Getting Your Financial Hard Wiring In Order

Take care of your needs first!

Find out who you owe ( pull a credit report)

Pay it all off via monthly payments ( do not go by the minimum payments, go overboard to reduce interest)

Although, I do not like budgets, just track your spending, (hint: do not spend more than your paycheck, avoid the credit card) Your credit card is not an extension of your paycheck, remember, every time you use it you are taking out a loan.

Rule of Thumb:

To get out of debt:
Spend less than you earn, use the excess money to throw at your debt


To build wealth:
Spend less than you earn, use the excess money to throw at savings/investments


Simple, just reverse the process!

So why everyone is not out of debt and building wealth... Discipline, Delayed gratification, family illness, job loss, car repair, dental, health bills, divorce, etc. I can go on and on.

Life happens! Try to minimize emergencies by having a cash cushion.

Find out the biggest mistake you made with money and what caused you to get deep in debt with money and learn from that. It could be a car payment, dining out, impulsive shopping, whatever! Find out the symptom!

Via Moneymonk