You know you need to budget, save, improve your credit score, but you keep putting it off!!!!
Calm down and take one thing at a time!
Below is a VERY simple 4 step plan to take control of your money instead of your lack of money controlling you.
Follow this plan exactly and I guarantee you will have your finances under control in 5 days
1 Open A Separate Bank Account
First off, you can make a lot of sub-accounts so it’s easy to save for different things.
Currently, I have a sub-account for:
Having an account somewhere different than where you normally bank is pivotal because you are not constantly checking it. I set-up an auto-deposit of $100 per paycheck and never look at.
Whenever I get a check for some extra work I use their mobile app and deposit the check that way.
If you only do 1 thing I highly encourage you to open-up a separate bank account and start saving and investing.
2 Pay Down Small Debt / Transfer Balance
After you have saved at least 1 month of expenses-up in your separate account, it’s time to start paying debt-off.
Make a list of all your debts smallest to largest.
Then pay-down the ones with the lowest balances first. This will give you momentum to start paying-off all your debt.
I recommend getting a personal loan to pay-off all your credit card balances for two reasons:
- this will simplify your budget
- the rate on this loan will be dramatically lower than the rate the credit card companies are charging you
I also recommend you refinance your student loans. Although these loans generally have lower payments, you can pay-them off faster with a lower interest rate if you refinance them.
Everything is online and it’s very easy to set-up.
3 Start a Passive Income Stream
A lot of us talk about couponing and saving money here and there. However, the reality is that you can only cut your spending so much.
Having a passive income stream can accelerate your savings and investing goals. The best part about the passive income streams I have developed, is that they are passive.
If you are serious about building a passive income stream I would start a blog or a website.
There is basically no downside since you can get a domain name and hosting for $3/month with bluehost.
You can write when you want and make money off of adsense. You can also publish your own ebooks and courses and make money this way.
If you are interested in how I automated my real estate investing you can by my 80/20 Real Estate Book here
4 Invest Without Thinking
I am a big believer in both being organized and having everything automated so you can easily get a snap-shot of your budget and your net-worth without any actual work.
Personal Capital let’s you do just this.
I wrote a full-review of the site here: http://realestatefinancehq.com/my-new-favorite-budgeting-tool-that-is-completely-free/
Your Turn: Will you take the challenge to boost your savings this week?
Disclosure: This post includes affiliate links. Adding these links helps us keep the lights on in Real Estate Finance HQ, which makes it a lot easier to read to our kids after a long day of deal-seeking!