Similar to your fashion likes, you need to sustain your
money management skills with your lifestyle. The same
financial practices that got you through your 20s and
college is not going to work once you hit your 30s or
40s, or have a family...whichever comes first.
At this stage in your life you likely
have more money, as well as more responsibilities.
However, if you still utilize the same system you used
when you were younger, chances are that you have just as
much money as you did then...which may not be much!
Money management is 85% behavior. The first
thing you should do is pay the
minimums on your credit cards and put away $2,000 in a high
interest savings or
emergency situations. Try and do this as fast as you can;
hopefully in less than six months.
Next, we recommends paying off all of your
debts. The best practice is to eliminate your smallest debts
first. This will give you a sense of success. However, some
experts indicate that it is wiser to
eliminate credit card debts with the highest interest first,
then move to the proceeding highest. The order in which you
choose to eliminate your debts is up to you. Both techniques
Once your debts are eliminated, increase your
$2,000 emergency fund to three to six months' living costs and
expenses. And once you have that, begin putting a minimum of 10%
of your salary into a retirement plan -- particularly
if your company offers matching funds. It is not easy to
control finances to save for retirement. However, with a
little patience and structure, you will be able to accomplish
The next steps to consider include funding
your children's college and
down your mortgage. These are big steps and may never get
fully accomplished. However, taking initiative is the only way
to get ahead.
Learn what you can do to better prepare
dealing with money problems.
Avoid wasting money today!