Understanding your financial situation to be clear about future goals

To get rid of debt faster, you need to know exactly how much you owe. And also imagine how long it will take to repay them. Without this, it will not be possible to draw up a clear payment plan, but it is necessary.

Calculate how many years and months it will take to pay off debts when you can start increasing payments. If you are in a long-term relationship, it is important to know how much debt your partner has, because that also affects you. image.png Source

This will help you understand how much you are spending and saving and plan your contingency fund .

If you have an amount of money set aside that will last for several months, consider transferring it to retirement savings, investments, or some other big goal. This is especially important if you are planning a budget with your spouse.

Remember to keep track of your credit card balance every month. Connect SMS notification or check the balance daily in the banking application. For a good credit history, try to spend no more than 30% of your limit and pay off the debt within a month.

If you could not pay off your card debts in a month, it is important to know how much interest will be charged from you. This will make it easier to decide which debt to pay first and which card to use in unforeseen situations. image.png Source

Remember that money is not the most important thing. And how much you earn is influenced by many factors beyond your control. You shouldn't devote your whole life to making money. Nevertheless, it is important to define goals and strive to achieve them.

Knowing the required amount makes it easier to make career decisions.

Think about what you are working for. If for the sake of financial independence, you need to earn and save a certain amount of money. Then you can retire early or start your own business. If you work to support your family, the salary should be sufficient to meet all family needs.


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