What is your financial foot print? Are you taking steps forward or going backwards or are you at a stand still.
I know that before we refinanced our home loan we were owning our house more each month by $80.00. Now that we are at a shorter term and a smaller interest rate we are owning our house by $200.00 each time I make a minimum monthly payment. My foot print forward is bigger now. Another item that would add to your financial foot print forward is how much you are putting into our 401k and IRAs each month. Because we are trying to get out or debt we are only putting 300.00 away each month towards saving products.
Another piece of your financial foot print forward is how much debt you are paying off.
To really see how much your equity is increasing put together your financial statement, then up date it every three to six months. I just updated my financial statement and just running the numbers of how much less debt we have now compared to January really has motivated me to keep on with my financial goals. I can see progress and if I keep going at this same rate I can see the light at the end of my getting completely out of debt tunnel. I can also see that if I save and invest this same money that is now being used to get us out of debt it can fund our retirement. Retirement is another place that seems very hard to do when starting out. I now feel like I can do it now I have a plan or should I say a map to follow.
I always remember the quote that if you fail to plan you plan to fail. Please just think about planning your financial life. Map out where you are at now then make a goal then make a map on how to get where you want to go financially. You can always adjust it when life throws something your way good or bad.
Like a raise you can choose to put it all away for retirement. If you get a windfall you can pay down you debt or save it in your emergency fund. Another quote I just have to share with you is that if you plan for bad times you will only see good times. I think of this quote every time I fill my food storage pantry. And every time I strive through a short on money time without getting into my emergency fund money. I try not to use that emergency money until the last last last resort. I kind of pretend it doesn't exist. That way it can stay saved.
I hope this article keeps you motivated to run the numbers in your families financial statement to see if you are stepping forward and how big of steps you are taking and how to improve your financial foot print to make it the biggest step possible in your financial life.
Showing posts with label How to get out of debt. Show all posts
Showing posts with label How to get out of debt. Show all posts
Tuesday, April 5, 2011
Debt Freedom Calulator link
New tool to track your debt
As your debt freedom coach everyday I am reading blogs, I listening to Dave Ramsey helping others on his radio show. I am trying to find the best information to save money and use it wisely. Every time I leave my 22 month old daughter to work a long day I pray that I can use the money I earn in the best way possible and not waste any of it. I want to provide the best for her and my other children.
I want to teach them as well as everyone who reads my blog about money so they can start early and not make very many money mistakes. As with anything mistakes are made they are sometime a big part of learning. My personality is, if I read about money mistakes I learn form them as well. We should always learn from every mistake, openly tell others about them and how you learned from them this way your mistake could benefit so many others in my personality type. I hope they is more people like me out there.
Well I just have to tell you about a new debt tracking tool I found on line your just plug in your debts ( your balances interest rates and min payments)and it makes your personal debt freedom plan. It is soo cool!
After entering in all my information I could plan to have my all my debt including my house paid off in 5 to 6 years. That would be awesome!!
You have got to try it…
Her is the link
http://www.whatsthecost.com/snowball.aspx?country=us
It the top just remember to put in the all the minimums you are paying plus the extra you are putting into getting out of debt.
Example car payment 190.00 house payment 550.00 credit card 50.00 plus the 200.00 extra you are snowballing in to the smallest debt.
So the top number would be 990.00 in this case
I also made the error of putting my house payment including the escrow so I had to refigure it again with the correct figures.
After you put in all your info print it out and track every payment you make that what I am going to do.
If you have any questions or comment just let me know.
Thanks for reading.
As your debt freedom coach everyday I am reading blogs, I listening to Dave Ramsey helping others on his radio show. I am trying to find the best information to save money and use it wisely. Every time I leave my 22 month old daughter to work a long day I pray that I can use the money I earn in the best way possible and not waste any of it. I want to provide the best for her and my other children.
I want to teach them as well as everyone who reads my blog about money so they can start early and not make very many money mistakes. As with anything mistakes are made they are sometime a big part of learning. My personality is, if I read about money mistakes I learn form them as well. We should always learn from every mistake, openly tell others about them and how you learned from them this way your mistake could benefit so many others in my personality type. I hope they is more people like me out there.
Well I just have to tell you about a new debt tracking tool I found on line your just plug in your debts ( your balances interest rates and min payments)and it makes your personal debt freedom plan. It is soo cool!
After entering in all my information I could plan to have my all my debt including my house paid off in 5 to 6 years. That would be awesome!!
You have got to try it…
Her is the link
http://www.whatsthecost.com/snowball.aspx?country=us
It the top just remember to put in the all the minimums you are paying plus the extra you are putting into getting out of debt.
Example car payment 190.00 house payment 550.00 credit card 50.00 plus the 200.00 extra you are snowballing in to the smallest debt.
So the top number would be 990.00 in this case
I also made the error of putting my house payment including the escrow so I had to refigure it again with the correct figures.
After you put in all your info print it out and track every payment you make that what I am going to do.
If you have any questions or comment just let me know.
Thanks for reading.
Tuesday, July 6, 2010
How to get Out of Debt
How to get out of debt
The debt blaster plan
Before you read this and start this program you need the desire to want to be debt free. It does take commitment after your personal plan is mapped out. Good luck!
Debt is not healthy it can make us feel sick, it can affect our physical and mental health and it can impact our relationships. Stress, anxiety, and depression are common for those with uncomfortable amounts of debt. So many times debt leads to stress and in our busy lives nobody needs any extra stress.
I chose to teach others about this topic because I love learning about how to improve my financial situation and I love to study money. I just think there is a better way than to live pay check to paycheck. After I got out of debt for myself I also felt strongly inspired to share this debt blaster plan with others.
The Debt Blaster Program
(Hint) try and make this program a lifetime habit
Step 1
Stop accumulating bad debt (bad debt is debt that doesn’t bring in a return). First we need to stop spending especially using credit cards, try to pay with cash or with your checking account. If you do use your credit card, it has to be paid off by the end of the month no exceptions!!
Second, never pay a credit card payment late, first of all this shows up on your credit report, second of all they charge a hefty fee and this is just like giving away money.
Third, don't pay fees for using your ATM card to get cash. I say this because you should not have to pay to get your money out of the bank. Some banks charge 2.00 to get your money out at a gas station.
Fourth, watch for tricky schemes that credit card companies use to get you to spend more. Don’t be seduced by credit card offers such as airline miles and points. These programs are designed by the credit card companies to trick you into using your card more than really needed.
Step 2
See where you are at financially with your debt; write down all you owe and what your monthly payments are. This process is like getting directions. In order for you to get you where you want to be financially you need to know where you are right now. This will be your starting point..
To do this you need to list all of your debts include personal loans, car loans, all credit cards, student loans and you can even include your home mortgage. Put this information into 3 columns
Amount owed – minimum payment - # of months till paid off – interest rate
Step 3
Determine the best way to pay off the debt by ranking them. Look at the column with number of months to be paid off. Rank them by putting the account with the lowest number first, the one with the second lowest number second and so on. Now you know the most efficient order in which you should pay off your debt. You have now got directions to getting your self out of debt.
Step 4
Find additional income- try to find $50-$200 per month. This may seem hard but if you really want to get out from under debt you will be able to find additional income. If you have the will there is a way, if you believe you can do it you can, if you believe you can’t you can’t. Your own belief in yourself will determine your success.
Here are some ideas on how to find additional income, get a second job, increase hours at current job, and ask for a raise. Tutoring, mowing lawns, babysitting could give you some additional income. Stop spending on movies and get them at the library instead. Does your family really need cable? (Just let go of cable til you are out of debt) Like eating out? Try picnicking. Stop shopping just to shop. Magazines do you really need them? You could sell an extra car, or trade an expensive car for a less expensive car that has no payment. Give your self manicures and pedicures.
Find our where all your money is going by making a journal of everything you spend. Just by having to write it down you will automatically spend less. What about your tax refund? Your tax refund could jump start your get out of debt plan or it could blast your way closer to your goal of being debt free and/or in control of your financial life. Analize your budget can you save even ten dollars a month by having the smallest garbage can and recycling. Call your around to see if you can save on your car insurance.
Ask for lower interest rate
Help yourself get out of debt faster by calling each credit card company and asking for a lower interest rate. This way you are paying less interest to the bank and more money on your balance.
Here is a script:
"I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank's name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead."
Step 5
Attack the Debt you ranked number one. Keep paying the minimums on everything except the first debt to be paid off (the one you ranked number one), pay the minimum plus the additional income (this amount can be any amount you decide just keep it the same or more every month) Keep doing this until the first debt is paid off. After the account is paid off, do not close the account, keeping this account open but not in use will help your credit score. Just make sure you are not paying any annual fees on this account to keep it open.
Credit score tip: if you do use a credit card only us up to 50% of the maximum
Congratulate yourself!! (at this point you should start to see the light at the end of the tunnel, plus have less stress caused by debt)
Step 6
Attack the debt you ranked number two. Pay the minimum on every bill except the second debt to be paid off you now pay the minimum due plus the entire amount you have been paying to the first debt Continue till everything is paid off. Keep doing this over and over til you debt is gone. Then Congratulate your self!! You are now debt free!
Step 7
By this time your monthly payment on your last debt is likely to be big now take this money and build your self an emergency savings fund with at least 6 months of living expenses set aside. I personally put my emergency fund in to a CD ladder to earn more interest than in a regular savings and I can have access to a portion of my emergency fund every month. After having you emergency fund in place I suggest putting at least 15% of income away for retirement. Look to 401k and Roth IRA as places to start.
Here is an example of how to get out of debt
Here is where we are at
# of months
Bal. owed Payment till paid off ranking
Visa Card 2,000.00 90.00 23 2
Herbergers 600.00 30.00 20 1
College Loan 3,000.00 50.00 60 4
Reg Loan 1,500.00 50.00 30 3
Car Loan 9,000.00 280.00 33 5
Here is our plan (it will approximately take us 28 months to be debt free).
In our example we have $100.00 of found additional income
Pay all bills as usual except pay $130.00 (100.00 + 30.00) to Herbergers. In 5 months it will be paid off – celebrate!
Next pay all bills as usual except pay $220.00 (130 + 90) to the Visa Card. In eight months it will be paid off. Yea!
Now start on the debt ranked 3, pay all bills as usual except on the home reg loan. Pay 220.00 plus the minimum payment of 50.00 equaling 270.00. In four months this will be paid off. Half way there!
The college loan is next, pay 270.00 + 50.00 =320.00 on your college loan
7 months till paid off.
Now apply 280.00 minimum payment plus 320.00 equaling 600.00 on your car loan this will be paid off in 4 months. Celebrate!
Last step is to build an emergency fund, put away the 600.00 per month till you have six months of your income put away. Learn about a CD ladder Then start putting away money for your retirement and other goals.
I hope this information will change you life like it did mine. Please share it will anyone you wish. If you have any questions please email me.
I hope your debt free soon!
Gina Wadding
The debt blaster plan
Before you read this and start this program you need the desire to want to be debt free. It does take commitment after your personal plan is mapped out. Good luck!
Debt is not healthy it can make us feel sick, it can affect our physical and mental health and it can impact our relationships. Stress, anxiety, and depression are common for those with uncomfortable amounts of debt. So many times debt leads to stress and in our busy lives nobody needs any extra stress.
I chose to teach others about this topic because I love learning about how to improve my financial situation and I love to study money. I just think there is a better way than to live pay check to paycheck. After I got out of debt for myself I also felt strongly inspired to share this debt blaster plan with others.
The Debt Blaster Program
(Hint) try and make this program a lifetime habit
Step 1
Stop accumulating bad debt (bad debt is debt that doesn’t bring in a return). First we need to stop spending especially using credit cards, try to pay with cash or with your checking account. If you do use your credit card, it has to be paid off by the end of the month no exceptions!!
Second, never pay a credit card payment late, first of all this shows up on your credit report, second of all they charge a hefty fee and this is just like giving away money.
Third, don't pay fees for using your ATM card to get cash. I say this because you should not have to pay to get your money out of the bank. Some banks charge 2.00 to get your money out at a gas station.
Fourth, watch for tricky schemes that credit card companies use to get you to spend more. Don’t be seduced by credit card offers such as airline miles and points. These programs are designed by the credit card companies to trick you into using your card more than really needed.
Step 2
See where you are at financially with your debt; write down all you owe and what your monthly payments are. This process is like getting directions. In order for you to get you where you want to be financially you need to know where you are right now. This will be your starting point..
To do this you need to list all of your debts include personal loans, car loans, all credit cards, student loans and you can even include your home mortgage. Put this information into 3 columns
Amount owed – minimum payment - # of months till paid off – interest rate
Step 3
Determine the best way to pay off the debt by ranking them. Look at the column with number of months to be paid off. Rank them by putting the account with the lowest number first, the one with the second lowest number second and so on. Now you know the most efficient order in which you should pay off your debt. You have now got directions to getting your self out of debt.
Step 4
Find additional income- try to find $50-$200 per month. This may seem hard but if you really want to get out from under debt you will be able to find additional income. If you have the will there is a way, if you believe you can do it you can, if you believe you can’t you can’t. Your own belief in yourself will determine your success.
Here are some ideas on how to find additional income, get a second job, increase hours at current job, and ask for a raise. Tutoring, mowing lawns, babysitting could give you some additional income. Stop spending on movies and get them at the library instead. Does your family really need cable? (Just let go of cable til you are out of debt) Like eating out? Try picnicking. Stop shopping just to shop. Magazines do you really need them? You could sell an extra car, or trade an expensive car for a less expensive car that has no payment. Give your self manicures and pedicures.
Find our where all your money is going by making a journal of everything you spend. Just by having to write it down you will automatically spend less. What about your tax refund? Your tax refund could jump start your get out of debt plan or it could blast your way closer to your goal of being debt free and/or in control of your financial life. Analize your budget can you save even ten dollars a month by having the smallest garbage can and recycling. Call your around to see if you can save on your car insurance.
Ask for lower interest rate
Help yourself get out of debt faster by calling each credit card company and asking for a lower interest rate. This way you are paying less interest to the bank and more money on your balance.
Here is a script:
"I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank's name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead."
Step 5
Attack the Debt you ranked number one. Keep paying the minimums on everything except the first debt to be paid off (the one you ranked number one), pay the minimum plus the additional income (this amount can be any amount you decide just keep it the same or more every month) Keep doing this until the first debt is paid off. After the account is paid off, do not close the account, keeping this account open but not in use will help your credit score. Just make sure you are not paying any annual fees on this account to keep it open.
Credit score tip: if you do use a credit card only us up to 50% of the maximum
Congratulate yourself!! (at this point you should start to see the light at the end of the tunnel, plus have less stress caused by debt)
Step 6
Attack the debt you ranked number two. Pay the minimum on every bill except the second debt to be paid off you now pay the minimum due plus the entire amount you have been paying to the first debt Continue till everything is paid off. Keep doing this over and over til you debt is gone. Then Congratulate your self!! You are now debt free!
Step 7
By this time your monthly payment on your last debt is likely to be big now take this money and build your self an emergency savings fund with at least 6 months of living expenses set aside. I personally put my emergency fund in to a CD ladder to earn more interest than in a regular savings and I can have access to a portion of my emergency fund every month. After having you emergency fund in place I suggest putting at least 15% of income away for retirement. Look to 401k and Roth IRA as places to start.
Here is an example of how to get out of debt
Here is where we are at
# of months
Bal. owed Payment till paid off ranking
Visa Card 2,000.00 90.00 23 2
Herbergers 600.00 30.00 20 1
College Loan 3,000.00 50.00 60 4
Reg Loan 1,500.00 50.00 30 3
Car Loan 9,000.00 280.00 33 5
Here is our plan (it will approximately take us 28 months to be debt free).
In our example we have $100.00 of found additional income
Pay all bills as usual except pay $130.00 (100.00 + 30.00) to Herbergers. In 5 months it will be paid off – celebrate!
Next pay all bills as usual except pay $220.00 (130 + 90) to the Visa Card. In eight months it will be paid off. Yea!
Now start on the debt ranked 3, pay all bills as usual except on the home reg loan. Pay 220.00 plus the minimum payment of 50.00 equaling 270.00. In four months this will be paid off. Half way there!
The college loan is next, pay 270.00 + 50.00 =320.00 on your college loan
7 months till paid off.
Now apply 280.00 minimum payment plus 320.00 equaling 600.00 on your car loan this will be paid off in 4 months. Celebrate!
Last step is to build an emergency fund, put away the 600.00 per month till you have six months of your income put away. Learn about a CD ladder Then start putting away money for your retirement and other goals.
I hope this information will change you life like it did mine. Please share it will anyone you wish. If you have any questions please email me.
I hope your debt free soon!
Gina Wadding
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