Dec 10
12
How To Sling Shot Yourself Out Of Debt
The 90/10 rule has been around since pretty much the beginning of civilization. It is quite simple. Live on 90% of your income and save the other 10%. Almost anyone can do this. And more often than not, most people who adhere to this principle usually step it up and start saving even more of their income. Simply because it is amazing to watch your savings grow and the sense of satisfaction and power over your finances it gives you
I can’t save 10% of my income I hear you saying. That is a bunch of hog wash. All you need to do is track where your money goes and you will be able to find way more than 10% that is being haphazardly wasted on trivial thing. Once you have found these things simply cut the spending and start saving.
Saving money is a choice. Either you will do it or you will not. If you do not have a reason, feel that it can’t be done or you just don’t want to make the effort than you will never save a dime. But all you need to do is start. Getting started is the hardest part. But once you start you won’t want to stop because seeing your savings grow gives you strength and discipline to continue on your quest.
Now that you are saving money you want to be smart with it. The first thing you should do is create an emergency fund. It is recommended that you put these funds in to a liquid account such as savings or money market so that it is earning some interest. You will want at least 3 but usually no m ore than six month of salary in this account.
This fund will prevent you from need to use those gosh darn credit card when something pops up out of the ordinary. Again this is an emergency fund and should only be used for that. An emergency would be any large unexpected expense or bill that you have not budgeted for. Thing such as your car breaking down, job loss, medical, etc.
You should never use these funds to pay for stuff or things that are optional. Things like a vacation, a special sale, or any other stuff that you can live with out.
Temptation will be high. There will always be that little voice on your head telling you it is okay to spend some of that money for unintended purposes. But if that money is not there when disaster strikes you will need to revert back to borrowing money. Having this fund not only gives you peace of mind if something where ever to require the use of these finds but it also gives you breathing room.
Something you may want to cut from your budget might be Wide Width Womens Shoes including Extra Wide Womens Shoes or not. It was just a thought.
