Page 38 - DPSA_SDR Vol 12 No.2 2019

PERSONAL FINANCE

reaching the financial milestones paying off one debt account, move possible. A financial planner can
they want for their family and for their all the money you were paying on also help you with your budget,
own life. the first debt to the next debt and which is another plus.
continue from there, creating a debt-
Congratulate yourself once you pay paydown “snowball effect.” Investing is a long-term strategy that
off your debt! After you are out of helps you to build wealth. You can
debt, though, it’s still important to Once you are totally out of debt, make also find financial help elsewhere,
have a budget. It is easy to spend a commitment to stay out of debt. such as:
more than you make, and if you stop Always leave your credit cards at
tracking your spending, you could home, and save up in an emergency • A local church or community
slide back into debt. fund to cover unexpected expenses centre that offers free or low-
so you do not need to turn to a credit cost classes or workshops
on personal finances and
If you are married, you and your card to cover them. Try these tips to budgeting. Occasionally, banks
spouse need to work together on help you pay off debt more quickly:
the budget so that it feels fair to and credit unions offer courses
both of you, and you both have the • Sell unused or unwanted items as well.
same level of commitment towards around your home to find extra • A mentor that would be willing
money to add to your debt
achieving it. This can go a long way repayment plan. to help you formulate and work
towards helping you prevent money- through your budget for the first
related arguments. Below are some • A second job can help speed few months. This can help you
tips for married couples who want to up the process and may be if you are overwhelmed by the
create a budget together: necessary if you want to make budget process.
fast or lasting changes to your
• Consider switching to an • If your parents or other family
envelope budgeting system that situation. members are good with money,
uses cash for spending areas • Look for areas in which you can consider asking them for help,
that require more discipline. cut your budget to increase the and talking to them about what
cash available for your debt
• Use budgeting software with a payments. worked for them financially and
mobile app so you can enter what they would have done
spending in real time. differently.
• Keep planning ahead to avoid 5. Don’t be afraid to ask Getting debt paid off, money saved
any overspending. for advice and progress made towards your
financial goals doesn’t have to be a
4. Pay off that debt Once you have grown your savings difficult experience. Invest in yourself
and want to begin investing to and your financial future so that you
Debt is a huge obstacle for many increase your wealth, speak to a won’t ever need to worry about your
when it comes to reaching financial financial planner to help you make finances again. n
goals, so make eliminating it a your investment decisions.
priority. Set up a debt elimination www.thebalance.com
plan to help you pay it off more A good advisor will share the risks
quickly. For example, while making involved in each investment, and
minimum payments on all of your help you find products that match
debt accounts, pay any extra money your comfort level and investing
towards one debt at a time. After return needs while helping you work
towards your goals as quickly as

36 SERVICE DELIVERY REVIEW | Volume 12 No.2 of 2019