I have learned the hard way when it comes to money that getting your finances under control is a major act of self-care. Paying off debt, having a budget and saving for a rainy day does wonders for your peace of mind.
Dave Ramsey has a simple 4 step plan that can help you get you on the right track managing your money.
1. Create a budget.
2. Get on a money management plan.
3. Set a firm financial foundation.
4. Invest and save for your future.
For step 2, he goes into detail with the 7 baby steps you need to take to pay off your debt, save money and plan for your future. Yes, baby steps to financial freedom, Bob (a What About Bob? movie reference).
My husband and I used his plan as the foundation for paying off our own debt, which consisted of student loans, car loans and credit card debt.
According to Bankrate, it is estimated that more than half of Americans have less than a three-month emergency fund. It is also estimated that more than half of Americans live paycheck to paycheck. Nearly 40% of people making more than $100,000 annually say that they live that way. These numbers reflect a huge portion of our population, which means many of us are struggling with the same issue.
As daunting as it may seem, even if you have to start small and save $25 per week, it is something. Even if it takes you awhile to pay off existing debt, it still has to be paid off, so keep at it. Work at it until you have the kind of financial security you need and deserve.
