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Start with an emergency fund
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- Set aside 3 to 6 months worth of
expenses, but no other savings until debts are eliminated.
- Try selling some items you no
longer need or working some overtime to help establish this fund.
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Tackle debt
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- Start with your smallest debt
and pay it off as quickly as possible.
- Add that payment to your next
highest debt and continue the process.
- Consider consolidating debts to
make things easier or reduce interest rates.
- Avoid creating new debts, such
as credit card balances that aren't paid off each month or loans for smaller
items like furniture or electronics.
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Set goals
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- Decide what you're trying to
achieve and by what date.
- Break your goal down into a
monthly amount that you'll need to save.
- Make sure your goals are
attainable.
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Take a look at your expenses
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- Write down everything you spend
for a month or two.
- Categorize it to get an idea of
where your money is going.
- See where you can eliminate
spending.
- Make sure your savings goal is
still achievable based on your income minus your expenses.
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Create a budget
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- Set limits for things that
fluctuate, such as groceries and clothing.
- Keep up with your spending as
you go to make sure you don't exceed these limits.
- Consider using cash to keep a
more realistic picture of how much money is left in each category.
- Try using a website or app to
help you keep track.
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Commit to saving
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- Find a savings account with a
good interest rate.
- Deposit your money in savings
first thing each month before you spend anything else.
- Consider a direct payroll
deposit or automatic transfer.
- Add any extra money you receive
to this savings account as well.
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