Use A Debt Checklist To Examine Where You
Are
By David Wilding.
A Debt Checklist allows you to look at items
and areas of your financial life. You need to examine these to gauge how
you stand. Even if you believe you are in good shape take a close look at
these areas to be sure.
Your Budget.
Almost nobody likes this word, which is why
so many people have problems with their finances and debt. You need to know
how and where your money is being spent. In addition, you should be sticking
to a spending plan.
Your Savings Account.
You should pay yourself each month. To do this
you need have an account in place, in which you keep your funds. At least
until you can move them to an account with a higher rate of return. Visit
your bank or credit union to set one up.
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Your Use Of Credit.
You need to review your use of credit to see
how, what, and where you are using it. Using credit to pay your bills or
buying groceries is a recipe for trouble.
Your Percentage Of Income For Debt.
Nothing makes it harder to stay with your spending
plan than credit card payments. You are paying for your past while trying
to purchase your present. If your percentage of income going toward debt
exceeds 15 you could be headed for trouble. Any amount over 20 percent, you
need to put on the brakes.
Your Minimum Payments.
These add up. If you are to the point where
you ca only make minimum payments on your debts, you will stretch your
indebtedness far into the future. You don’t want to extended like this.
Find ways to add extra to one payment each month. Then when you pay one off
move the extra payments to another.
Your Protection.
You need to put into place and maintain protection
for your assets. Your home, autos, life, and health, need be insured. Make
certain the protection is in line with the value of your assets and the needs
of the people whose lives would be
effected. |
Your Retirement.
Two factors come into play here. You are going
to live longer and life is not getting any cheaper. You should pay into an
account for retirement every month. More is better. If you have been paying
attention you’ll know not to depend solely on social security.
Your Job Skills.
Things change and change rapidly. A constant
update should be part of your plan. You need to be able to obtain better
jobs, or sometimes any job. The more skills you possess the better your chances.
Your Money Skills.
Since money education is not taught in school
you will need to learn on your own. You need to learn to manage your money,
even if you turn it over to others. Become familiar with how credit and debt
works, so it doesn’t work against you.
Once you have taken this inventory get to work
shoring up the areas where you are weakest. Put into place the ones you
don’t have. Then check back every so often to make sure all is well
and as it should be.
(C) 2004 David Wilding.
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David Wilding has for the past ten years worked with groups and individuals
to help them reach the goal of being debt free. Visit his web site
http://www.debtattack.com for more
ideas, tools, and strategies.
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