Step 1.5
Set milestones and goals. One of the best ways to stay motivated is to channel your will power and COMMIT. Whether your goal is traveling, purchasing a home or going to a fancy dinner the restraint is worth it. Trust me.
Example: I’d like to save $1500 in 3 months. That means, $500 p/month and $150 p/week. Is it feasible for you? Be flexible in your plan, not your goals.
Example 2: I have 3 credit cards with a total balance of $4000.00
Amount Owed Credit card 1: $500
Amount Owed Credit card 2: $1500
Amount Owed Credit card 3: $2000
There are two ways to tackle this debt.
1. Make minimum payments on the larger debt and pay off the smaller debt first.
2. Pay off the one with the highest interest rate first.
Once one bill is paid off add those funds to the next. This will help you pay it off faster.
Setting goals is a good way to keep you on track and in budget.
1. List off all of your debt.
2. Prioritize (mortgage/car/insurance/groceries, etc.)
3. Set up automatic savings. Start with something you can manage, if it’s $20 a week, that’s $80 a month and $960 a year. Seems small, but it makes a difference once you’re knocking out debt and are able to add more into your savings account.
It’s important you know your limits and learn to adjust to stay motivated.
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