Money is a common problem, right? There are so many problems related to money, it’s not even funny. How do you make sure there’s enough money to go around? What do you do about student loans and credit card debt? How do you secure your money? How do you make sure you’ll have enough money saved for retirement? There are so many questions and problems surrounding money.
Did you know good financial planning and living on a budget can solve nearly all of your money problems? Your first reaction might be, “No way! I’ll never live on a budget! If I do that, I’ll never be able to have fun.” However, that’s not the case. Living on a budget can actually be very freeing and allow you to have more fun in the end. Planning a budget with a good financial planner can help you reduce and eliminate your debts, save and invest your money wisely, and ensure that you have plenty of money now and in retirement.
Here are some steps to turning your money problems into answers:
- Keep track of everything you spend for 30 days. Every. Single. Penny. Then, figure out which purchases are necessities and which purchases are “extra” and could be done without. You may have to do without some of the extras each month in order to become financially free.
- Create a budget. Now that you know your necessary purchases, you have the data you need for an effective budget. Create that budget, and stick to it!
- Assess your debts – Determine how much debt you owe. Now, don’t just pay the minimum payments on your debt. Start paying those loans off! Use the money that you determined was being spent on “extra” unnecessary purchases. Start by paying off the smallest debts first. Once one debt is paid, add the money you were putting toward each month to start paying extra on your next biggest debt. Do this until all of your debts have been paid. If you have to, get a second job to pay off your debt faster. It’s so worth it!
In the end, with good financial planning and budgeting, money is not a problem. It becomes tool, and once you know how to use it, it is a very effective tool in your life.