Personal Finance 101: How to Take Control of Your Money

You and your significant other are trying to buy a house. Things were looking promising until the bank ran your credit scores. Both of you are saddled with too much debt to be able to qualify for a loan.

Paying off your debts is pretty much personal finance 101. It’s hard to manage your money when you’re drowning in credit card payments and student loans. There are ways for you to save each month so you can take control of your money.

We can teach you how it’s done. Check out this guide to learn how to get the personal finance help that you need.

Pay Off Your Debt

The first step to managing your finances to pay off any lingering debts. The more debts you get rid of, the fewer bills you have to pay each month. You’ll also have better opportunities to get a loan for something you need like a house or a car.

Make a list of all your debts and tackle them one at a time. See if you can get a lower interest rate. Try to consolidate your loans or find out if you qualify for student loan debt forgiveness.

Create a Budget

It’s hard to do much of anything if you don’t have a detailed plan in place. Think about how much money you earn each month along with how much you need to spend on bills and other expenses and create a budget that revolves around it.

Once you set this budget, do what you can to not go over it. If you do find that you’re constantly going over, do what you can to minimize your bills.

Minimize Your Bills

The bank may have some things to say to you if you avoid paying your mortgage for a month. There are some bills that you can’t skimp out on. There are ways you can reduce some of them, however.

For example, instead of buying brand name clothes from an expensive boutique, go to a thrift store. Chances are you’ll be able to find the same brands for a much cheaper price. You can buy your food from discount stores as well.

Reduce your utility bills by simply not consuming as much water or electricity. If your phone bill is a little high, change your provider.

Stop Relying on Credit Cards

Using a credit card to pay off a few things is fine but if you’re not careful it can become a crutch. Soon, you start using it to help you pay your monthly bills and you charge the card for way more than you can payback.

This is a trap that many people get caught in. You should avoid opening a credit card or at the very least, only make little purchases with them.

Your Guide to Personal Finance 101

Drowning in debt makes it hard for you to get a loan for things you need. It can even make it difficult for your children to get college loans later on in life. That’s why it’s important to learn a little personal finance 101 tactics and take care of your debt before it becomes a problem.

If these tactics don’t work, check out this post to see a few side hustles that may be able to give you the extra money you need to tackle your debt.







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