While the majority of Dallas bankruptcy cases are not caused by mismanagement of funds, there is still much to be gained by boosting money management skills. The truth is, we could all use a little help with saving money and preparing for a rainy day in finance.
Ready and Willing
Smart money management can be broken down into two important parts: preparation and purpose. Most people find themselves in over their head simply because they failed to prepare for hard times. No one expects to lose their job or suffer from the inability to work, but it happens. If you don’t have an adequate savings, even a month or two without income can leave you in default, at risk of foreclosure or pursued by debt collectors.
- Have at least three to six months of essential monthly expenses saved as an emergency fund.
- Reduce your debt balances and boost your savings or retirement account.
Even if you have some money saved for the unexpected, most people still have little purpose for their money. Making minimum payments will keep your account out of delinquency but it does very little for your financial future. If you are not experiencing a financial hardship, put your money to work and stop living with mediocrity. Instead of paying off your debt balances making minimum payments, pay as much as you can to get it paid off quicker. Or, continue to pay the minimums plus save the extra money to boost your emergency fund or retirement account. It’s never too early to plan for your financial future.