The burden of debt is affecting more Americans than ever before. From mortgages to auto loans and credit card debts, it is harder than ever to avoid debt from piling up.
Nothing worth having is ever easy, and the path to living a debt free life is no exception. Getting rid of debt requires attention, discipline and sacrifice, but we’re here to help! Read on for some easy ways to start saving a little more each month so you can reach your financial goals.
One of the most essential steps to eliminating debt is creating a budget . Without one, it’s difficult to determine if you’re spending too much on expenses you could be cutting out each month.
A budget should not only paint a picture of where your money should be spent, but it should also give you an idea of any unnecessary items you're spending money on. By creating a budget, you might realize you’re still spending $15 a month on a subscription service or app that you no longer use or don’t realize that you’re paying for at all.
Want to become a pro? Try downloading a financial planning app like the You Need a Budget app. This app allows users to view their bank account to see exactly how their money is being spent each month. By doing so, users are empowered to prioritize their money to benefit future goals. And with a free trial offer, downloading the app is a quick and easy way to start saving!
Boosting savings wherever possible is another critical step on the road to becoming debt free. A high yield savings account is the best way to store your money while allowing interest to build. Since these accounts are federally insured, they are much safer than investing in stocks, which can help you reach your debt free goals.
Banks like Ally, Alliant, and Goldman Sachs Online don’t have the expense of maintaining brick-and-mortar branches, which allows them to offer interest rates that are much higher than a physical store could offer. Another benefit of these online savings accounts is that they do not require a minimum balance. Of course, you’re going to want to grow your balance as fast as you can, but not worrying if your savings balance is high enough means you can save what your budget allows for and get started achieving your financial goals more quickly.
It’s also important to have money set aside. Budgeting should always allow for emergency circumstances and having a high-interest savings account helps plan for this. Unlike other more volatile investments, an online savings account allows you to draw on your money up to six times a month. If some unforeseen expense rears its ugly head, having the peace of mind of a savings account can make all the difference.
From splurging on your favorite snacks at the store to ordering takeout throughout the week, food has a habit of being a budget burden. Fortunately, it is easy to cut costs when it comes to food expenses. By preparing your own meals, you can cut out a substantial amount of monthly spending.
To get started saving money, make a list of some meals that are easy to make. In this case, the internet is your friend. There is a wealth of easy to follow recipes online that can prevent a string of regular dishes from feeling stale. Even more, investing in a slow cooker can further your progress by cutting down on the time you spend cooking.
Budgeting your money doesn’t have to be painful. After all, what’s the point of saving if the only thing you have to look forward to is paying bills? Be sure to include a small monthly allocation towards a savings goal that fits in the feel-good range, like saving for a family vacation or purchasing a special gift for someone.
A good rule of thumb is the 50/20/30 rule: spend 50% of your income on needs like rent, food and bills, 30% on wants, and 20% on “future you.” This way, you are budgeting while making space for experiences and items you want to purchase while still investing in your future goals.
By adding a few“treat-yourself” goals into your budget, you and your family will have something exciting to keep in mind while securing those purse strings.
Did you know that you can use life insurance to tackle debts one by one? And in doing so, you won’t be spending any additional money than you’re currently spending?
Symmetry Financial Group’s Debt Free Life solution uses the cash value of your life insurance policy to help pay off debt. Debt Free Life is designed to help you achieve a completely debt free lifestyle by allowing you to become your own bank. This way, you can attack each of your debts until there are none left and avoid any accrued interest along the way.
Debt Free Life will give you the power to take your finances back into your own hands, without having to navigate your financial burdens alone or struggle with the endless amount of interest that builds up on your credit cards, mortgage loans, and beyond. All of this, coupled with the ability to save for retirement, makes Debt Free Life the perfect solution to getting out of debt for good.
You’re steps away from beginning your journey to a debt free life, so let’s get started today!