Most women pay their bills the traditional way by paying the minimum payment on their bills each month. Did you know that paying your bills this way can end up costing you double over the term of a loan? Just like compounding interest in a savings account that continues to pay you interest on the interest you earn, there is a flip side to that when it comes to debt.
Finances are the name of the game, and if not kept in top shape, your cluttered finances have a way of accumulating, and then catching up. Pay heed to these important Personal Finance Tips that can help you. Whether you are one of the employees of a huge company, or self employed professionals such as commercial mortgage brokers, there is simply no excuse to mismanage your money matters. Your personal finances are every bit as crucial as corporate finances, and vice versa, although the amounts of money may vary a bit.
MAGNITUDE. Think about this, you keep 100 cents of every unspent dollar but maybe just 60 to 75 cents of an earned dollar, after taxes social security, and other deductions that take their “fair” cut from your paycheck.
Taking out a $ 50 per month expense is the same as giving a $ 30,000 a year worker a 3.3% (or $ 1,000) pay raise. Someone once said “A penny saved is a penny earned”, but that was before taxes, now a saved penny is worth more.
SPEED. You can cut your spending faster then you can earn more money. It is as easy as canceling your gym membership. You become instantly better off not having that month expense. But to change your income is a much longer process.
For example, a person carrying an average of $ 290,000 in debt would end up paying more than $ 200,000 in additional interest on that debt for a total of $ 590,000! By not implementing the Wealth Accelerator plan, this person’s debt is costing them $ 230 a day! These are scary numbers! So how can you avoid being in this situation?
CONTROL. You have more control over spending than you do income. You are making dozens of spending decisions each and every day, like whether to turn down the thermostat in your house two degrees or if you want to get that extra large coffee this morning.
Getting out of debt is possible if you have the right tools to create your plan. Even if you don’t have as much debt as mentioned in the example, your debt is still costing you! Make the choice today to get out of debt and start building wealth for your financial future.
