I am sure most of my readers must be regular in their updates with multiple personal finance blogs. But how many of you have truly started implementing these strategies that you read? I am sure many of you are still in the contemplating phase as to how to begin, where to begin and when to begin?
Let me answer the questions in the reverse order. The time to begin is ow, because you have already invested a lot of time in the ‘knowing how’ phase, its high time you invest your money not just time and energy.
About the question as to where and how to begin, we will discuss that in detail. Most of you must be confused about prioritizing. Whether to begin by reducing the debt or starting to save? There is no perfect answer to this question. One answer cannot be applicable to everyone. If i was in your situation, i would first allot more funds in reducing the debt and little towards saving, once the amount of debt is considerably low, i would switch the scenario.
Money management is definitely not rocket science. All you need to do is give it a structure and break it down to small goals and then everything becomes simple. You first step should be to spend as much less as possible than you earn. You do not have to be stingy but you most definitely have to be frugal. If you find yourself partying every weekend, reduce it to one weekend in month. This is going to save a lot of money which can be redirected towards savings or debt.
Categorize your debt, start by paying regularly for the highest debt. Once it is over concentrate on the next debt. But don’t ever stop making regular payments. A debt free life could be like a heaven. Your trip to Europe can be postponed a little, once you clear your debt, the trip could be enjoyed in a guilt free and tension free manner.
Set up a savings account. Make sure you allot each month at least 10-20% of your take home income in some sort of saving. This should become a habit. This way you never have to be financially dependent on any one else.
Even if you have just begun your earning career, your time to start is now, because the earlier you start, the sooner you will be rich.
