- Develop a plan – These days putting a plan together on paper often means using a financial app or online service to manage your spending and accounts. Rarely, do people sit down and actually develop an outlined budget and stick to it. Without a firm plan in place, your financial journey is likely to be derailed at the first inconvenient or barrier along the way. Find an app or use your online banking app to set custom spending alerts and set goals for saving and more.
- Boost your savings – It can be difficult to think about saving when you are struggling to pay your bills as it is. However, saving money has its own purpose in your money management portfolio that should not be modified based on other elements. The best way to ensure you don’t cheat yourself out of your savings is to create automatic transfers from your checking to your savings following payday. This ensure you are consistently saving, even the smallest amount, each month towards a larger goal. Try to avoid using your savings at all costs for anything other than planned purchases or emergency repairs. Avoid using your savings to cover credit card or debt payments.
- Pay more than minimum – The best way to manage your debts is to pay them off as quickly as possible. Rather than paying the minimum payment every month, set a desired amount above the minimum and pay that each month. Paying more than the minimum will help you pay down the balance by capturing your balance plus the monthly interest. Be sure your payments are well above the interest you are accruing each month so you don’t spin your wheels making payments that do not lower the balance.
- Make adjustments – One of the most important, and often forgot about, aspects of financial planning is making adjustments based on performance. If a part of your financial plan isn’t working for you; maybe you are saving too much and not paying down credit card balances enough – or vice versa- evaluate the plan and make a thoughtful choice to make an adjustment to the plan. Live with your adjustments for a few months to see if they are working for you or against you.
If you are experiencing financial hardship, facing eviction or foreclosure, or are concerned about your ability to pay your debt, contact our Rio Grande bankruptcy attorney office today. We can help you make the right choice for you and your family.