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Not Sure How to Set Up a Weekly Money Routine? Read This Now!

Not Sure How to Set Up a Weekly Money Routine? Read This Now!

Tired of all the chatter from friends, family and media about the importance of good financial habits? Ready to get your financial house in order, but wish you knew more about how to develop a plan of your own?

You’re in luck! Developing a weekly money routine is easier than it may sound. Get started with these easy tips. (Bonus! You can implement them all today.)

1. Think “routine,” not “resolution.”

Healthy financial habits are not about drafting more resolutions as likely to fail as anything else you promise each New Year. Instead they’re about building just that — habits. Start by shifting your thinking from an immediate push for a quick fix to debt or other financial woes, and focus instead on creating routines that allow you to strengthen your financial position every time you take out your wallet. Slow change can be lasting change.

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2. Learn The Secret.

Millions of people around the world are strong adherents to the Law of Attraction, which generally states that what you think about most is what you will attract. Instead of focusing on debt and the negative emotions that come with it — such as despair, hopelessness, frustration, impatience, or envy — focus with a positive attitude on your efforts to obtain, earn, or attract more money. Be proud of your efforts, and allow the process to keep you calm and centered as you work your way out of debt and into a better financial future.

3. Get real — with yourself.

How and why is money important to you? Is money, or lack thereof, keeping you in a job or living situation that you do not like or is not safe? Do you wish you had a romantic partner who earned more? While your first thought may be that you would party like a rockstar given the funding, for most folks, that simply is not part of the fantasy. Really think about what you want, and how much it costs. Do you want a private school education for your children? A safer neighborhood? The funds for a dog or other pets? Leisure to take two trips a year? Do you know how much each of these things costs? Do the research and write down your goal; make that goal as specific as possible.

4. Sketch it out.

Part of your candid assessment is how you spend. Do you buy coffee every morning at five bucks a pop? Do you get your nails done once a month? Do you tend to spend a lot of money when one of your friends has a birthday? Do you blow your budget in November and December on holiday temptations? Do you even have a budget?

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There is no wrong answer here, but you can’t change where you’re going until you know clearly where you are. Break out a pocket calendar, and sketch out how you spend. This does not have to be specific, but you want to think in enough detail to be able to identify trends. Is there a particular sport that when in season finds you buying drinks in bars more often to watch it? Do you avoid the summer heat or winter cold, and end up splurging on movies and other indoor entertainment? Is happy hour regularly expected by your boss or co-workers?

5. Trim your own fat.

Your money is yours, your priorities are yours, and your lifestyle choices are yours. Take a look at your spending sketch and question yourself about why you spend the way that you do. Do you really enjoy those happy hours, or do you need to stand up to your cubicle mates and only go once a month? Does your family expect, need, or want piles of gifts each holiday season, or do you buy them to alleviate the guilt of not visiting enough during the rest of the year?

Sometimes, the answer is as simple as, “I like that activity, that is part of my lifestyle, and it makes me happy/relaxes me/I enjoy it.” Great! Mark those items as important. You will likely find that you can trim the fat from things that you feel obligated to do, without having to sacrifice what you truly enjoy and want to spend your hard-earned funds pursuing.

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6. Measure your success.

Set a monetary goal for every week of the next three months, based on your calendar. Maybe it’s spending $10 less every time you go out; maybe it’s going out less; it could be finding the strength to avoid holiday sales; maybe it’s putting money aside from your paycheck immediately. Perhaps it’s all of those things, one for each week of the month. Be specific. Write each goal down. At the conclusion of each week, note your successes and areas that were more difficult. Be sure to note partial successes, too — if you saved $5 when your goal was $10, that’s still progress. At the conclusion of three months, evaluate your goals — are they consistently realistic? Can you be more ambitious?

7. Ask around, and share ideas.

Think you’re alone in your pursuit of wealth? Everyone is trying to accumulate more of the green stuff. Talk to your friends about your goals, and ask if they have any ideas for ways to save money. Pay particular attention to those who live in your area and have similar lifestyle patterns, because their tips and tricks are already proven.

Over time you will become more comfortable with your new weekly routine. Remember to revisit and update your goals frequently, and enjoy the abundance that comes your way.

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Ready to learn more about financial goal setting? Check out these 13 Basic Rules to Grow your Wealth Effectively.

Featured photo credit: www.seniorliving.org via flickr.com

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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