Knowing Pythagorean Theorem
Doesn’t Help Figure Out Your Budget or File Your Taxes.
So Let’s Get You Started on Becoming the Boss of Your Money.
Follow these steps to better money management.
Create a plan for eliminating your debt.
Step 1.1: Stop Living PayCheck to Paycheck
Living paycheck to paycheck is not only stressful, but makes it very difficult to make any progress on your financial goals. This guide will help you take the necessary steps to escape the negative cycle where you’re counting down the days until your next paycheck.
Step 1.2: Learn to Budget
Have you created a budget and checked it twice? Is your budget not working out? A budget isn’t a punishment, it’s a tool and resource to help you see how you are delegating your funds (because remember, you’re the boss). Check out the following resources to help you master this step.
Step 1.3: Build up Some Savings
Since it makes no sense to go charging forward, all in, on your debt attack plan without first having an emergency fund, and possibliy some sinking funds, you will need to figure out how build up your savings account.
Step 2.1: Create a Debt Attack Plan
Next, you need to decide how you will attack your debt, by prioritizing your debt.
If you have student loans, find out how much you owe and educate yourself on your options.
If you have federal loans there are tons of different repayment plans, including ones with with loan forgiveness available.
If you’re feeling a little apathetic about your debt, get motivated by calculating your daily interest rate.
Step 2.2: Actually Start Paying Off Your Debt
There are so many simple things you can do to make paying off debt easier and to pay off debt faster. You can split payments, use apps to pay off debt, or just set up automatic payments. Just make sure to avoid common mistakes that may end up costing you.