Many Americans are in debt. Car loans, credit cards and student loans are the three most common criminals who are delayed in many family budgets. If you find yourself in this situation, you are not alone. Many American households currently earn wages without any restrictions. This amount of debt is unacceptable in the richest country in the world. Something must change as people continue to crawl into debt, and their children watch and learn from this bad behavior.
Good spending habits are easy to explain. Do not spend more money than you earn. This allows you to keep debt in fear and out of your life. Many people probably would not have owned a car if it hadn’t been such a process as a car loan. We taught ourselves that borrowing money is the only way to survive. When we discuss loans, many people say that they have no problem getting a few loans to finance their lifestyle. This is contrary to the idea of spending less than you earn. Just because you can gradually pay for the item along with interest does not mean that you can afford this product. You essentially rent an item from a lender, and you pay them for the risk of getting a loan. It makes them rich as long as you stay in debt.
People with good spending habits do not borrow money, they save what they earn, and then make decisions about writing checks for things that fit into their budget. This philosophy allows even the most modest earner to save on long-term retirement. Think about how much money you could save if you did not have loans to pay off the lender, even including your mortgage. Once you reach financial freedom, you can start saving on pensions very quickly, because part of your budget previously reserved for paying off a loan can now go to investment accounts, which helps you move forward.
Over the past 20 years, I have developed a simple but effective plan that eliminates debt in a six-step approach that allows you to use your spending habits and focus on eliminating debt. If followed correctly, you should be able to eliminate most of your debt, with the exception of your mortgage, within 30 months. This is not a very long time, given that the average car loan is more than 48 months.
Step 1 - Build a budget. It sounds simple, but many people did not sit down and built a budget to explain where every dollar they make is spent. In fact, if you asked a few people how much of their total monthly expenses, they would probably have to start by writing on paper. Every household must follow a strict budget that is transparent and enforced. I am sure that you have a budget. I also bet that your employer knows how much their monthly expenses are. This is due to the fact that they do not want to default on any payments, and your home should work the same way. Take 30 minutes and write a detailed budget.
Building your budget achieves three main goals. First, it allows you to see where you are spending money, making it easy to make the right financial decisions. Then it allows you and your spouse, if you have one, to be on the same page so that you understand each other. This is important, you and your partner should be financially united or none of the other steps will work. Finally, he accurately reports how much money you have left of the house. This information is very important to proceed to step 2.
Part of your budget also includes eliminating additional costs or at least stopping work. One that may be difficult for many is the elimination of contributions to retirement accounts. Do not worry; This is only a temporary situation. Once everything except your home loan is paid off, you will continue to contribute to your retirement accounts. This may seem risky, especially if you have only a small nesting egg, but on the whole, stopping these contributions allows you to throw more money into your debt, which ends the debt more quickly, so you can contribute to retirement later. If you previously contributed $ 300 to an IRA with debts of $ 30,000, after you pay off your debt, you can raise the IRA's contribution and maximize it.
There are many ways to allocate money in the monthly budget, which I will discuss later, but here are a few quick notes. Some are rarely on the 50, 30, 20 rule. This means allocating 50% of your budget to fixed payments, such as car and housing loans. 30% go to variable payments, such as electricity and groceries, and the last 20% go to savings and investments. This strategy is not consistent with the goals of each household, especially when trying to pay off debt, so I recommend that the numbers are not addressed until you pay off the debt, except for your mortgage. This allows you to set realistic expectations for a debt reduction timeline. Only after you have paid the entire debt, except for the mortgage, should you use any percentage rules.
Step 2a is to create a small start-up savings fund that is only for emergencies, such as a car failure or no work day, because you are sick. Different financial advisors recommend different standard amounts, but I believe that one fixed amount is unsafe for each situation, since some of them have more people in their home, which is more responsibility. The rooms that I recommend are $ 1,000 for single people, $ 1,500 for married children and children, and then $ 2,000 to marry with children. Again, this fund is only for unplanned events, and everything outside this small fund will have to come from a monthly budget. For many households, this may take several months, but stick to it, because it is important to create a financial buffer before step 3.
Step 2b should grow and expand your income, if possible. Services like Uber and Lyft allow people to earn extra money with minimal extra effort. You can also deliver pizza, walking dogs, mowing lawns or babysitters in your free time. No matter what you decide to do, math tells us that the more you generate income, the more you can attack your debt. Filling in your spare time with additional tasks simplifies the disconnection of cable television services and loses the bill in the amount of $ 150 per month.
Step 2c tells people that if any invoices are sent to a collection agency, you are responsible for settling these debts and contributing them to your step 3 if they do not pursue you and your credit rating. When calling these agencies, you should know exactly what you owe before any late fees. This will be your advantage when discussing winnings. I saw that the initial invoice for $ 400 exceeds $ 900 after additional fees were added. Collection agencies buy these accounts by default and try to collect everything they can to make a profit. If you give them $ 900, they will be delighted, but you would have wasted your money. Start a conversation by asking them for the best offer to pay the bill. They are likely to fall to what you initially should, but this is not their best offer. Please tell them that you do not have them, and offer them one quarter of what you owe them. They may or may not accept it, but simply realize that you can agree on a win. In addition, make sure that you request a signed letter indicating that the agreed amount will clear the debt before sending any money. If possible, send a remittance so that they do not have access to your bank accounts.
Step 3 is what many people call a debt snowball or sometimes an avalanche of debt. You take all the debts, put them in order from the lowest to the highest total amount of debt and pay them in this way. By completing this step, you pay only the minimum amount on other higher debts and throw all the extra money into your monthly budget for the least debt. I recommend this method, but I also want to save as much money as possible, so I throw a trick into this typical strategy. I also recommend mixing in the so-called staircase method. For any high interest loans, such as credit cards, payday loans, or something above 10%, I first pay them off with a maximum interest rate. This saves extra money because you avoid holding back high interest rates. If you let them stay just by paying the minimum, it could cost you hundreds of dollars. Take this example; you have a student loan of $ 25,000 with 3 percent income, a personal loan of $ 8,000 at 9%, a credit card loan of $ 9,300 at 28% and a loan for buying 6,000 dollars by 5%. The snowball method tells you to make a car, a personal loan, a credit card, and then a student loan. However, it will be very good. you will still pay a very high interest credit card, which will cost you more money, because your minimum payment probably does not cover the interest that is paid on the principal. I would recommend that you attack the highest interest in this situation, and then return to the snowball method. Remember; only attack high interest rates, usually credit cards and payday loans in this way, and then continue to use the snowball method. Thus, this example will allow you to first pay a credit card, and then a car, a personal loan and, finally, a student loan.
Remember that this step only works if you are all-in and completely committed to the exit. For some, it may be only 6 months, while others take 36 months to eliminate their debt. You cannot continue to use credit cards, eat at restaurants or purchase items, and not a monthly budget. Use the economical drive of step 2 sparingly. This is only for real emergencies, if you have the knowledge that you will need money in the future, this should be part of your monthly budget.
Step 4 - Complete the construction of your reserve fund. At this stage of your journey, you have paid for everything except for the house, so that you have much more available income to put off for a rainy day. Some financial advisors have a certain amount that feels comfortable consulting their clients, but I do base it on your overall situation. One person has more risk, because only one income relies on him, if the work leaves, then all their income also goes. Married people share risks, although not all jobs are stable, and some people have commission jobs that do not provide a steady income. Then there are people with children. In these scenarios, a household with children, but only one income, has some serious risks to assess. I usually tell clients to look for a period of 6 to 12 months. If you think you have a low risk ratio, you may have a reserve fund of about 6 months for your household expenses. This is if you are alone, your job is stable, your mortgage may have been paid, and you have mutual funds if you need to drink extra money. Not many people approach this workpiece, so just remember, if you have lost your job, you have to consider how long it will take to find another one. For many families, this can range from 12,000 to 24,000 dollars depending on your situation and lifestyle. This is not some big slush fund. Save what you need and proceed to the next step, because at the moment, if you have an emergency, you will have this fund and you must have retirement money through mutual funds.
Step 5 - Focus your money on your investments. Your investments for this step include your children, your home, and yourself, but not necessarily in that order. You can prioritize investments in any order you choose and restore your budget with interest. Before you begin, you must take into account several factors. The age of your children can drastically affect how you will invest in your college budget. If you have teenagers and no college funds, you’ll have to develop a strategy not only for a follower, but you’ll also have to include a school and a job option, because your investment will not be able to get more profit in this short time. If you have small children who are not in kindergarten, you may want to invest in a savings account for 529 plan or Coverdell. As always, explore your options and decide which one is best for your situation, and keep in mind that the federal government can change the investment rules and income limits for these investments annually. As a rule, if you have money, you may need a 529 plan, because you can deposit large amounts of cash depending on the plan and just leave it for growth. Coverdell's cover savings account currently permits payments of $ 2,000 per year, but if you invest so much for 10 years, you will still have a huge fund based on growth potential when loading into decent mutual funds. You should also consider the age you would like to retire. Again, this is about time and your situation. You can decide whether you want to work well in your 70s, when others may want to retire at the age of 50. If you start saving on retirement at the age of 20, your percentage of your retirement budget may be lower and more money may go to your child’s college. Your home is your biggest tangible investment you are likely to have. When imposing additional money on this loan, it is important to concentrate these funds on the principle. Here's how to do it faster. Consider this step when you fully fund your college budget and pay your mortgage.
As mentioned earlier, a financial advisor can advise different percentages based on your specific circumstances, but you need to understand that this is your money so that you can do whatever you want. I have several scenarios that can help you decide. If you did not save for college or retirement, you may need to structure your budget as 45% for mortgage, 20% for retirement, 15% for college, and 20% for other expenses. In this case, a household that brings home $ 77,000 a year after taxes is $ 34,650 a year for a mortgage, $ 15,400 for retirement, $ 11,550 for a college, and $ 15,400. US daily expenses, including escrow, but not mortgage. If this is too difficult, you can reduce the amount paid on a mortgage, but this scenario pays for a $ 300,000 mortgage in about 8 years. You can adjust interest by considering mortgages as related to daily expenses and retirement associated with college funds. To make changes, simply pull out of the connected fund to balance them. If you already have money in college and you cannot retire, you may be sending 45% for mortgage, 25% for retirement, 10% for college and 20% for daily expenses.
Step 6 - continue financing your retirement accounts and enjoy life. Doing this in this step is difficult, but since you did everything right, you deserve to enjoy the lifestyle you have created. At the moment, your budget may even have a 50% investment in retirement accounts. You may be over 50 years old, allowing you to make an even larger contribution to your 401K and individual retirement account (IRA) using backup collateral. Again, do your research because the federal government adjusts the income and contribution limit for these retirement plans.
Part of enjoying life can include traveling, giving, or a new hobby; this is normal. You now have the money to do everything that fits wisely into your budget. Вам не обязательно быть столь же ограничительным, как вы были в первых шагах, но не позволяйте этому быть оправданием, чтобы выйти из-под контроля. Продолжайте управлять своими деньгами с супругом и делиться своим опытом. Передайте свою историю как мотивацию для других и научите их, как управлять своими деньгами и устранить задолженность.
Некоторым людям необходимо начать прыжок, когда они начнут путешествие по устранению задолженности. Я собрал несколько советов, которые помогут вам быстрее ускорить финишную линию. Просто помните, что вы должны быть совершены, если хотите добиться успеха. По этой причине я призываю вас принять некоторые, если не все эти дополнительные идеи, потому что, в конце концов, они значительно сократят ваш долг.
Ваш счет за кабель превышает 100 долларов в месяц? Бьюсь об заклад, вы можете отказаться от кабельного телевидения не менее одного года и ничего не пропустить. Если $ 1200 в год не является достаточной мотивацией, я бы также сказал вам, что через месяц без кабеля вы заметите, что у вас и ваших детей гораздо больше свободного времени, чем вы поняли. Используйте свободное время, чтобы заработать дополнительные деньги, делая что-то еще. Если вам абсолютно необходимо развлечение, рассмотрите альтернативы, такие как Hulu, Netflix или Amazon Prime. Это очень дешево по сравнению с кабелем, и у вас все еще есть много хороших вариантов просмотра. Кроме того, не забудьте приобрести цифровую антенну для вашего телевизора. Если вы живете в населенном пункте, вы, вероятно, сможете бесплатно получить по меньшей мере несколько местных каналов.
У вас есть единица самообслуживания, которая стоит вам ежемесячно за то, что вы буквально забыли, что у вас все еще есть? У вашего гаража в вашем доме есть все в нем, кроме вашей машины? Если вы ответили «да» на эти вопросы, то вам, вероятно, нужно продать гараж. Люди будут платить вам за то, чтобы убрать вещи, которые вам не нужны. Как вы можете ошибиться? Если вы платите 50 долларов в месяц за свой блок памяти, вы сэкономите 600 долларов США в следующем году.
Если за последние 3-5 лет вы не занимались покупками для нового дома, арендатора или автострахования, вам может быть недостаток в экономии. Каждый год, когда ваша политика возвращается для возобновления, получите пару котировок от других поставщиков, чтобы убедиться, что цена, которую вы платите, по-прежнему является лучшим вариантом. Вы можете быть удивлены, потому что ваш перевозчик не обязательно просто собирается снизить вашу цену, даже если они снизили ставки. Вы должны быть активными, задавать вопрос и ходить по магазинам.
Если у вас есть контракт с мобильным телефоном с одним из основных операторов, таких как AT & T, Verizon и Sprint, вы можете покупать другие альтернативные носители, такие как Cricket, Straight Talk или даже телефон с предварительной оплатой. Я знаю, что это может показаться завышенным, но если у вас есть контракт, который вам стоит более 100 долларов в месяц на один телефон, поймите, что есть более дешевые планы, которые могут привести к тому, что ваш счет будет стоить около 50 долларов или меньше в месяц. Конечно, это не означает, что вы заплатите 300 долларов США за сбор, чтобы выйти из контракта, и только сэкономить 10 долларов в месяц. Вы должны убедиться, что если вы расторгнете свой контракт, сборы оправдывают возврат инвестиций.
Другой расход, который можно было бы отбросить, - это членство в спортзале. Если у вас есть время, чтобы пойти в тренажерный зал и тренировки, то у вас, вероятно, есть время для работы на второй работе и увеличения вашей заработной платы. Ваше здоровье очень важно, но это долгосрочная цель, так же как и выход на пенсию, которую вы можете временно приостановить, пока вы работаете с долгами. Попробуйте бег на улицу в парке или на YouTube и работайте с видеороликом у себя дома, оба из которых бесплатны. Если вы платите 30 долларов в месяц, вы просто сохранили 360 долларов за год.
Вы знаете кого-нибудь, кто останавливается в кафе каждое утро и бросает 10 долларов на кофе и еще 5 долларов на тесто? Это составляет 75 долларов в неделю или 300 долларов в месяц за утренний прием. Если важно, чтобы каждое утро было кофеином и сахаром, и для многих это возможно, я могу предложить вам приготовить его дома и сэкономить 3600 долларов в год. Еще один преступник, попадающий в ту же категорию, - это обычная процедура для обеда. Если вы бросаете еще один доллар каждый день на обед вместо того, чтобы приносить свои остатки, вы можете добавить еще 50 долларов в неделю и 200 долларов в месяц. Пожалуйста, не выбрасывайте еще 2400 долларов в год.
Перемещение вниз в автомобиле может быть другой идеей экономии денег, которая потенциально может спасти вас тысячи, но много раз математика не складывается. Если вы зарабатываете 40 000 долларов в год и имеете задолженность в размере 75 000 долларов США, платеж в размере 300 - 500 долларов США убивает вашу способность погасить задолженность. Еще больше расстраивает тот факт, что ваш автомобиль обесценился, так что теперь вы должны 18 000 долларов на автомобиль, который стоит всего 10 000 долларов. Теперь вы должны решить, имеет ли смысл двигаться в вашей ситуации. Если вы сэкономите до 3000 долларов, чтобы купить подержанный автомобиль и продать свой текущий автомобиль через частную продажу за 10 000 долларов США, вы технически торгуете долги в размере 18 000 долларов за долги в размере 8 000 долларов США, а это вам стоит 3 000 долларов. В конце концов, вы действительно только сэкономили 5000 долларов, так что вы должны решить, стоит ли это беспокоиться.
Последняя рекомендация может потребовать некоторой внешней помощи или, по крайней мере, партнера, чтобы помочь поделиться опытом. Однако я не курю сигареты; Я знаю, что это дорогая привычка. Если вы можете ударить его, вы можете сэкономить 30 долларов в неделю или 1440 долларов в год.
Начало вашего путешествия к финансовой свободе может подавить лучших из нас. Вы должны смотреть прямо на долг, даже в два-три раза больше годового дохода семьи. Не позволяйте этому побеждать вас, нападать на долг, как будто ваше финансовое будущее зависит от него, потому что оно на самом деле. Математика скажет нам, есть ли у вас больше денег, чем вы приходите, у вас будет дефицит, который может привести к использованию кредитной карты, чтобы заполнить пробел. Продавайте свой материал, работайте на дополнительных рабочих местах, делайте все возможное, чтобы избавиться от долгов. Иногда это исчезнет, и в этот момент вы выиграли. Вы перестали платить за свое прошлое и можете начать экономить свое будущее.
