Single or suddenly single? Do you find yourself having to take on the task of financial management for the first time? Are you overwhelmed by the mere thought of having to figure out your bills?
Don’t stress. At DCC, we’re here to help.
Start by analyzing your financial situation:
- Organize your financial
- Review your bills
- Learn how to balance your checkbook. The key is to record every transaction you make whether it’s an ATM withdrawal, debit purchase, deposit, check or bank fee. Always record these transactions right away so you won’t forget about them.
Then consider: How much does it cost me to live?
Create a budget. The idea of a budget is to become more aware of where your money goes so you can make conscious decisions about your spending. Stick to it and you will start to see where you can painlessly save money that can be used to build an emergency fund or for an important purchase or goal. Just add up your monthly expenses such as food, rent, car payments, entertainment, etc. Subtract the total amount of your monthly expenses from your total monthly net income. If necessary, adjust monthly spending so you can live within your means and if possible, with a few dollars left for savings.
Order your credit report:
How’s your credit? When was the last time you ordered your credit report? Lenders use the information in your credit report to determine whether or not you are a good candidate for a loan and what type of interest rate you will pay. The most important factor that influences your credit score is payment history. Always pay your bills on time and keep your credit history clean.
Take steps to pay down your credit card debt:
- Stop any new spending on your cards and avoid opening up any new ones.
- Always be sure to make full minimum monthly payments each month and on time.
- As soon as possible start paying more than the minimum on the card with the highest interest rate. The idea is to pay as much above the minimum as you can until it’s paid off.
- Continue to make full minimum monthly payments on all other cards, on time.
- As soon as the first card is paid off, take the money that would have gone to pay that card and add it to the payment for the card with the next highest interest rate, until it’s paid off.
- Continue to do this until all cards are paid off.
- Contact creditors directly to see if you can get a reduced interest rate, or consider going to a debt
counseling agency.
Plan for retirement.
As important as it is to keep your finances in order now, it is just as important to prepare for your future. It’s never too soon to start investing in retirement. Don’t just rely on social security income when you retire. It won’t be enough to sustain your standard of living.
- Does your job offer a 401k plan? If so, now may be a good time to take advantage of it.
- Or invest in an Individual Retirement Account (IRA) which can be opened without going through your employer.
Sometimes it can be a real challenge to learn new skills or habits.
But it’s a great feeling to know you can do it!
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