How To Manage Money - How One Change A Month Could Get You Out Of Debt

More often than not it's the tiny adjustments over time that produce the greatest difference

. Think about it. If you desired to loose excess weight it doesn't just take place over night. You will need to make modest improvements in your regular diet and lifestyle, and then in time those changes will end up in overall weight loss. How to manage money is the exact same. It is actually the modest changes in money habits compounded with time that will make the greatest difference. If I said a single change each month for a year would get you out of debt, would you trust me? Let us start looking at some tips on budgeting a little closer:

Ask, could you save $10 per month each month for a year? It wouldn't be that hard. All you would have to do is take one cost every month and aim on how you might possibly lower it by $10. For example: if you gave your cable tv company a call and removed some of the options you never use. If you are able to do this for 12 straight months here is what the reward would be: Lets say someone has $5, 000 in personal debt at 18%. Here's the breakdown:

Minimum payment $150/month (3% minimum)

Interest paid $4, 799

Duration 18.8 years

Apply the $10 per month savings onto the credit card:

Balance after year one $3, 197.37

Payments on month 13 $120 (savings) + $150 (Original payment)

= $270

If you apply the $270/month straight onto the credit card it'll take a total of 2.2 years to pay the balance of the credit card debt and you will save $3, 897.33 in interest. If you now take that $270 per month and invest it for 16.6 years you will have $117, 632 in the same time it would take to initially pay off the credit card. If you discover how to manage money and follow effective tips on budgeting, it will make a huge difference in your finances. You can see with this example that twelve little changes distributed over 1 year can make a huge difference in your financial situation. Find out how to manage your money and challenge yourself to generate the minor changes that can make the massive difference. Little steps to a common goal can produce a huge change.

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by: Brandon Schmid

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