Smash these 6 Money Moments & Destroy Debt
It’s not too late to make 2017 the year you win the war on personal debt. If that seems daunting, try breaking that one goal into smaller bite sized chunks. That’ll keep motivation humming with little wins along the way with achievable ‘Money Moments’. These are goals to hit before the end of the year that will promote better saving habits, and ease financial stress.
Simply reading this article wont change old habits. To really make this concept stick, print this page stick it on the fridge, and cross off each ‘money moment’ as you reach them.
6 Money Moments to achieve this year:
If you don’t have an emergency fund your chances of getting out of debt drastically reduce. There will always be unexpected expenses and if you don’t have some cash tucked away you’ll have to get out the credit cards. This destroys your motivation and momentum. $500 is good starting point. This can be done by putting $20, cash in a tin and forgetting about it. Once you get to $500 go for $1000. Until you are debt free don’t worry about going over $1000. It should be enough to get you through most unexpected emergencies.
Design a Budget
A written down plan for where your money goes is an important step. Most unexpected expense s are actually predictable. You know when your rego is coming. You know that Christmas is coming up. A long term budget will help ensure that the emergency money is kept just for unexpected expenses, like the fridge or washing machine dying, or a medical emergency.
As much as possible, automate. Direct debits for everything! That way you won’t miss a bill and get stuck with late payment fees that kill a budget.
Use cash more. It’s the most effective way to control spending. At the start of the week get the money you need for the week and put it in your wallet/purse and that’s it. Even better use an envelope system. Put the money into each respective envelope in your wallet.
Down with debt
The first step when you find yourself in a hole is to stop digging. If you’re in debt your goal should be to have the debts go down this year. The more the debts go down the easier it is to pay it off because the interest bill goes down. The first step though is to get them to go down. It doesn’t have to be a lot but let 2017 be the year your debts went down.
Make a Will
It may seem a bit morbid but write a will. It’s important to have those hard conversations about who’s going to look after the kids. If you don’t have a will and, god forbid, something horrible should happen it can get very messy.
When you’ve ticked off all six, we want to hear about it! Better still take a selfie with your printout and post it on our facebook page for some well earned praise.
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