Incomes Growing Faster than Debt in US
Would you like to be fiscally fit? No matter how old you are, these five tips offer a basic concept of good financial habits that will set you up for success. While budgeting your money and being self-disciplined can be difficult, it is essential for financial prosperity.
Automate Your Savings
To ensure that you can retire when you choose, you can choose to have your retirement savings taken out of your paycheck automatically. That’s what a 401(k) or an IRA does. The money gets taken out of your check before you have the opportunity to spend it on something else.
You can automate your savings in other ways too. For example, authorize a transfer of a few hundred bucks out of each check to go into a savings account. The earlier you start, the sooner you’ll have enough money put together to buy a car or put a down payment on a house.
Build an Emergency Fund
An emergency fund will cover expenses that would otherwise max out your credit card. You can use those resources for medical emergencies, car repairs, replacing broken appliances, and veterinary bills.
Financial experts say that at least three months’ worth of living expenses is an excellent target number for an emergency fund. Building up the emergency fund can be automated. Set aside about two percent of whatever you make, and then add one percent each month.
Avoid Living on Credit
Some benefits come from using credit cards. They allow you to shop safely online, collect points, earn miles, and get cash back on purchases. However, credit cards are not a good option to live on. Using your card each month to purchase gas, food, and other necessary items are dangerous. You could end up with a lot more debt than you can handle. On the other hand, if you pay off your balance monthly, you’ll build your credit. If you don’t have the cash to back up your credit purchases, you’ll end up owing more money than you can handle.
Spend the Rest on Living Life
You need to pay off your debt, save for retirement, and build an emergency fund. Keep checking your progress and adding money to your savings. However, don’t forget to live life. After you have the essentials taken care of, like rent and utilities, enjoy spending whatever is left over.
Save for Something You Want
To be fiscally fit, it is good to get into the habit of saving for something that you want, whether it’s an expensive handbag or your dream vacation. Keeping the money will motivate you, help you clarify your priorities, and build self-discipline. You do not have to live in a constant state of deprivation. One great idea to try is to put aside every five-dollar bill you have in your wallet at the end of the day, and add it to a “Dream Box.”
Getting into the habit of saving can be highly beneficial but seemingly impossible if you are already under great financial duress. Heather Benveniste with Benveniste Law Offices can look into your credit card debt and initiate negotiation with creditors to help settle your financial issues, thus allowing you to save for major life purchases. Contact us today at 1-800-497-5358 for a free case evaluation with an Illinois credit card debt settlement attorney.
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