December 1, 2015
Getting Out Of Debt ” See How” Part 2
Getting out of debt is hard, but It has been said that it’s not how much money you make, but what you keep. One person could make 30,000 a year and have more money then a person that makes 50,000 a year just by knowing financial principles. being accountable for you money is smart money management. know what is coming in and what is being spent.
In order to become financially fit we have to keep more than we spend. This is hard for many of us because there are always things we want to buy, I know that is true for me. It doesn’t mean we can’t buy anything It just means we have to delay gratification which means saving the money First. We will feel so much better knowing that we saved and paid with cash! Lets Break down the amount of money we need for our purchase and put some money in an envelope each time we get paid and before we know it we’ll have the money that we worked hard for saved to make our purchase.
It doesn’t matter if you come from a wealthy family or a family that does not have much extra money. By knowing and using these financial principles you can have financial success regardless of your background or education. I am learning financial principles later in life, I wish I would have known them earlier in my life. It will still help My husband and I in our retirement years and for him that is now first full retirement week. Yeah!!!!!! All of us can be debt free by practicing financial principles and setting goals plus having a clear budget and be discipline. I have read and been told if your goal is not on paper most likely you won’t achieve it. If your goal is on Paper and you read it every day it will help you to remain focused on the goal for financial fitness.
Establishing you Budget:
- List all your monthly bills and amounts, X’s 12 months
- List all year yearly expenses and amounts
- List quarterly expenses and amounts
- Add all 1. 2. 3. together
- Next divide the total amount by 52 weeks this will give you the amount each week you need for your weekly budget if you get paid weekly. If you get paid every other week divide the total by 26 weeks, if you get paid once a month divide by 12. You can choose to put the money for yearly and quarterly bills in a savings so it doesn’t get spent.
- place 10% in a savings every payday
- 10% for tithing
- Build up an emergency fund. Some will say at 1000.00 for emergency, some will say have at least six months of money set aside for an emergency.
- Next decide which debt you want to work on first Example: credit card, car payment, medical bill, the financial Fitness Book I read suggest to place 300.00 a month on one debt and work toward eliminating that debt then move on to the next.
- Pay only minimum amount on other debt.
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