How To Manage Money - How One Change A Month Could Get You Out Of Debt
More often than not it is usually the little improvements over time that make the greatest difference. Think about it. If you planned to loose pounds it doesn't just materialize starightaway. You need to make tiny improvements in your regular life style, and then eventually those changes will end up in overall weight-loss. How to manage money is the exact same. It is the minor changes in money habits compounded with time that will cause the biggest difference. If I stated one change a month for a calendar year may get you out of debt, would you believe me? Lets us look at a few tips on budgeting a little closer:
Ask yourself, could you save $10 per month each month for a year? It wouldn't be that hard. All you would need to do is take one cost every month and aim on how you might possibly reduce it by $10. For example: if you gave your cable company a phone call and got rid off some of the options you never use. If you can do this for twelve straight months here is what the reward would be: Lets suggest a person has $5, 000 in personal 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 directly onto the credit card it will take a total of 2.2 years to settle the credit debt and you will save $3, 897.33 in interest. If you now take that $270 a month and invest it for 16.6 years you will have $117, 632 in the same time it would take to originally pay off the credit card. If you understand how to manage money and follow quality tips on budgeting, it could make major difference in your finances. You can see with this example that twelve little changes spread over 1 year will be able to make a substantial difference in your financial situation. Understand how to manage your money and challenge yourself to help make the tiny changes that will make the massive difference. Little steps towards a common goal can generate a huge change.
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Ask yourself, could you save $10 per month each month for a year? It wouldn't be that hard. All you would need to do is take one cost every month and aim on how you might possibly reduce it by $10. For example: if you gave your cable company a phone call and got rid off some of the options you never use. If you can do this for twelve straight months here is what the reward would be: Lets suggest a person has $5, 000 in personal 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 directly onto the credit card it will take a total of 2.2 years to settle the credit debt and you will save $3, 897.33 in interest. If you now take that $270 a month and invest it for 16.6 years you will have $117, 632 in the same time it would take to originally pay off the credit card. If you understand how to manage money and follow quality tips on budgeting, it could make major difference in your finances. You can see with this example that twelve little changes spread over 1 year will be able to make a substantial difference in your financial situation. Understand how to manage your money and challenge yourself to help make the tiny changes that will make the massive difference. Little steps towards a common goal can generate a huge change.
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