Budgeting — It's a simple concept. Write down every
cent you expect to owe monthly and compare it to your monthly income.
Is there a surplus or a shortfall? If you have a shortfall, skip down
to our next topic, debt reduction. If you have a surplus, go back
through recent receipts and see where the money is going. What can
be cut back or eliminated? Write down exactly how you intend to spend
your paycheck, including necessities and extras. Be sure to add a
line to your budget for savings, even if it is a small amount. Then,
stick with it. Click
for more budgeting tips.
Debt Reduction — Here’s another way
to free up cash you can put towards savings. Hands off your credit
cards. For starters, stop making new charges. Then, list the amount
owed on each card and the card's interest rate. Begin by paying as
much as you can monthly to the highest-rate card and making minimum
payments on each of the other cards. Once one card is paid off, tackle
the one with the next highest interest rate, and so on. It will take
time, but you'll eventually need less to pay down cards and have more
to allocate for savings.
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