7 Actions To Tune Up Your Mula

  1. 1. Take Inventory Of Your Debts
  2. 2. The 12-Month Bunker
  3. 3. Stay In Charge
  4. 4. Don’t Bite More Than You Can Chew
  5. 5. Stop Maxing Out Your Credit Cards
  6. 6. Watch the Housing Costs
  7. 7. Dining Out Will Tear Up Your Finances
Photo Credit: Omar López

1. Take Inventory Of Your Debts

List all of your debts in order from least to greatest and the minimum payments for each. Then, set target dates for the expected payoff date.

Always know the approximate or the exact balance on your debts. I often ask people how much they have left to pay off on their credit cards or car notes, and many don’t know the answer, which is bizarre.

There is no sense of urgency if you don’t know your balance, meaning there is likely no goal payoff date, which means you will be paying interest (wasting money) for an extended time.

2. The 12-Month Bunker

If sh*t hits the fan financially, are you prepared and ready to stand on your own two feet without consistent income sources?

Three to six months of expenses is respectable and frequently all that is needed, but three to six months goes fast when you hit a long-term funk.

Build a 12-month emergency fund; this will make you financially bulletproof in most cases.

This free spreadsheet will help you build your emergency fund.

3. Stay In Charge

Always be the driver of your money. Never allow others to fully control 100% of your money unless you hand them over power of attorney and cannot manage your own money. But as long as you’re mentally fit, you should educate yourself to a point where you can always successfully handle your money.

4. Don’t Bite More Than You Can Chew

Society teaches us to consume more and more to our own detriment, which is why most Americans hold considerable debt.

Accumulation is attractive and a never-ending train. If we can live within our means and consistently not spend more than we earn, we’ve won half the money game.

5. Stop Maxing Out Your Credit Cards

Credit cards are tools to utilize for good. They are not tools to be abused as most people do.

It’s recommended to utilize no more than 30% of your credit card limit each billing cycle. But that number should really be 0%.

For those using credit cards as a business tool, carrying a balance isn’t the end of the world. However, carrying a balance for a shopping or traveling spree is another story.

6. Watch the Housing Costs

Sometimes the places we live in cause too much of a headache because the price is too high. Never sacrifice your financial health for a place to live. There are too many affordable housing options; take advantage. Looks aren’t everything. All we need is a safe and decent place to live. Everything else is icing on the cake — especially when you can afford it.

7. Dining Out Will Tear Up Your Finances

There is nothing wrong with getting a meal outside of your home, but it becomes a problem when you’re charging your meals with your credit card or using cash that should be invested.

I know too many people that spend their money eating out and have no savings.

Flip the switch.

Save and invest first; spend a little on eating out if you have money left. Never compromise your financial position for unnecessary food, though.

Hi There! I’m Destiny. Join my newsletter, and get free books daily. Continue reading more finance articles: here. If you’re not a medium member, sign up.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.