One of the best ways to get started when attempting to achieve a new financial goal is to make sure to have a good working knowkedge of where your money is going.
If you have never been a bank book balancer try using a computer program or app on your mobile device that will help you keep track of purchases. This is tedious yes, however it does make you think. You think about the purchase you are making and if you can afford it in general. This leads to less money just leaving your wallet impulsively. Much like thinks about the calories in a meal, you stop and think (refer to my post about taking a moment and counting to 10 before purchasing).
I make a chart of bills I want to pay off. I pay what I can tiwards each bill and make an effort to pay one or two more aggressively than the others. The less you owe to others the easier it is to have more cash on hand to use for play and enjoyment and the quicker your credit score will sore. There are free templates all over the internet or make your own.
Try it-
Bills:
Visa credit card $1,546
Store card $3,509
Car payment $245
Car insurance $95
Mortgage $750
Total owing- $6145
Now how to make the balances become less? Here are a few ideas:
1.) Find out about refinancing your car and/or mortgage. Even 2-3% can save you hundreds even thousands on those types of loans.
2.) Shop around for car insurance. Sticking with 1 company is great, however they may not be giving you all the credits you deserve.
3.) Focus on those credit card bills pay over as often as possible. Take the one that is the lesser amount of the 2 and start adding $20-$30 extra in payments a month. The balance will be dramatically decreased by 6 payments and once your minimum payment for that one has dropped move onto the one with a higher balance. Still make sure to pay a little over on the one that now has a balance that is nearly paid off as this will help your credit score immensely.
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