Tips to Grow Series -#1

Tips to grow 📈

Pick a debt payment method 💵

Do some research and find the method that works for you. Here are two types of debt payment methods, the Snowball and the Avalanche methods. Both methods were created to help you pay off your debts in an easy organized way!

Snowball Method
This method is used by Dave Ramsey. Focuses on paying the smallest balance first. This helps you build momentum quickly! Once one debt has been paid, then move on to the next and so on.

Avalanche Method
This method focuses on targeting the highest interest balances first. This option saves you more money in the long run.

You can always mix the two methods to create a system that works for you! No matter what method you choose, you still must pay the minimum monthly payments.

Pick a Debt Payment Method

Take advantage of a Budgeting App

One of the more well-known budgeting apps is EveryDollar.

EveryDollar is a free budgeting app built by Ramsey Solutions - the organization behind Dave Ramsey, the personal finance media personality/book author.
EveryDollar relies on his money principles, known as the Dave Ramsey Baby Steps, and the debt snowball repayment technique.
How Does It Work?
EveryDollar uses the budgeting system known as zero-based budgeting. In zero-based budgeting, you assigned every dollar to a category. It's very similar to envelope budgeting.
This is where you input your monthly income and plan your entire month's spending ahead of time. You set up budgeting categories and then allocate your income to those categories.
Then you use the app to track your spending daily. If you have the free app, you manually enter your transactions. If you pay for EveryDollar Plus, you can link accounts and it'll automatically pull in transaction data.
If you're a fan of Dave Ramsey and his approach to money management, EveryDollar is an easy to use tool to help you manage your money.
The free version doesn't give you transaction downloads, which forces you to manually enter each transaction, which isn’t necessarily a bad thing because it gets you closer to your spending. It's free and quick to set up so you can check it out for yourself.
I use this app myself and found this you tube tutorial helpful in getting started.

Enjoy managing your spending,

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What I Own What I Owe

Before you can make any plans for your financial future, you have to figure out where you stand today.

Use this form to help determine your net worth, then sit down with your advisor and plan for tomorrow.

Jodi Dark

Take Control of Debt

A successful four-step formula - reprinted from Fidelity Investments
  
Over the last decade, Canada has become addicted to debt. According to a March 2004 report issued by Statistics Canada, for every $100 in disposable income, Canadian households owed an average of $102.90 in debt including consumer credit and mortgages.    Obviously, owing more than your income is rarely a good way to achieve financial independence. So if you find yourself having difficulty staying ahead of your bills, take heart. There are ways to reduce your debt and take back control of your finances. Here are four simple steps to help get you started.    

1. Assess your situation
The first step to getting out of debt is to assess your current situation. Answer the following questions for yourself: What debts do I owe? When are they due? At what rate of interest? After you’ve compiled a catalogue of your obligations, ask yourself how much you can reasonably put toward each of those debts each month. Writing this information down will put your situation into perspective, and provide you with a roadmap for regaining control of your finances.  

2. Control spending 
It’s hard to reduce your debt without setting limits on your spending. Give yourself a specific amount of money to spend each week on essentials as well as miscellaneous expenses. Withdraw this amount in cash at the beginning of the week—do not use credit cards! Once you’ve spent your allowance, you’re done for the week. This “get tough” approach will slowly wean you off of credit.    

3. Track your spending
To prevent yourself from sliding into debt again, you must understand how you got into trouble in the first place. You can do this by tracking your expenses for a specific time period—say, one month. Keep a small notepad with you and make a note of every dollar that leaves your wallet. Once you see how you're spending your money, you’ll be in a better position to change spending habits and trim unnecessary expenses  

4. Consider a consolidation loan
If your debts are substantial, consider a consolidation loan. By lumping smaller debts into a single, large debt, you can keep better track of your progress. More importantly, consolidation loans are often available at lower rates of interest than credit cards and other loans. That could help you shave months off your payment schedule.  

Staying debt-free over the long term
Understand that financial freedom isn’t a one-time event. Rather, it is an ongoing process that requires patience and discipline. In the end, whether you’re successful or not at reducing your debt depends largely on making a lifelong commitment to being responsible with your money.  

Jodi Dark