How to Budget, Save and Pay Off Debt
Many people’s new year’s resolution involves saving more money, but normally they don’t know where to begin.
Having heaps of debt and living paycheck by paycheck, can make it hard to stack some cash away. But that’s where we come in.
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1. Create a budget
The first step to saving money is to make a budget. List all your expenses for each month and determine where you can cut back.
Using a budgeting app like Mint or a spreadsheet can help you identify key spending areas and will ensure you stick to your set budget.
2. Pay off your debt
The second step is to plan how you are going to pay off any debt. Start with any loans that have a high interest rate and then determine what amount you can allocate towards monthly payments.
The sooner you pay off the debt, the faster you can start saving money for other necessities.
3. Use credit cards carefully
If you’re going to use a credit card, you need to use it wisely!
Use it to build up your credit rating, but make sure you pay off the minimum payment or total amount each month to avoid interest fees.
Don’t use cash you don’t have to buy things that you don’t need.
4. Start saving
Do you always tell yourself that you’ll start saving once you get a bit more money?
Well, stop making excuses and start saving now!
Even if it’s $10 a week, save it. You will be on the road to good financial planning.
5. Review your subscriptions
Without realizing it, we can end up wasting a lot of money on subscriptions.
Whether it’s a beauty box that we don’t really use or a magazine that we don’t read, there are ways to cut down spending by reducing your subscriptions.
6. Invest your money
Forget stocks and shares that come with the risk of losing you money, too.
Instead, focus on savings accounts, insurance schemes and real estate as ways to invest your money and watch it bring back a better return on investment.
7. Control impulse buying
Impulse buying is probably the largest money waster!
You see something, you like it, you buy it and then forget it even existed, or decide that you don’t actually like it a month later.
Instead of impulse buying, give yourself a week or two to think about purchases, if you then decide that you really like it and will get good use out of your product, then you can buy it.
So, there you have it! A few basic tips to help get your finances on the right track and start saving instead of spending.
Thanks for the info
BalasHapus