22 Feb 2009

Pay off debt and saving money

Pay off debt and saving money are two things that are diametrically opposed but not impossible to combine them. There are several ways you can do to begin to pay off debt and saving.Quite puzzling indeed start whichever is first pay off debt or saving money. You can start to pay off earlier debts both credit card debt or bill sharing.

Once you 'clean' from the debts that start saving. These savings could be used to anticipate emergencies. Later you also should think about investing, but first know how much property owned and how much expenditure is spent.

Tracking Spending

The first step you should do is make a list of financial records all income and expenditure. This list can you use for one month and make a continued menarus up to one year to be able to control finances. After that you can compare between the total revenue by total expenditure. Ideally the amount of income is greater than the total spending.

Step 1:

Make a personal financial balance sheet that records all your debt from the start the biggest to the smallest

Step 2:

If there is, add the intangible property that you own, such as savings or other investments.

Step 3:

Add all the requirements you need in a single month. Then subtract the amount of your property with total spending for goods and see how much money there to pay the debt.

How to Build Savings
  • Go to the bank and ask about your savings if you need to ask for the print data about your money. So you know what cuts imposed by the bank for your savings.
  • If you have savings of more than one, put a label on the savings. Categorize them according to needs, such as "daily needs", "unexpected funds", "savings" or "investment".
  • Make sure any record of your payment type on the financial list has been created. With so avoid double payment and the efflux of money on useless.
  • If you can get a list of the balance between income and expenditure each month, then add in the expenditure of funds for unexpected costs.

How to Reduce Debt
  • It is very easy is to stop using your credit card.
  • Pay credit card bills of the most massive and avoid "minimum balance trap." Fitting time to pay so that no additional interest.
  • Turn off the credit card that had long and never used again. Bring your credit card when you really want to buy a necessity, if not stay home.


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