTwo for Tuesday. While these may not apply to your current financial situation, they’re still handy to know about for future use, plus you can impress your friends if they’re looking for a resource. |
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1. BUY VS. RENT
Whether you’re a first time homebuyer or ready to downsize,The New York Times developed this great tool to help you navigate through the decision of whether it makes more financial sense to purchase a home or rent.
2. AVALANCE vs. SNOWBALL
Are you familiar with the two main approaches to paying off debt? While both require that you make minimum payments on each loan, the Avalanche method recommends that you direct surplus payments to the debt with the highest interest rate; the Snowball method is to direct extra payments instead to the debt with the smallest balance. You can start exploring the two methods here.
Of course, as practical as these tools are, keep in mind a couple of things:
First, with any online calculator, be careful not to disclose personal information about yourself to protect your privacy (with the debt calculator, for example, consider even entering placeholders such as “Card 1” and “Card 2” instead of “American Express” and “Chase” for increased anonymity).
Second, remember that these online tools are just a starting point. There are a lot of other factors that likely to impact your decisions to “Buy vs. Rent” or “Pay Off Card 1 vs. Card 2”. I love that each of these provide just enough information to get you to started, but remember to seek a professional opinion if needed.
Have a great weekend, everyone!