We
have written a lot about organizing and planning your finances.
Now that we have started a new year, make this a reason to
start a budgeting plan and stick to it. Start with the most
important, which is building a sound budget, and work your
way into a regular savings plan. But first, in order to build
a sound budget, you need low-debt. So, these are our suggestions:
Write out a plan to pay off credit cards.
Credit cards are the biggest culprits because;
1) the interest rate on some cards is extensive, 2) there
is a tendency to charge more than you pay-off monthly,
3) paying the minimum monthly payment can extend your payment
so far that you end up paying three times as much for your
merchandise, than the original price.
Write out a plan to reduce all of your debt,
and continue to live debt-free;
1) Create a budget
2) Create a plan to stick to your budget
Plan to fully fund your retirement account
at work;
1) Acquire a booklet from your human resources department
pertaining to your retirement plan.
2) Understand the investments offered in your retirement
plan, whether it is a mutual funds, stocks, or bonds.
Understand the basics of investing and building a sound
savings plan.
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal finance
book, Let's Get Financial Savvy! ISBN #0971979502.
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