There are lots of ways in which you can improve your financial situation. You can do the “snowball” affect. Where you pay the lowest balance and then pay the next balance. The problem with any payment reduction program is if you don’t have the discipline or motivation you still have a problem. Before you think of getting another job to pay off your debt, there is a problem with that as well. We are working more just to make ends meet, while still using the very credit cards you were planning to pay off. Since the unemployment rate is so low, we should be living our best life.
Many of us are working like financial slaves because of the amount of debt we have accumulated. Did you know the average person about 3 credit cards with an average of debt of $16,000? The average person spent at least $920 on gifts for Christmas on those very credit cards. Parents and students will spend an average of $25,000 to 41,000 depending on if the college is in state or out of state. Now that I have your attention, let’s talk about what that means for 2020.
Make a decision to manage your money differently. Don’t really care if you do Dave Ramsey financial freedom or if you get to a financial planner to figure out how to pay yourself and your creditors. Maybe you connect with a counselor to discuss why you spend money that you don’t have to impress press people that have failed to invest in your future.
Financial responsibility has a foundation built on making educated decisions about where and how you spend money. There are those of us that have a poverty mentality regardless of how much or how little money they may have. Bottom line, it takes discipline and commitment to change the way we manage our money.
Step one: Get all your bills together and identify where you are spending your money.
Step two: Identify your non-negotiables. Food, transportation and medical must take priority.
Step three: Stop using your credit cards and start an emergency fund. Even if it is $25 a month in a savings account. It keeps you from using your credit card when you think you have an “emergency”. Getting your hair done or a new gadget does not constitute an emergency.
Step four: If you can’t do steps 1-3, then get a financial counselor who is willing to work with you and get you out of debt.
The ball is now in your court. Financial freedom can reduce stress and depression. Imagine how you will feel better when you don’t have the burden of financial burden on your shoulders.
It’s 2020, time to get financially fit.