Self-guidance, with personal finance, can be a challenging task with so many elements in motion whether it’s stress brought on through your job’s pay or managing your taxes. There are plenty of tools and services that will aid your progress through the financial “muck” but the best beacon of clarity comes from your personal choices for managing (and getting out of) debt.

Education is the Light

Education is the key component to surviving financial insecurity.

You can’t predict life and the wild curveballs thrown at you but you can certainly prepare for the worst – especially in your finances because all it takes is a little education on your part in order to gain a better command over your money.

You could go to a tax professional or you could grab the bull by the horns and take control:

  • Know your income – Know how much you’re actually bringing home after taxes
  • Know your debts – Know each and every expense that’s leaving your account
  • Set a schedule – Plan when you will pay each bill, on time, so there’s no overlap
  • Choose a method – Find a system that works for you in paying off your debt
  • Stay motivated – Learn how to entertain yourself and feel comfortable with sacrifice
  • Seek support – Lean on friends and family for support through the rough times

One of the best investments you can do, right now, is to take the afternoon to read through as much financial advice that you can handle. Consider purchasing a few of the best-selling, top-rated books on Amazon, talk to friends about finances, go onto forums and ask for suggestions about debt, or call government helplines that will give you traction toward debt-free living.

Your financial education will give you a guiding light from the darkness that is debt; tap into the wonderful, free resources plentifully available through this amazing tool we call the Internet and make the decision to escape the dark waters this very moment.

Financial Goals … the Direction

Understand that the path to a debt-free existence comes from making hard sacrifices to your everyday routine. Yes, you will need to give up on many a vice, cut back on expenses, cancel subscriptions, and remove those financial ticks that are sucking at your wallet.

Set a financial goal:

  • Decide when you will be completely debt-free (the exact day)
  • Break down how you will achieve this goal
  • Write it down and stick it to the wall for a constant reminder

What you may want to consider is going through the tool provided by MyMoneyCheckup which is a free service offered by the National Foundation for Credit Counseling that will give you a realistic examination of your current standing with finances (and sensible actions to escape debt).

Go over to MyMoneyCheckup.org and proceed with the following:

  1. Sign up for a free account (make sure you set a strong password)
  2. Work your way through each of the questions on the “quiz” and answer truthfully or as close as you can (this would be a good time to dig out your financial records)
  3. Allow the tool to run the report and spend 30 minutes to 1 hour to examine the resources for those areas marked in red (the most important items) and then through the yellow.

If you’re a Spanish speaker, they just released a new version for your language.

Word of the wise: download and share the PDF-version of the report with your closest friends and family as they may have a wealth of wisdom to offer to handle these financial downfalls.

After you’re doing with the report, you should begin forming your budget with your new found education in finances. Lay out the important details of your income, savings, and expenses; use the financial calculator (presented after the report) to make appropriate changes to the budget.

From there, just keep working at it. Contribute a little more each chance that you can toward knocking down that debt. The first month or two will seem like hell because you’re missing out on so many fun activities but think of what will come about after the debt has been completely eliminated … that’s right … financial freedom.

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misavingsmama

I am a Single mom of a 6 year old lil man. I work full time away from the house so I am always on the lookout for new things that will make my life easier!

  3 Comment to “Building a Financial Beacon to Stay Out of the Darkness of Debt”

  1. Knowledge is power! I’d also add to think about what would happen if a major appliance or vehicle broke. It’s scary to think of, but it’s helpful if you’ve carefully considered what you’d do in that situation when you’re not in that situation and so can think calmly.

  2. My husband and I have to go through all of this again soon he wants to try for a new job but there will be a pay cut. We always have a list of what we need or need to get done and we try to stick to it.

  3. Great advice, I need all of the help I can get as a single mom of 2, it’s so easy to get behind. Thank you for this informative and important post.

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