How To Manage Money - How One Change A Month Could Get You Out Of Debt
More often than not it will be the small improvements over time that help to make the most significant difference. Consider it. If you wanted to loose pounds it will never just happen starightaway. You will need to make small changes in your regular life-style, and then as time passes those changes will result in overall weight loss. How to manage money is the same. It's the modest changes in money habits compounded over time that will help to make the greatest difference. If I stated a single change each month for a year would get you out of debt, would you trust me? Let us look at a few tips on budgeting a little closer:
Ask yourself, could you save $10 a month each month for a year? It wouldn't be that challenging. All you would have to do is take one expense each month and aim on how you can decrease it by $10. For example: if you gave your cable tv company a call and eliminated some of the options you never use. If you are able to do this for 12 straight months here is what the reward would be: Lets suggest somebody has $5, 000 in credit card debt at 18%. Here's the breakdown:
Minimum payment $150/month (3% minimum)
Interest paid $4, 799
Duration 18.8 years
Apply the $10 per month savings onto the credit card:
Balance after year one $3, 197.37
Payments on month 13 $120 (savings) + $150 (Original payment)
= $270
If you apply the $270/month straight onto the credit card it will take a total of 2.2 years to pay off the credit card debt and you will save $3, 897.33 in interest. If you now take that $270 monthly and invest it for 16.6 years you will have $117, 632 in the identical time it would take to originally pay off the credit card. If you learn how to manage money and follow quality tips on budgeting, it could make the difference in your financial situation. You can see with this example that twelve tiny changes distributed over 12 months can certainly make a substantial difference in your finances. Understand how to manage your money and challenge yourself to help make the small changes that can make the massive difference. Small steps toward a common goal can generate a huge change.
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Ask yourself, could you save $10 a month each month for a year? It wouldn't be that challenging. All you would have to do is take one expense each month and aim on how you can decrease it by $10. For example: if you gave your cable tv company a call and eliminated some of the options you never use. If you are able to do this for 12 straight months here is what the reward would be: Lets suggest somebody has $5, 000 in credit card debt at 18%. Here's the breakdown:
Minimum payment $150/month (3% minimum)
Interest paid $4, 799
Duration 18.8 years
Apply the $10 per month savings onto the credit card:
Balance after year one $3, 197.37
Payments on month 13 $120 (savings) + $150 (Original payment)
= $270
If you apply the $270/month straight onto the credit card it will take a total of 2.2 years to pay off the credit card debt and you will save $3, 897.33 in interest. If you now take that $270 monthly and invest it for 16.6 years you will have $117, 632 in the identical time it would take to originally pay off the credit card. If you learn how to manage money and follow quality tips on budgeting, it could make the difference in your financial situation. You can see with this example that twelve tiny changes distributed over 12 months can certainly make a substantial difference in your finances. Understand how to manage your money and challenge yourself to help make the small changes that can make the massive difference. Small steps toward a common goal can generate a huge change.
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