How to get out of debt and start saving

Outstanding debts

debt

Knowing the details of outstanding debts should be the first step. Make a list of them, identifying the financial institution, committed fees, interest rate and outstanding amount. It also includes all small debts with friends or family. The commitment is in all areas.

If you have any questions, or there is a possibility that you have forgotten some of the debts.

This exercise will allow you to establish which debt charges the most interest and you can strive to eliminate it, even if it means making a great temporary sacrifice. At this point you should also stop increasing the debt and start working on a plan.

The perfect plan: family budget

The perfect plan: family budget

If you have already asked yourself how to get out of debt, or you are in Veráz and you need to cancel debts, you should start putting together the master savings plan and execute it, since all the time it takes to start with it will play against you and in of your finances

There are certain tips that we know can help you get your economy on track and start saving, so take paper and pen, we tell you:

  • Start by establishing a personal or family budget.

  • Check your total monthly income, vacation vouchers, professionals and any entry you should consider for the course of that first year.

  • Prepare a list of monthly services that you cannot fail to honor; as well as payments for education, transportation, maintenance, medical treatment, food and any other way out that you can include as a fixed household expense.

  • You can make a list with the superfluous expenses of the last weeks or months, to review what you spend your money on. It includes sweets, alcoholic or sweet drinks, night outings, shows, sports and any item of a non-essential nature.

This preliminary balance will allow you to establish your real repayment capacity and measure your borrowing capacity. If the resulting difference is less than the amount of debts you face monthly: You have to increase your income and control your expenses!

In the process to increase your income

income

Check your real skills so you can focus on extra activities that facilitate the increase of your monthly income:

– If your art is cooking and you stand out in desserts, you can offer cakes or cookies to friends and acquaintances. Check your options on the web. Many freelance work pages offer you unsuspected opportunities such as writing, translation or online assistance.

– If your art is crafts, take advantage of your social networks to promote your work, seeking to interest acquaintances and establish the possibility of a small personal business. You can offer for sale personal or household items that you do not need, everything is valid.

The final step

When you cancel the debts you will recover your monthly capital and you will have the opportunity to start saving. You can build an emergency fund, if you do not already have it, which will allow you to avoid unnecessary indebtedness in the future.

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