In this post, I am trying to give a suitable response to mail I received from a reader named Shivangi. A part of her mail is given below:
- First of all, you need to recognize the high interest loans (credit cards, personal loans).
- Get rid of them as soon as possible.
- Now pay off loans taken to buy liabilities (cars, gadgets) which do not produce a stream of cash.
- Initiate creation of an Emergency Fund which takes care of unforeseen money requirements.
- Now if you have any long term, low cost loans (property loan) running, you can think of investing simultaneously as you go on paying off that loan.