Ignoring the importance of personal finances and retirement savings can be detrimental. To get a handle on your financial future, it is essential to eliminate debt and acknowledge negative spending patterns. It’s one thing to spend freely if you are rolling in dough, but for the other 99 percent… it might be time to reevaluate. Do you have debt? Get it in check!
- Pay off all your credit cards. There are two trains of thought on this, but the method that seems to gain the most immediate satisfaction is by paying off the lowest balance first and then the next month applying that payment to the card with the next lowest balance. With the second method, pay as much as possible on the card with the highest interest, and pay the minimum amount due on everything else. This method will result in less paid out overall, but won’t offer the quick gratification of paying off an entire credit card quickly.
- Daily Worth offers wonderful tips emailed straight to you that will help you stay motivated and give you a new source of useful savings ideas.
- Refinance– one of the fastest ways you can cut your monthly payments and free up money to pay down other bills is to get a lower interest rate on your mortgage.
- Increase Income. While it is easy to want to pay off debt, it is hard to do if your monthly income is falling short. Brainstorm some ways to increase your take home pay.
- Get a part-time job: newspaper route, childcare, mystery shopping, retail.
- Have a ton of extra things taking up space? Sell them on Ebay, Craigslist, or have a yard sale.
- Check your credit score. Know where it is at, so you know what you need to do to make it better.
- Cut Expenses. You might be surprised at how quickly this can add up. Take a look at your budget and see where you money is going each month. Put the money you save toward paying off your debt.
- Do you really need the all-inclusive cable package?
- Eating out- If you’re spending $400 a month then cut that in half and put $200 of that toward paying down debt. If you want to be more aggressive and cut it out entirely, do it!
- How much do you spend on groceries? Is there a way to decrease that amount without sacrificing something you love? Shop the sales, use coupons, plan ahead.
- Gas- With the cost of fuel, the amount we spend on gas can quickly add up. Plan your outings and get your errands done along the way. You will save time and money.
Once you are debt free, start putting more money into saving for retirement. It might seem really far in the future, but you will be hurting if you don’t get started now. Make a plan, know how much you need, and how you are going to get there.
Do you have any financial savvy tips for lowering debt and saving for retirement? We’d love to hear them!
Here’s another way to organize your life… plan your meals: 52 Weeks of No-Repeat Meals.