Achieving Financial Stability while Reducing Debt

Obtaining Financial Stability doesn’t have to be overwhelming. There are a few steps that you can implement to help guide you towards living a financially stable life.

Here are 3 ways that can help you get moving towards financial stability

  1. Track Your Spending

It is important to see where you are spending your money, so you can reduce any unnecessary expenses that you have. You will need to spend time tracking your expenses. You will want to track 3 months to really help you get a good sense of how you are spending your money. This will take some time as you will need to write down all the transactions that you do using cash, credit cards and your debit card. Don’t forget to track any money coming into your account as it is not just about expenses but income as well. After you have written down your spending over a 3 month period, take some time to review each transaction and determine if they are necessary. Once you have your list, make the decision on which expenses you are going to eliminate from your budget. You may discover that some of these expenses you don’t even miss and others you might bring back after a period of time.

  1. Eliminate Debt

Another way to help with financial stability is to eliminate your debt. You can do this by creating a debt elimination plan for your credit cards balances, personal loans, medical loans, etc. There are different ways that this can be accomplished. One way is making a list of all your debt in order from smallest balance to largest balance and focus on paying off the smallest balance first. Once that balance is paid, apply it to the next one in addition to your regular payment. This is also referred to as the Snowball Debt Effect to eliminate your debt.

  1. Increase your savings.

As you work toward eliminating your debt, you will want to consider your savings. Do you have an emergency fund? What about a retirement savings plan? There are many different ways that you can use to increase your savings. One of the easiest ways is to have it automatically transferred from your account every payday, even if it is $10 a paycheck, it is a start. Over time, you might be able to increase that amount and before you know it you will have money set aside.

Do you need guidance on moving towards financial stability?

At Lasiter & Lasiter, we are your Trusted Accounting Firm located in Indianapolis, IN. We can help you with creating financial stability in your life and business. Whether you live local to us or in another state, give us a call today and let’s get started!

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