We’ve all heard it - spend less than you earn, live debt free. But, how?
Years ago this question always befuddled me. As I was barraged with financial experts who had great ideas that mostly involved some form of credit, or investing money I didn’t have to spare. Saving money was a short mention and why worry when you can borrow your way out of any situation or into the latest greatest vacation, home, car, or whatever else you fancy?
Well here’s some practical advice for those of us who are tired of living check to check and in debt:
#1 Make a Decision
Decide to change the way you handle your money. Get rid of your credit cards, do not obtain any new debt and put your spending on paper - thus…..
#2 Budget - Yes - Just Do It!!
Develop a realistic budget – Each pay write down every single cent you plan to spend - from your weekly hair cut to your monthly bills. This is where the rubber meets the road. Don’t get discouraged by what you see, if you keep at it the outlook will get better.
#3 Save for Emergencies
It is important to begin to save at least $1,000 for the unexpected. Start slow; add all the extra that you can to this fund.
#4 Get Out of Debt
Once you have your initial emergency fund, begin to pay extra on your debts to eliminate them. List them smallest to largest and knock them out one by one. Give yourself a small reward after each one.. key word..'small'..think movies..not macy's.
Remember it’s not the amount of money you have, but the way you manage it!
-Dorethia
...livin' life on purpose
2 comments:
Girl,
I am so completely pleased to see someone post information concerning something that is important to me, and those whom I meet or deal with on a daily basis.
Let's keep it real: money, budgeting, or anything remotely dealing with finance is a subject that most people talk about, but refuse to walk about it (do it).
So I say to you, "Let's pump some blood into the veins of reality and began to live life money wise and not check to check."
I love it! It's always good to read up on good tips that could help others achieve success!
---Frank
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