Debt is something that almost everyone has, but among those people very few know how to get started to get rid of it. What are some things you can do today to help you get ahead of your finances? Continue reading below!
First things first is to calculate your monthly income as well as the costs that you delegate towards bills. The easiest way to organize your finances is to divide them into these categories: Food, Utilities, Transportation, Rent/Mortgage, Debt Payments, etc. Once you’re able to see the difference between the money you have coming in on a monthly basis versus your financial responsibility it would be much easier to set a budget for yourself.
When looking at your finances always be sure to prioritize your bills. For instance your priority list might look like something along the lines of: House, Utilities, food. The first being the most important, and the financial responsibility that must be paid. Don’t be intimidated by bill collectors who make it seem that their bill is a higher responsibility than your key bills.
It is important to prioritize your debt as well! Starting with the most realistic debt that seems reasonable for you to pay on a monthly basis as well as keeping up with your monthly bills and maintaining your budget. You can also achieve getting ahead of your debt by cutting out, or down the expenses that aren’t as necessary as other bills you may have.
Lastly, when creating your budget be mindful of also building an emergency fund should any unexpected expenses pop up. Although people tend to want to put away as much as possible, keep in mind that this isn’t to be used as a savings account but more so as a crutch that will help any blow that life can throw at you financially. Even if it is as little as $20 per pay period, anything helps!