How is a 7-night cruise around the Caribbean or the Greek Islands on your retirement sound to you? How about exploring one of the National Parks in the United States? Or, simply enjoying your medium roast drip coffee while seating at the veranda of your beach-side one-storey ranch retirement house? Supreme isn’t it? Yet how do we set aside enough money to enjoy such when we are torn between these two competing priorities – banking and paying off debt? If getting over your credit card debt or fixed-payment loans takes precedence over saving, it may delay your target time frame, yet you would have a bigger amount to put in your account in the future. But if you prioritize saving over the other, you will be able to reach your target digits timely, but your debt interest will continue to mount up and would eventually give you additional obligation in the long run.
The following will help you get rid of your debt at the same time increase the numbers on your bank account.

How’s Your Budget Going? Be Tougher Than Your Excuses

Impulsive shopping will harm your dollars.

Plan your expenses wisely. List down all your must-buy and identify what needs to be put aside to at least make more room for your savings. Going on a shopping with a guide and sticking to it will prevent you from being reckless at buying something.

On time means late. 

Practice settling your bills ahead of the due date to avoid forgetting them. As being late will cause you further interest and money, in which could be better be laid on your savings or on the other payables instead. One good example is, avoid opting on minimum payment due when paying your credit card debt. This will only give you a lot of extra interest on the next bill cycle and will surely be an added headache.

Additional earnings are for extra expenses. 

Nothing can be more ideal than living within your means in order to cope up with the expenses at the same time pay-off debt. Nonetheless, earning extra by finding other ways to make more dollars would be the smartest way to at least afford the other needs that you might have removed from the list. Also, having a spare job would also help you pay off your debt quickly or in less time.

Financial surprises shouldn’t be a worry. 

Medical expenses, car repairs, home repairs or even a job loss can be very stressful as it will definitely add up to your debt. However these can be covered by having an Emergency Fund. The said fund, at a minimum should consist of three months of your living expenses or six months of it if you have dependents, says Holly Perez of www.money.usnews.com. Setting aside comfortable amount from your monthly pay or keeping those extra pays like tax refund would be a smart start to complete the target total. Remember to always keep in mind that this fund should be strictly for emergencies only.

Prepare for that dream retirement. 

You should never take saving for your retirement as your last priority. Denise Appleby of Investopedia.com stated four considerable reasons why you should save for your retirement. 1. Not to rely on Social Security. 2. Not to be a burden on your children. 3. Access to a tax-deferred account, in which your money will work for you. 4. The reward you get from investing in that account would be an ideal retirement for you. Your money will go up quickly because the amount that could have been taxed get reinvested and will let you earn more. Another question would be, how much should you allocate for this retirement savings? As per CNN Money, it is recommended by most financial advisers to invest 10-15% of your income to this savings.

Consider a Debt Relief Program. 

Consulting experts and experienced negotiators under debt relief program would be a huge help and a wiser option in dealing with your debt. This will allow you to settle your debt in multiple payments that is significantly less than the owed amount. Also, mulling over Debt Relief Program will give you more time to focus on your saving goals rather than thinking too much on how to deal with your collectors. They will have the creditors contact them instead and deal with it on your behalf

Final Thoughts

Getting over debt at the same time hitting a scale on your bank account can’t be done in a matter of no time, it entails an effective planning on where to put your money and end up living a life in your favor. Sticking to your target figures won’t be that hard if you have a constant amount on your emergency fund as it covers the expenses you don’t want to get into your debt and saving goals. Remember to always regard your extra earnings to the most important one rather than to spend it on the latest phone units or new pairs of shoes. You would definitely want to go on retirement as early as in your 40’s, think about it as your motivation to keep an eye on the prize. Visualize yourself achieving the goal no matter how overwhelming it can be. This will definitely help you avoid hovering on unhealthy spending habit that will eventually delay you from reaching the aim and at the same time add you more load of debt to settle. It is truly not impossible to save money while taking care of your obligations. If you have the willingness and consistency to crash down your wants and turn the spotlight more on the needs, hitting the bull’s-eye on your finances wouldn’t be as tough as it can be.

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