What financial strategies are you using to kill debt & create wealth?

The number one thing on the table staring every employee in the face is to max out their deferred compensation contributions each year. This means contribute to your 401(k), or the military equivalent to the 401(k) the Thrift Savings Plan. Bottom line you can take up to $17,500 of your earned income and remove it from taxable income by contributing to these type of plans. Most folks will save at least a minimum of $4,200 each year in taxes (15 percent federal and 9 percent state, if applicable). The added bonus is your earnings on these plans are also tax deferred until you start drawing out money at age 59 1/2 or later (mandatory at age 70 1/2).

The second pillar is to consolidate debt. Get rid of credit card and auto debt ASAP. It's high rate and not even deductible on your tax return. Get a HELOC and pay off your debt with it. HELOC debt is deductible on schedule A and typically low interest.

Third, get on a budget and stick with it.

Finally, get with a reputable financial planner and have them help you with your financial retirement plan. Its never to early to do this. You have to know "how much" you need to pack away each month in order to meet your retirement goals. You also need to know what to invest in and how to diversify risk and meet investment objectives. Investing in high risk stuff without doing the math to diversify is not smart.

I'm finally at a point in life where the only debt I have is a mortgage. It took me quite a while to get here. Friends of mine have the goal of paying off the mortgage before retirement. I won't be there. I have attended Dave Ramsey's FPU, MAJ Steve Sheridan. I like his philosophy on money.

My building wealth strategy consists of savings, TSP, Army retirement (see savings), and an IRA. I would like to retire - for good - and be able to enjoy some years of good health, travel, etc.

I always wanted to go to the Dave Ramsey FPU classes they did at my last unit but they were always full. So now that I'm here in Kuwait I'm using the extra pay to put money in savings and pay off some of my smaller bills.

I am very persistent and good at killing debt; I refuse to live beyond my means and I don't have credit cards.  If I don't have the money, then I don't buy it.  Pretty simple really.

Kill debt: attack highest interest debts aggressively and pay them off as soon as possible.<div><br></div><div>Create wealth... Um... yeah... not doing too well on that one.</div>