Do you have a handle on your finances?
If not, you join the millions of those who want to improve their money situation. If you’re serious about tackling your debt, then you should be asking yourself questions that will clarify your goals and focus on areas where you can make it better.
After you’ve taken a good look at where you are and where you ultimately want to be, you’ll know exactly what you need to do next.
Finances are a big part of our lives and making sure it remains a healthy part helps on your journey of self-improvement.
#1: Do you know the difference between needs and wants?
Now, you may think you need the NFL Network and enough funds to feed your Chipotle cravings at least three times a week, but these aren’t needs. They’re wants and cutting back on them can help you save money. Try this: Write out a list of your wants and apply what you spend on them per month and instead, apply them to your debt. This will give you a clearer idea of how much you’re really spending on your wants vs. your needs and how easily you can shift your spending to start paying down that debt.
#2: Are you paying your credit card payment minimums?
If you answered yes, that’s good, but not good enough. It’s definitely not enough to pull you out of debt. Did you know that even without adding charges to your credit card bill every month, the interest rate may first take half of your payment with the rest then being applied towards your actual balance? Always try to pay your balance in full every month and definitely on time, so that you don’t get killed by late fees.
#3: Do you dread tax time?
As we get further into our careers, owing higher taxes is inevitable. You may find that you owe a good chunk of change come April and be stressing over how you’re going to pay it. Handling taxes can be a complicated ordeal. That’s why there are professionals we can call on to help resolve tax issues for us. Get ahead of the problem and connect to the resources available to get you started knocking out your debt.
#4: Do you want to have financial freedom?
Isn’t that what everyone wants? Wouldn’t it be great to not have to stress about money? Cut into your debt a little bit at a time. You’ll be surprised how great it feels once you get started. Just like your workout routine or any lifestyle change, it takes discipline and hard work. But in the end you’ll feel stronger and more confident.
Getting rid of debt isn’t something that’s going to happen overnight, but taking responsibility for yourself and tackling the financial matters that have affected you for so long is a big step in the right direction. You have the tools at your disposal, all you need is the will to complete the challenge. Soon it will become habit and change you into the best man you can be.