At the heart of your personal finances is your budget. A budget helps you see how much you spend, what you spend it on, and how much is left over. The next step is allocating as much money as you can to put toward debt reduction.
Start by cutting unnecessary expenses from your budget and paying more than the minimum due each month. Also, ask your creditors if they can lower the interest rate on your credit cards and loans. Equally important is having savings for emergencies. Retirement savings options include employer 401(k) plans, IRAs, and self-employed retirement accounts. These retirement accounts may offer many tax advantages. Having insurance is also important. Accidents, sickness and natural disasters do happen, and if you aren’t adequately insured, you could be left in financial ruin.
Talk to a financial planner to determine a financial plan that fits your life situation.