Being an adult is not about the number of candles on your birthday cake, but the numbers in your account and how you handle your budget. Pending student loans, mortgages, impulse shopping and credit card overdrafts can quickly add up to create stress.
The only way to escape from this prison is to make a commitment to yourself to regain control of your life. It will be almost as hard as losing weight and require an equivalent level of self-control and dedication. Here are five ideas to help you get started and stay on track.
1. Be mindful of your money
Treat money as the limited resource it is and don’t be afraid to draft a budget and spending plans. Think about your money as the capital of a company. You would be appalled by a CEO who doesn’t plan their investments or just spends on random items. So, why are you taking this approach towards your wallet? Aim to keep a weekly check-up session. To make sure it doesn’t turn into a chore, create pleasant associations. Make a ritual out of taking care of your budget. Try a “financial pampering” session when you light some candles, put on some wine and music and welcome abundance into your life by doing the math on your bills.
2. Broaden your financial education
A well-known billionaires’ habit is that they learn and read a lot. If you want to at least get out of debt, it’s a good idea to put yourself into billionaire mindset and get ready to learn more about how money works. You could start with some of the recommended readings.
Make a list of all the things you don’t understand yet. Read at least one article about each and make notes. Try to compare different approaches or tools.
3. Eliminate drawbacks
Once you understand more about finance try to cross the chasm from theory to practice and identify the items that are holding you back. Are you overspending? Are you missing payment deadlines and getting your debts on your credit report?
Make sure you check your FICO score report from all three bureaus and understand what your most significant problems are so far. Create a hierarchical list. If you are looking to repair your credit, you should also consider enlisting the help of dedicated specialists. Choose from a hand-picked selection: https://creditrepaircompanies.com/reviews/.
4. Make your credit cards work for you
The previous steps might have pinpointed to credit cards as the root of all evil on your credit score. It’s time you turn that around and make your enemies, your friends. Your payment history (including bills, mortgage, and cards) gives 35% of your FICO score. That’s why if you really want to see some fast changes you don’t have to freeze your credit cards but play it smart, maybe get some bonuses along the way too.
Automate some payments and make sure the amounts don’t overdraft your card and that you always make at least the minimum payment before the due date. This trick makes you look a lot more responsible with your money.
5. Plan for the future
Make the leap from looking responsible to actually being. It’s time to take some time and plan the silver days. First, understand your options, whether it’s a 401(k) or an IRA, either simple or ROTH. If you are married, include your spouse in this planning. Depending on your income and other factors, you could save both for old age and set aside some money for your next holiday at the same time. Retirement planning could be intimidating. The good news is that as soon as you are aware of your questions, you can find excellent solutions.