Smart Money Moves: FAQs for Debt Elimination

Discover the strategies to avoid costly mistakes and stay on track to financial freedom.

Author

Paul Stryer
November 19, 2024

MOMENT OF MINDFULNESS
Thinking About The Future:

Take a moment to reflect on these questions. If you're journaling, write both the question and your answer in your journal.

  • What emotions come up when you think about having 3 to 6 months of expenses saved in your emergency fund? How does that compare to where you are now?

YOUR WEALTH GUIDE: NEWSLETTER
Smart Money Moves: FAQs for Debt Elimination

As I help people eliminate debt and build wealth, there are many questions that I get asked. But some of those questions get asked over and over again. In today’s blog I decided to put together a Frequently Asked Questions (FAQ) page, in the hopes it will help answer some of the more common questions.

Q: Should I borrow from my 401(k) or IRA to pay off debt?

A: This is a big mistake, and will be the most expensive money you ever remove from an account. The IRS calls this a Hardship withdrawal and has very tough restrictions on these types of withdrawals. You can also participate in a 401(k) loan that have to be paid back.

 Hardship Withdrawal:

 1. Tax Penalties: Depending on your tax bracket you will be hit with a very high and expensive tax penalty, that could be as much as 25% or more of your withdrawal.

2. Early Withdrawal Penalties: There is also a 10% early withdrawal penalty on top of the taxes owed.

3. Contributions Stop: After a hardship withdrawal you are not allow to make contributions for six months. This means you could lose out on employer matching during this time.

MONEY MINUTE
Quick Tips for Financial Freedom:

Change Your Relationship With Money: Decide RIGHT-NOW to make a MASSIVE change in how you think about money and how you use money. Decide right now to CONTROL YOUR MONEY INSTEAD OF IT CONTROLLING YOU. The first step is to schedule a FREE 30 Minute Financial Coaching session with me Paul Stryer. We will make a plan and you will work the plan to a new relationship with money.

Get a spot on my calendar by clicking this link.
https://whyliveindebt.com/freeconsult 

BOOK RECOMMENDATIONS
Breadcrumbs to Financial Freedom:

Give Breadcrumbs to Financial Freedom as a holiday gift and give the gift of financial freedom.

Breadcrumbs to Financial Freedom" is your go-to guide for getting out of debt, building real wealth, and finally achieving financial independence. If you've ever felt stressed or stuck when it comes to managing your money, this book will walk you through simple, practical steps and help you shift your mindset so you can take control of your finances and turn things around.

✅ Eliminate Debt: Learn proven strategies to pay off your debts and achieve financial freedom.
✅ Build Wealth: Discover how to grow your savings and investments for long-term financial security.
✅ Improve Money Management: Gain practical tips for budgeting, saving, and spending wisely.

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