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You strive to make your body a lean, mean fit machine right?
Well now its time to take the concept a step further if your finances are badly out of shape and in need of a makeover, use this 12-step program to lose the debt and create a lean, mean, financial machine.
1. Lose the weight.
The first thing you can do is shed unwanted financial baggage. Cut out any overspending. A good way to handle your spending is to write down every purchase you make for a month.
Account for every cent. A pattern will emerge and you will spot areas to forgo, or at least cut back on.
2. Pay off debt to lose the financial flab.
Look at all of your bills and loans and list all the accounts you owe. Stop charging now. You can take your largest amount now (The highest balance/Interest) and begin there.
You can also take the smallest amount and once paid off, put the extra cash to the next bill and so on. (The snowball effect) Soon enough this snowball effect will wipe out all of your debt.
3. Spend less than you make.
Doing this evens up the scales in your favor. If you can’t afford something now save up for it until you can or find something comparable you may already own. When you give yourself the edge of a cushion of cash, your financial journey is smoother.
4. Develop your core.
Set some goals for your money; identify what you need and what you want. Once you’ve established the difference between needs and wants, you will never put yourself in debt again I promise.
5. Pay yourself first.
Start an emergency fund. If you don’t have one already. Set aside a certain amount each month, before you pay your bills. Try to have a percentage taken out of your paycheck and automatically deposited into your savings account.
6. Make sure you are covered.
Get the proper coverage for your home, auto, health, and even life. If we prepare for the worst and hope for the best we will be protected in case the worst does happen.
7. Build some muscle.
Save for retirement
It’s never too late to save for retirement thanks to the magic of compounded interest.
8. Work on your credit score.
This 3-digit number assigned to your financial health is used increasingly to determine your creditworthiness. It can affect your mortgage that you apply for, the job you land, and the car your drive. The fastest and easiest way to build your score is to pay every bill on time. Do this for 6-months and your score will be pumped.
9. Use your debt to your advantage.
There is such thing as good debt. Your home for instance. You can deduct your mortgage insurance and other expenses on your taxes.
10. Bodybuilding.
To maintain your financial health keep on the healthy track. Continue saving, both in your retirement fund and your emergency fund. You may also want to save for college for the kids, or build other savings accounts for specialized goals, like a dream vacation or a second home. As your savings grow your sense of well being and peace of mind grows as well.
11. Look out for scams.
Get rich schemes can part you from your hard earned cash faster than flushing money down the toilet. Identity thieves may try to benefit from your high credit score or get a hold of your account information. You may be phished on your computer, where a false company sends you a legitimate looking Email. You click on it, and it asks for personal information in order to scam you. Watch out for these tricks and safeguard yourself.
12. Keep your financial plans up to date.
Make sure your retirement is on track and that you’re moving along with your goals. It may be worth it to hire a trusted financial advisor to guide you on your financial journey.
Remember.
When your finances are healthy, your life runs smoother. By taking advantage and following these 12-steps, you can be the picture of fiscal health.
Like this article?
Well now its time to take the concept a step further if your finances are badly out of shape and in need of a makeover, use this 12-step program to lose the debt and create a lean, mean, financial machine.
1. Lose the weight.
The first thing you can do is shed unwanted financial baggage. Cut out any overspending. A good way to handle your spending is to write down every purchase you make for a month.
Account for every cent. A pattern will emerge and you will spot areas to forgo, or at least cut back on.
2. Pay off debt to lose the financial flab.
Look at all of your bills and loans and list all the accounts you owe. Stop charging now. You can take your largest amount now (The highest balance/Interest) and begin there.
You can also take the smallest amount and once paid off, put the extra cash to the next bill and so on. (The snowball effect) Soon enough this snowball effect will wipe out all of your debt.
3. Spend less than you make.
Doing this evens up the scales in your favor. If you can’t afford something now save up for it until you can or find something comparable you may already own. When you give yourself the edge of a cushion of cash, your financial journey is smoother.
4. Develop your core.
Set some goals for your money; identify what you need and what you want. Once you’ve established the difference between needs and wants, you will never put yourself in debt again I promise.
5. Pay yourself first.
Start an emergency fund. If you don’t have one already. Set aside a certain amount each month, before you pay your bills. Try to have a percentage taken out of your paycheck and automatically deposited into your savings account.
6. Make sure you are covered.
Get the proper coverage for your home, auto, health, and even life. If we prepare for the worst and hope for the best we will be protected in case the worst does happen.
7. Build some muscle.
Save for retirement
It’s never too late to save for retirement thanks to the magic of compounded interest.
8. Work on your credit score.
This 3-digit number assigned to your financial health is used increasingly to determine your creditworthiness. It can affect your mortgage that you apply for, the job you land, and the car your drive. The fastest and easiest way to build your score is to pay every bill on time. Do this for 6-months and your score will be pumped.
9. Use your debt to your advantage.
There is such thing as good debt. Your home for instance. You can deduct your mortgage insurance and other expenses on your taxes.
10. Bodybuilding.
To maintain your financial health keep on the healthy track. Continue saving, both in your retirement fund and your emergency fund. You may also want to save for college for the kids, or build other savings accounts for specialized goals, like a dream vacation or a second home. As your savings grow your sense of well being and peace of mind grows as well.
11. Look out for scams.
Get rich schemes can part you from your hard earned cash faster than flushing money down the toilet. Identity thieves may try to benefit from your high credit score or get a hold of your account information. You may be phished on your computer, where a false company sends you a legitimate looking Email. You click on it, and it asks for personal information in order to scam you. Watch out for these tricks and safeguard yourself.
12. Keep your financial plans up to date.
Make sure your retirement is on track and that you’re moving along with your goals. It may be worth it to hire a trusted financial advisor to guide you on your financial journey.
Remember.
When your finances are healthy, your life runs smoother. By taking advantage and following these 12-steps, you can be the picture of fiscal health.
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