3 Personal Finance Tips To Help You Shed That Debt
Health is wealth and with these tools, you will be able to set yourself up for a prosperous and successful year full of financial wins!
1. Budgets Are Not The Enemy
When most people hear the word budget, they get scared and think all of their fun has to go away. Having a budget is a great way to reach your goals in a strategic way.
Instead of spending as expenses come in, have a plan of how much money you are setting aside and stick to that budget. Having a budget may mean saying no to a new pair of shoes now, but it also means saying yes to that trip to Africa you’ve been wanting to take. Here’s a way to break down your budget based on your income:
- Use 50 percent of your income for necessities like food, rent/mortgage, utilities, and transportation.
- Use 20 percent of your income for an emergency fund so you won’t have to pull from your savings when unexpected expenses come up.
- Use 30 percent of your income for the non-essentials like entertainment, shopping, and vacation
2. Saving Is Not Enough
Ok, so you’ve got your budget down and your spending under control. That means your all set right? Nope! Spending less doesn’t automatically mean that you will have more money. Saving your money is a great way to start getting your finances in order but investing is the way to really build wealth.
3. Clean Up Your Credit
Now that your budget is in order and you’re focused on making smart investments, it’s time to move on to one of biggest handicaps to financial health, credit card debt.
While it may seem almost impossible to get rid of, starting with the most expensive debt is a great way to make a dent in your debt. Look through your interest rates from highest to lowest and deal with the one with the highest interest rate. Working to build your credit will help your overall financial health and set you up to make more impactful and long lasting investments.
There is no better machine to help you get financially fit than The Black Business School. Get help with the above three tips and also learn other ways to build your business and overall financial knowledge!