Being in debt is stressful, especially if you’re on a salary that barely covers your other regular expenses. However, it is possible to get out of debt on a low salary.
Just like any other trying financial situation, becoming debt-free with a smaller income requires focus, persistence, patience, and the ability to be honest with yourself.
Avoiding debt can be tough. These days, debt in America affects almost everyone. According to Northwestern Mutual’s 2018 study, only 23% of people are debt free.
Balancing your budget can be a struggle. Are you paying too much for your mortgage and too little on healthy food? How are you supposed to save for the future and enjoy life now?
The 50/20/30 rule — spend 50 percent of your income on needs, 20 percent on savings and debt, and 30 percent on wants — is a simple way to think about using a basic budget to get a handle on your finances.
If you have found yourself with seemingly-insurmountable debt, the road ahead can be unclear and perilous. Whether your balances are due to medical expenses, student loans, or credit cards, it can be incredibly challenging to get out of debt. Interest rates, loan terms, and hidden fees can make your repayment efforts seem futile. If you are looking to make wise financial decisions and get out of debt, avoid making these common mistakes.
Whether you have accrued debt from student loans, credit cards, or other means, getting out of debt can take decades of hard work. High interest rates, unexpected expenses, and low earnings can all contribute to mounting debt. Fortunately, there are some approaches that borrowers can take to minimize their debt over time. If you have recently decided to redouble your efforts and focus on reducing debt, there are a few strategies to help you determine which debts to tackle and when.
For those who are just starting to get serious about their money, delving into personal finance education is a critical endeavor. Not everyone is exposed to finance-focused lessons in school. Many of us are expected to jump right into adulthood with very little formal education on things like loans, investing, and credit. If you are just starting your personal finance education journey, consider learning more about these three topics.
Few things in life are as exciting and intimidating as buying a home for the first time. For first-time homeowners, the process can appear incredibly overwhelming. It can seem like there are a million different tasks that need to be done in tandem, with each one ready to go before anything can proceed. However, with a little bit of research and a lot of planning and hard work, buying a home is an achievable goal for many Americans. Fortunately, there are a few basic steps that beginners can take to prepare before buying a home for the first time.
Most financial responsibilities are predictable, but you need rainy-day funds to deal with the unpredictable. Do you have enough?
Financial crises do arise, times when you must pay for something unexpectedly and immediately.
A medical emergency could keep you out of work. Your car could break down. Home repairs could become immediately necessary. In the meantime, all your regular bills are still due.
A big part of why we want to make (or save) money in the first place is to enjoy it. But it’s hard to save for concert tickets, travel, and other bigger purchases when all your money disappears on an average Friday night.
Are you feeling the gnawing pain of financial anxiety? You’re not alone. A majority of Americans (59 percent) report that they live paycheck to paycheck.
