Have a Plan to Reduce Debt and Build Wealth
Nothing can be accomplished without a plan. How often do we hear this statement? This statement holds a lot of truth in regard to debt reduction and wealth building. I want to help you achieve your goal by helping you set up a plan or at least get you thinking in the right direction regarding your finances.
First, an easy place to start is to create a “simple” plan that is achievable and easy to execute.
Second, look at your monthly income and determine how much you can afford every month to pay down your debt. Start with highest interest rate cards first.
Third, review your expenses to determine where your money goes every month. This can be easily accomplished with a spread sheet – or if you are like me, on a sheet of paper.
Fourth, determine whether you can you afford to set aside a couple hundred dollars a month into a savings account. This is sometimes easier to do if you have your employer automatically deposit the money into a separate account before you cash your check or you receive the funds through EFT. T his will help trick your brain into only spending the money you have deposited into your checking account. I have found it is just normal human nature to spend whatever money is readily available.
Paying down month credit cards and building an emergency fund is the foundation of a solid household budget. These simple ideas will help you develop your plan. Your next step is executing this plan!