Refinancing is when you pay off an existing loan with a new loan, ideally a loan that has better terms. Commit to making additional payments whenever you can (and maybe even think about building an extra payment into your budget). Credit card debt should be first on your list of debts to tackle, as the interest rates tend to be exceedingly high and these debts have a tendency to snowball. Prioritize which accounts you should pay off. With numbers this large, it’s important to prioritize paying off your debts sooner rather than later. These debts include mortgages, car loans, credit card debt, and student loans. Little cuts here and there can add up to big savings in the long run.Īccording to a recent CNBC study, the average American household with debt owes $155,622, or more than $15 trillion altogether. What subscription services can you cancel? Can you cut back on entertainment and dining out? Look for any and all places where you can sacrifice to make some changes. But what if you are spending more money then you are bringing in? If this is the case, look for places to cut your expenses. How does your incoming money match up with your outgoing? Are you bringing in more than you are spending? In that case, look to see where you can invest this extra money. Enter these in your spreadsheet in a separate column. This could include a side business, dividends, or rent that you collect. What is your take home income (post tax and post deductions)? Add in any extra income you may have. Then enter them on your spreadsheet as well.ĭetermine what your monthly income is. Looking at your past credit card bills or receipts can help you get an approximate gauge. Try to get an estimate for how much these categories cost you from month to month. They might include your groceries, electric bill, parking fees, dining out, entertainment, and home repairs. Variable expenses are your expenses that do change from month to month for a variety of reasons. Once you have located all of your fixed monthly expenses, log them in a spreadsheet. They will not change from month to month and can include your rent or mortgage, car payment, cable bill, trash collection, subscription services, internet, student loans, etc. So here is our quick and easy guide to creating a budget:įixed expenses are your expenses that do not change from month to month. Whatever your goal may be, whether it is to pay off debts, start a college fund, or save for a vacation, having a budget is the best way to achieve your financial goals. Creating and sticking to a budget is one of the most important things you can do for your financial well being. We say it all the time, but it always rings true. Here are 5 smart money moves you can make in 2022. There’s still time this year to get ahead on your finances and make 2022 your best financial year yet. With prices going through the roof and inflation creeping higher and higher every day, it’s never been more important to be smart with your money. If your goal was to save more money, we are here to help give you a little extra motivation. 2022 is well underway, and it’s time to check in on our resolutions and goals.
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