I don't know where to start with my financesAug 01, 2023
I've been having numerous conversations in the DMs, and a recurring theme that keeps popping up is "I don't know where to start." This 6 word sentence is depilating and makes people feel hopeless and it doesn’t have to be this way.
Here are three easily implementable tips that you can start applying today.
1️⃣Firstly, take a closer look at your unique income and compare it to your total spending, not just your bills.
If you find that you're spending more than you earn, focus on trimming some of the excess expenses. On the other hand, if your spending surpasses your income due to high fixed expenses like rent, that’s more than 30% of your income, consider exploring different living options or actively negotiate a raise at work. If your high expenses are debt, then follow step 2.
2️⃣Secondly, don't ignore your debts any longer and stop treating them as if they’re going to magically go away by throwing money at them whenever it comes in. Take a few minuets right now and write this out:
Debt Name, Debt Total, Debt Interest, Debt Minimum monthly payment
Make a plan to pay off one debt at a time. You do this by finding extra money in your monthly INCOME and consistently paying off one debt each month while paying the minimum on the other debts.
3️⃣Lastly, consider opening a High Yield Savings Account and start contributing a small amount of money towards it each month, even if it's just $25.
By following these steps, you can take control of your financial situation step by step and start building a more secure and stable future for yourself. Remember, every small action counts, and it's never too late to start improving your financial health.
Got questions about...
Balance Transfer cards, Debt Repayment, How to save for XYZ
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