Many financial experts will tell you to resolve to be debt free, make a budget that balances, and to save for all the big purchases/expenses in your life (a baby, house, car, retirement). But what if you only make $30,000 a year. You can’t possibly pay for basic living expenses, save for retirement, buy a car with $5,000 down, and save for that house…can you? If so, you need to call me immediately!
Finding balance in managing your money is going to be the key to meeting all of you financial goals. And that starts with acknowledging that we can’t always work towards 20 goals at once. Here are 3 ways to start achieving financial balance:
The Debt Detox
This is probably the most difficult stage of them all, but it’s necessary…do not acquire any more debt! What you will need to determine is how much you already owe already and decide how much you can put towards reducing that balance every month. If you’re like me and you hate to budget then use the 60% rule. Allot 20% of your income to debt repayment.
Build up your When it Rains, It Pours Fund
What I’m about to say is probably not a surprise to you…life can really suck sometimes! If you use the 60% budgeting rule, you have 40% of your income to manage however you wish. Try to dedicate 20% to savings (10% to regular savings and 10% for emergencies).
Dare to Dream
You might be looking for financial balance, but you won’t always be in this situation. Go ahead and think about the future and what the things you want out of life because it’s more likely to keep you motivated while paying off debt. If you want a house, start planning for it now! Think about home prices, taxes, and other expenses related to it like down payments, closing costs and inspection fees. Most importantly, dream big because that’s where success come from and you most certainly can do it!