The Most Effective Ways To Get Out Of Debt and Save (Part 2)

 by: Michael Saunders

Save! Save! Save!: If you can't start saving 20% of your monthly net income or 75% of your monthly disposable income right now, then start off with less, and gradually increase the amount. By practicing money-saving techniques, you will find extra money during the month that you didn't even know existed.

Once It's in Savings, Leave It There: A good rule of thumb for us all: Once it goes into your savings account, leave it there. If you make it a habit of withdrawing from your savings for this or that "emergency," then you will have a hard time building up and maintaining an amount in your account to accomplish your long-term financial goals.

When and only when you are ready to complete one of your financial goals, like to pay off your car or mortgage loan, should you withdraw the money from your savings. By following this simple rule of thumb, you should expect to accomplish your goals and at a much faster pace.

Establish a Cash Reserve: A cash reserve is a portion of your income you've saved that you can fall back on if you ever have to. Hopefully, you will never have to, but it is better to have it if you ever need it, than to not have it and really need it. We recommend that you build up and keep a cash reserve that is equivalent to your living expenses for six months. By doing this, you will have several months to regain financial stability in case of a sudden loss of income.  (continued...)
The Most Effective Ways To Get Out Of Debt and Save (Part 2)
  Page 2

About The Author

Michael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on Credit Repair and Debt Consolidation and is president of Information Organizers, LLC.

Social Entrepreneurship

Grants that Encourage Openness in Philanthropy

Grants that Encourage Openness in Philanthropy

There is a new, seven-foundation partnership established that support nonprofits to become more effective and engaged. The Fund for Shared Insight has announced its first round of grants, which are intended “to encourage and incorporate feedback from the people the social sector seeks to help; understand the connection between feedback and better results; foster more openness between and among foundations and grantees; and share lessons.”

Jobs in the Social Sector

  Foundation Related Jobs
  Executive Director Jobs
  Social Work Jobs
  Social Services Jobs
  Social Work Jobs

Federal Government Grant and Assistance Programs

Edited by: Michael Saunders

© 2008-2020 Copyright Michael Saunders
Click here to open the popup

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.