Continuing on my favorite tips for changing your financial future…
#6: Save $1000 before paying off debt. This will help keep you out of adding to your debt while you are trying to pay it off. Murphy’s Law will hunt you down when you’re getting out of debt and this will help keep him away.
#7: Use the debt snowball. Pay off the smallest debts first. This gives you quick wins and will keep you motivated. Besides, you’ll be paying it off so fast, that interest rate won’t matter. It’s more important to have fast wins as you are starting this process.
#8: Use Sinking Funds. These are one of my favorite things as they take something that will kill your budget (like vacation or Christmas) and break it down into bite size pieces.
#9: Save 3-6 months of expenses. Once your debt is paid off, you need to increase your emergency fund. Having this fund was a life saver for our family during covid. This will make a job loss situation or a family emergency not a financial disaster as well.
#10: Act your wage. In today’s society everyone is taking on debt to look like they are more than they are. This is sacrificing your future financial wellbeing to try to impress people today. Most of those people aren’t even noticing you! Stop keeping up with the Joneses.
#11: Stop using debt. Debt is dumb. Many people say that they use debt to make money. However, you’re risking your financial future in a game that you may lose. If it didn’t work in the bank’s favor, they wouldn’t still offer debt.
#12: Do not buy new cars. The average new car loses 20% of its value in the first year. A car that is 2-3 years old will be just as safe as a new car.
Do you need help with any of these areas? Connect with me, I’d love to help you.