Financial Rescue | Debt Settlement
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Last updated 6 days ago
1. No emergency fund. 2. Not saving while you spend. 3. Not using a debt payoff method. 4. Keeping high-interest rates. 5. No budgeting. 6. Budgeting but irregularly. 7. Not putting extra money towards debt. 8. 0% interest makes you think you're not in debt.
Reviewing your insurance regularly helps ensure your coverage is what you expect it to be in the unfortunate circumstance that you need to file a claim. It also aids in making informed decisions regarding coverage and being proactive about minimizing your insurance costs.
Congratulations, you're now debt-free! What's next? 1. Get serious about getting an emergency fund. It'll help you to prevent future debts. 2. Save extra money for a major purchase like house, car or education. There is always something you've dreamt of to buy but couldn't. Now it's the best time! 3. Start saving for retirement - no matter how old you are. Earlier you'll start more you'll save.
Spend money to grow in your career by going to conferences, taking courses, reading books, or something else specific to your job. It may feel like you don’t want to spend the money on something like this, but if it pushes you outside your comfort zone and causes you to advance in your career, it’s usually worth the money.
At the beginning of the month, make a plan for how you will spend your money that month. Write what you think you will earn and spend. Write down what you spend, and at the end of the month, see if you spent what you planned. Use the information to help you plan the next month's budget.
Write down all your debt
Your budget and net worth might give you some insight but it's better to write down all your current debt separately. Not only the total amounts but interest rates, amount of the minimum payments, loan length, etc. So you organize what should be paid first.
Spending your money wisely isn't just about avoiding unnecessary purchases – it also requires you to take the money that you save and put it towards things that will help you reach your financial goals. Remember that price and value are not always the same.
Setting a goal and developing a plan to achieve those goals go hand-in-hand. Part of your plan may include specific and measurable targets to work toward. For example, one specific goal may be to save an extra $300 over the next six months to put into an emergency fund.