Are you tired of being buried in debt? To make your dreams a reality it is important you learn how to improve your financial situation. Following these 6 steps will help you begin to fund your dreams.
1. Pay Off All Debt
Every month it costs you. You can’t achieve financial independence if you’re overwhelmed by debt and interest payments. Credit card debt is the most serious since it tends to incur the highest interest rate.
2. Save 3-6 Months For Emergencies
Most financial experts recommend you have between three – six months of basic living expenses in your emergency fund. An emergency fund helps cover your basic living expenses during a time when your income has been reduced. The current COVID-19 pandemic has reminded us all that emergencies will happen and financial situations can change rapidly. The best way to survive these situations is by having a financial reserve.
3. Save For Your Children’s College
Education is a high value in our family, but the debt that results is a heavy burden for many. According to the Wall Street Journal, the average college graduate’s student loan debt is at a whopping $37,172. At this rate, college grads will be lucky to have their student loans paid off before their kids start college! If your children’s education is a value for you, start saving now.
4. Invest 15% of Your Income Towards Retirement
It’s important for you to start retirement-dreaming. Retirement may be as simple as beginning a new activity, starting a side hustle, or maybe just traveling. Living your retirement dream needs to begin now so you can prevent financial hardships in the future.
5. Pay Off Your House
Eliminating a house payment reduces monthly expenses obviously, but also, the interest savings are significant. Depending on its size and term, a home loan can cost thousands or even tens of thousands of dollars over the long haul. Paying off your mortgage early frees up that money for your future!
6. Find Causes That Impact Lives
Giving back is the key to success. Changing one life, a community or even a nation is the ultimate joy and satisfaction for living. Develop a plan to leave the world a better place!
While the above steps may not be easy, after assisting thousands of borrowers just like you, we have found these to be doable. Give us a chance to help you!