Step1It is best to learn financial planning skills early in life to help to avoid financial pitfalls but here are some tips for those of us who are learning the hard way.
Step one is having both short term and long term financial goals. Without this you are just swimming against the tide.
Step2Second is to have a realistic budget and to live within it. This schedule should be structured around the basic necessities such as housing, automobile expenses, etc. but should also allow for occasional splurges.
A good rule of thumb is to spend a third of your income, save a third and invest the rest.
Step3Third is to avoid falling into credit card debt. Use credit cards to help build up your credit score by using only a small portion of their limit and paying them off to avoid interest fees.
Step4Forth is to change your ideals. Excessive materialism brings very temporary satisfaction and contradictorily causes long term stress.
Become determined to work within these guidelines and within a relatively short time you will begin to feel the weight being lifted from your shoulders.
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