Achieving financial security isn’t typically something most younger students think about. Their parents, on the other hand, may be acutely aware of how important it is. Fortunately, for both students and their parents, the lessons and concepts taught in math can be helpful tools that can aid you on your journey to financial security.
Paying Off Debts
According to Business Insider, Americans have an average of nearly $52,000 of debt. That’s pretty substantial, and more than many make in an entire year. While tens of thousands of dollars of debt can be tough to overcome, with the right approach, it is certainly possible. Because most Americans seem to carry a variety of forms of debt, analyzing which one is the most important to pay off first can be immensely helpful. Look at both the overall debt and the associated interest rates and run calculations to figure out which ones will cost more over the longest time. Those are usually the ones you want to focus on paying down first.
Building Up Savings
Building up savings isn’t a viable way to build wealth, but it can help you become more financially secure. It’s especially important to have emergency savings set aside that you can use when needed. According to Derek Moneyberg, it’s better to have a savings account you can pull money from to pay for unexpected expenses than to dig into your investments for cash. Using basic math calculations, set a goal for how much you want to save up, when you want to have it saved by, and how much you’ll need to save each month to meet your goal.
Choosing What to Invest In
Investing is generally considered one of the best ways to build wealth these days. The challenge, according to The Nest, is that there are so many different ways to invest your money that it can be tough to figure out which methods are best for you. Math can help you calculate the initial upfront cost of the investment, any dividends or interest you might earn, and may even help you assess some of the risks you’d be taking on. Once you have all your calculations worked out, you can get a better feel for what might be a good investment for you.
Math can be an incredibly powerful tool when leveraged properly. It can help you pay off debts, build up savings, and make informed investment decisions. It’s not going to transform your financial situation and grant you financial security overnight, but it can help you identify the right path to take and move forward on it.
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