D
Deleted member 117187
Guest
So when I turned 18 first thing I did was get a credit card. Shortly after that it was at its limit and eventually defaulted.
Here I am 6 years later and finally have a grasp on my financials. I am absolutely not rich.
But with discipline these past two years have been day and night difference.
Less than a year ago I was 13k in debt from cars and credit cards trying to repair my credit.
Now I'm almost debt free. And watching my bank account grow.
Here is what i did. That I learned from my dad and Dave Ramesy
1. Sat down and wrote down every bill.
(Phone, car payment, insurance, rent, ect)
I realized after all my bills were payed I had around 1600 and I was spending all of it with none going to savings
2. Made a budget using envelope system.
Put money in an envelope for food, one for gas, one for baby needs, one for spending money(entertainment or shopping), and savings,
Now once those two things are done you will be ready to start saving.
1. Save up 1000$ as fast as you can. For emergency fund. Cut back on all useless spending. It sucks but it's worth it.
2. Pay off all debt except house.
From smallest account to biggest. Pay minimum on every account but the current one being paid off pay ass much as possible towards that. Than once a debt is paid off apply that to your next account.
(Once I got to almost paying off my final account I started putting some back into savings.)
3. 3-6 month of expenses in savings.
(Rent or mortgage +phone+insurance+ utilities+food+gas) YOU SHOULD HAVE NO DEBT AT THIS POINT except mortgage
For me my expenses are about $2500
So I would save 7500-15000
4. RETIREMENT. Invest 15% of income into retirement. 401(k), Roth IRA, traditional IRA.
If your working fast food or making lots of money. Don't forget retirement.
5. Save for kids college.
By now your debt is paid, savings is built, and retirement growing. Use a 529 college savings fund or a cover dell ESA (education savings accounts)
These are investment accounts do your home works.
6. PAY OFF HOUSE EARLY. Any extra amount you can pay will result in huge savings.
If you haven't bought a house yet. Get a 15yr loan not a 30yr loan.
You will pay more a month but on a $200k loan you will save $50,000 over the life of your loan.
7. Build wealth. Now you have paid off debt and paid off your house and saved for retirement and kids the only thing left to do is build your wealth, travel, give.
This is not a get rich quick but you will live comfortably.
Sent from my iPhone using Tapatalk
Here I am 6 years later and finally have a grasp on my financials. I am absolutely not rich.
But with discipline these past two years have been day and night difference.
Less than a year ago I was 13k in debt from cars and credit cards trying to repair my credit.
Now I'm almost debt free. And watching my bank account grow.
Here is what i did. That I learned from my dad and Dave Ramesy
1. Sat down and wrote down every bill.
(Phone, car payment, insurance, rent, ect)
I realized after all my bills were payed I had around 1600 and I was spending all of it with none going to savings
2. Made a budget using envelope system.
Put money in an envelope for food, one for gas, one for baby needs, one for spending money(entertainment or shopping), and savings,
Now once those two things are done you will be ready to start saving.
1. Save up 1000$ as fast as you can. For emergency fund. Cut back on all useless spending. It sucks but it's worth it.
2. Pay off all debt except house.
From smallest account to biggest. Pay minimum on every account but the current one being paid off pay ass much as possible towards that. Than once a debt is paid off apply that to your next account.
(Once I got to almost paying off my final account I started putting some back into savings.)
3. 3-6 month of expenses in savings.
(Rent or mortgage +phone+insurance+ utilities+food+gas) YOU SHOULD HAVE NO DEBT AT THIS POINT except mortgage
For me my expenses are about $2500
So I would save 7500-15000
4. RETIREMENT. Invest 15% of income into retirement. 401(k), Roth IRA, traditional IRA.
If your working fast food or making lots of money. Don't forget retirement.
5. Save for kids college.
By now your debt is paid, savings is built, and retirement growing. Use a 529 college savings fund or a cover dell ESA (education savings accounts)
These are investment accounts do your home works.
6. PAY OFF HOUSE EARLY. Any extra amount you can pay will result in huge savings.
If you haven't bought a house yet. Get a 15yr loan not a 30yr loan.
You will pay more a month but on a $200k loan you will save $50,000 over the life of your loan.
7. Build wealth. Now you have paid off debt and paid off your house and saved for retirement and kids the only thing left to do is build your wealth, travel, give.
This is not a get rich quick but you will live comfortably.
Sent from my iPhone using Tapatalk