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5 Essential Steps to Right Your Financial Ship

StepsDeveloping a strong financial life is one of the most important things that anyone can do in their lives. Having a strong financial base can make living life more fun with less stress, and can lead to a more fulfilled life. If you’re feeling the pull of not being on track financially it can be a challenge to know where to start. With that in mind, the below steps should help right your financial ship or simply get started on an area you’ve neglected for too long.

Eliminate Debt

The first thing that anyone can do in order to get their finances in order is to pay off debt. Most of the time consumer debt has very high interest rates that become like shackles around our ankles. Many times this can result in hundreds or more in monthly payments just to debt. If you’re avoiding paying down your debt out of fear it’ll never be gone, don’t fall for the trap rather start throwing money at it today.

Invest

In addition to eliminating debt, learning how to invest is important to growing your wealth. There are many different forms of investing that a person can engage in, just find one you’re comfortable with and get started. The stock market and real estate are two different examples that anyone can do. In order to start investing, simply pick up a book or search online to start learning.

Increase Income

Another way that is often overlooked to help finances is to simply increase the income you make in a month. A common excuse I’ve heard many times is that it’s not possible to make extra money or only that it’s only for certain people. That’s simply not the truth. With the Internet, there are many ways to make money online even with very little skill. If working on a computer isn’t your thing you can always pick up a side hustle in your home town.

Eradicate Bad Expenses

There are many expenses that people have per month that can easily be eliminated with very little change in lifestyle. Cable television is a great example of an expense that can be eliminated. With the average monthly cable bill coming out to be just over $100, it’s an easy expense to cut. If you feel like you can’t survive with cable you can always get rid of channels you don’t watch to lower your bill or cut the cost altogether and use one of the many cord cutting options available. This is only one expense, but can lead to great savings over time.

Have a Plan

Finally, a person must have a financial plan for what he wants to accomplish in order to transform his financial life. Being knowledgeable about updates and offers by their banks can be beneficial. Switching your current account to banks who offer better incentives is a step towards better financial planning. It is much easier to work more and decrease expenses if a person knows exactly what they are working towards. There are many different financial plans available online or in books, and you should pick one that aligns with your values and dreams.

 

 

Photo courtesy of: ©Depositphotos.com/ponsulak

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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