Living debt-free can seem daunting, especially in today’s economy. But with the right strategies and guidance, it’s possible to find financial security and live free of debt. Wayne von Borstel is an expert on this subject and has offered advice on how to do just that. Let’s take a look at his tips for living a debt-free life.
Create a Budget and Stick With It
Creating and sticking with a budget is one of the most important steps for achieving financial freedom. When creating your budget, start by listing your expenses, including rent/mortgage payments, utilities, food, transportation, entertainment, etc. Once you have listed your expenses, subtract the total from your income. If the resulting number is positive, you are on track to meet your debt-free goal! If not, consider ways that you can reduce spending or increase income so that you can get out of debt faster.
Pay Off High-Interest Rate Debt First
If you already have some existing debt, it’s important to prioritize paying off high-interest-rate debts first before tackling any lower-interest-rate debts. High-interest rate credit cards can quickly spiral out of control if left unchecked and will only continue to compound if not taken care of promptly. Start by making the minimum payments on all of your debts each month and then focus on paying off one high-interest-rate debt at a time until it is completely paid off before moving on to another one.
Save For Emergencies
Saving for emergencies is another important step toward achieving financial freedom. Unexpected events such as car repairs or medical bills can quickly derail our plans for financial security if we are caught unprepared without an emergency fund in place. Start by setting aside some money each month into an emergency savings account that can be used should an unexpected event occur.
Using tips from experts like Wayne von Borstel offers guidance on how we can achieve our goals without feeling overwhelmed or discouraged along the way. With discipline and knowledge about personal finance, we can learn how to create budgets that work for us and make sure that our finances are always in check. Continue reading this article to understand more at https://thebossmagazine.com/four-pillars-of-retirement/