Follow These 3 Tips For Financial Planning Success

Are you drowning in debt? Living paycheck to paycheck? Perhaps you spend each month wondering where you will get the money to pay all your bills? If this describes you, you are certainly not alone. The sad truth is that many Americans live exactly the same way. Financial problems are a huge source of stress in this country, as well as one of the primary reasons that married couples get divorced. The good news is that it is never too late to turn your financial situation around! And no, we don’t mean by winning the lottery or landing that recording contract. With diligent financial planning, you can get your finances in order, even if you are living on a meager income. Read below for three tips on how to do just that.

Eliminate Debt

One of the greatest financial hindrances most Americans face is crushing debt. It can ruin your credit score, it can make it nearly impossible to pay your monthly bills and it can prevent you from enjoying your life. The good news is that there are some steps that you can take to reduce your debt right now.

First, you should start making payments on your debt right way – even if you truly cannot afford to make the minimum payments on your debts. The best thing you can do is to at least pay something every month. Many people go months without paying anything on their debt which, as a result, makes their interest that much higher and their overall repayment amount that much larger. As a result, you will find yourself in even more debt for a longer period of time.

Speaking of interest, another tip to help you eliminate debt is to pay off your debts with the highest interest first. Paying off these debts off sooner means less money that you have to repay in the long run and will help you gain some additional income when the time comes to you pay your bills with lower interest rates.

Finally, consider picking up a part time job, or doing side work. Then, devote all of this additional income to paying off your debt. Before you know it, your debt load will decrease and you will soon have more income at your disposal for more enjoyable activities.

Start Saving

After getting out of debt (woo hoo!) the next step is to actually start saving your money. When you have money saved up, you will eliminate the need to accrue debt in the future, which can take the shape of car repairs, hospital visits, or those new braces your child needs.

Additionally, regardless of your debt situation, there are ways to save now that will help lower your current tax burden while paying dividends down the road. For example, setting up a college savings plan for your child early or contributing to your retirement savings fund is essential early on in your career. Over time, the money you save for these purposes can multiply upon itself, resulting in greater financial freedom in the future.

The true trick to saving lies in your ability to look at the big picture. Once you can see the forest through the trees you can be able to identify a savings plan that is right for you.

The general rule of thumb is to put away 10 percent of your income. But if that’s too much at first, make a habit of at least putting something aside in a savings account every paycheck. A few dollars here and there can start to add up more quickly than you expect, especially when you have interest working for you, instead of against you!

Hire A Financial Planner

Nearly every city and town in the U.S. has financial planning firms that can help you out. Whether you are looking for Dublin wealth management, or wealth management in Florida, there are firms that can assist you in meeting your financial goals. Financial planners can provide advice on getting out of debt, put your money in the right savings accounts, and identify day-to-day steps that you can take to achieve financial success. This is certainly a worthwhile investment! You may also find success using one of the many financial calculators that are out there. These will help you determine the best strategy for your money while giving you that big picture you need to get ahead.

Happy saving!