Once I started truly having to pay my own way in life, I started getting serious about my money and paying my bills on time. Unfortunately, the damage I had done to my credit and my debt situation was not quickly solvable. Granted, I've never been an extravagant person, so I didn't have tens of thousands of dollars in debt, but it was still much more than I was comfortable with. I am SURE I'm not the only person to find themselves in this situation.
I thought I would share a couple of little tricks that I have found along the way that have helped me get myself to a much more secure financial position. I am finally nearing the end of the road with my debt and getting there with a significantly higher credit score. Yay me! Trust me, if I can do it, you absolutely can too.
 |
| You're in denial about that ice cream too, huh? |
Listen, I know looking at a low bank balance and pile of bills can be difficult. I get it, I have been there and the damn struggle is real, okay. But seriously, girl, take some time to sit down and look at your financial situation. I know it sucks and it can be depressing, but getting out of denial is one of the only ways you can fix it if you've found yourself in a hole.
Once you know what your actual financial situation is, you can determine how to clean it up or if you need more income. If that's the case, it's fixable. You can ask for a raise, take on a second job temporarily or sell your kids on EBay (bonus points for a smaller food budget). Anything is possible.
Create a Basic Budget
Figure out what your absolute necessities are each month and figure out when they're due (avoid late fees and interest like the plague, if you can). Determine how much of each paycheck you need to pay to make sure you're on time.
If you find all of your bills hitting during one pay period, do some research and see if any of your creditors will move your due dates. Many credit card companies or phone companies will adjust your due date, as will some auto loan companies. Having a more balanced bill schedule will ensure you don't feel overwhelmed during the pay cycles where you have less money and will still allow you money for little things like food, gas and wine. You know, the important stuff.
 |
| Shit, you don't even have to wear pants to pay bills! |
If at all possible, set up automated bill pay. Most companies have this as an option when you register for an account online. When you do this, make sure you write it down somewhere where you will remember. I'm serious, write it down until you are used to the automatic payments coming out. Just trust me on this. I used to put recurring meetings in my Microsoft Outlook calendar to remind myself when I first started so I didn't think I had more money than I actually did.
Having your payments come out automatically significantly reduces the chance that you will get hit with an unnecessary late fee or interest charge. I know $25 or $35 for a late fee doesn't seem like a lot, but it can add up and it will seriously ruin your day if it was something you could have avoided. The only things I avoid paying automatically are things that vary significantly, like my electric bill. I want to see what they're charging me before I pay them, so pick and choose what you set up. This is best if it is a set amount each month, so you know what to expect.
Set a Payment Schedule
For those bills that you don't have setup with auto-pay, set a bill payment schedule and put a reminder somewhere (smartphones for the win!) until it becomes a habit. I pay my bills twice a month, the days I get paid, almost without fail. If it's not that day, it's the very next day. It took me a long time to get into the habit, but I never wonder if my bills are paid or if I've forgotten something. Keep your list of bills somewhere and break them into pay periods so you know what gets paid when. Having things in a list is super helpful and way better than the anxiety of thinking you forgot something.
 |
| Yeah, go get them nails did, girrrrrl! |
Hey, I don't mean go crazy with your credit card. But living on an absolutely strapped budget starts to get a little nuts if you never get to buy something you want and you're only paying off debt. Money is there for a reason and you work hard, so it is OK to get something you want, as long as you budget for it. I have started giving myself a small clothing budget every paycheck. It's not much, but I don't feel guilty if I want to buy something and it keeps me from going H.A.M. on every sale I see.
Take Baby Steps
Dave Ramsey is an extremely well-known financial guru whose "Baby Steps" have helped many people secure their financial future. I recommend checking out his 7-step program.
For anyone looking to figure things out without a Financial Advisor, this is one of the most straightforward ways to secure up your money situation. He lays things out in order of importance and gives awesome tips for getting your balances down on consumer debt, which is where you end up really losing the most money in interest.
He also advocates paying off your smallest debt first. It may not seem like much, but being able to cross something off the list gives you a sense of accomplishment and starts to make things seem less overwhelming. I thought this was kinda crap until I started doing it and realized it's really nice to see the list of creditors shrink. I highly recommend checking out his method if you're serious about your finances.
I hope this helps inspire you get your money matters in order. I'm happy to take questions. Stay tuned for the next installment of how to make credit cards work for you!
XOXO, Katz
0 comments:
Post a Comment