I have read Mary Hunt and her Debt Proof Living for three years now. She has a good set of financial principles. If you haven’t visited the website give it a try. She may resonate with you. Her basic principles:
www.debtproofliving.com
10-10-80 Plan
- 10% Giving
- 10% Saving
- 80% Living
*Contingency Fund - Savings for emergencies, auto, home, medical. Something to help in those situations we all encounter at some point.
*Rapid Debt Repayment - Set a time goal for paying off unsecured debt. When one debt is paid off automatically put that monthly payment towards the next debt on your repayment list.
*Freedom Account - Personal savings for certain expenses. These would include the yearly bills you set aside money for on a monthly basis.
*Spending Plan - Monthly budget may seem overwhelming to some people. Look at it like a spending plan. When you pre-spend your money and plan for bills ahead of time you will quickly have basic grasp on your finances.
What matters is that you find a system that works for you and you stick to it. Nothing will miraculously change overnight. You need to go at it slow and steady. Look at your debt with 6 month goals. In 6 months you will be in a better situation than you are now...and that is all that matters. Nothing is more empowering (other than perhaps self-employment) than having money saved in the bank and a 401k that you actively contribute to.
