Savings and Debt

How do you actually save for a special item or get out of debt? Of course you’re already putting regular money into savings. This is referring to that trip or expensive new item you need.

Step 1: Determine how much money you need.
If you’re working on getting out of debt, don’t forget to factor in interest payments.

Step 2: Determine how long you have to save, or how soon you’d like to be out of debt.

Step 3: Divide the total needed by the number of months to figure out how much money you need to set aside each month or pay to your creditors.

This also works for Christmas. Yes it just recently ended, but now is the best time to think about how much money you’ll need next December and start setting aside a monthly allowance.

Here's a link to a wonderful story about a family that paid down over $90,000 in debt in a very short time. You might find it inspirational!