5 Easy Ways to Pay Off Debt Fast

Do you have debt? How big is your debt? Sometimes, we can't avoid having debt due to our unlimited needs.Having a debt is so stressful, there are times that you can't even sleep well, thinking how to pay off your debt. Everyday there are a lot who are struggling paying off their debts.

To help you pay off your debt fast, I round up the 5 best and easy ways to pay off debt fast?

 

5 Best Ways to Pay Off Debt Fast

1. Create a Budget - In terms of personal finance, creating a budget is one of the fundamental things to learn and consider, since, it has great impact in changing your personal finance game. You should create a realistic budget and stick to it. Don't just create a budget but rather stick to it because a budget is useless if you don't follow it. In paying off debt, you must include to your budget a portion intended for paying off your debt. To pay off debt fast it is advisable to try paying more than the minimum. Paying more than the minimum means faster settlement of debt.

2. Organize Your Debt - After you created the budget, it's time to organize all your debts, if you have multiple debts which most of us have. There are two popular methods you can use, the first one is by listing all your debts from the smallest to the largest regardless of the interest rate. The second method is called laddering. In this method, you list all your debts from the highest interest rate to the debt with the lowest interest rate. Either of the two will work, try if what method will work for you.

3. One Debt at a Time - If you are done organizing all your debts, the next tip to pay off your debt fast is to focus on paying one debt at a time, pay first the first one on your list. It will be a motivation if you already pay off one of your debts and proceed to the next one as you can see the progress. Don't pay the extra cash you have to other debts while you are still working on one debt since it is hard to notice the progress if you spread out the payment of your debts.

4. Cash Out Your Savings Account - I know that this not the best idea but if you cash out your savings then it will be easier and paying off your debt will be fast. The good thing is that the interest to your debt will no longer accumulate which is mostly the cause while many are swimming to debts. If you decided to cash out your savings then choose to pay those with the highest interest rates.

5. Make Extra Cash - The fastest way to payoff your debt is by making extra cash. Look for additional job or any side hustle where you can generate decent amount of money to pay for your debt. Right now, you can even find jobs online or at home so making extra cash will be a lot more easier. Check out this article on how you can make additional income online Ways To Make Money Online Without Any Investment.

Photo Courtey: Pictures of Money

Budgeting Tips for College Students

     Being a college student is a hard time for us since it is a transition stage. The time for more responsibilities specially in terms of handling money. The first thing a college student must practice is the art of proper and effective budgeting. College is really expensive, therefore, every student must take consideration of their budget. 

Budgeting is not an easy subject, it is a long and continuous process. Majority of college students can't handle their money wisely and end up broke. Starting to budget is hard but the harder part is sticking to it. That's why only few college students can save money. Every student should learn budget tips that will work for them.

Every now and then there are a lot of requirements to fulfill and expenses to face. To help you with your budgeting I round up the budgeting tips for college students that works. 

Budgeting Tips for College Students

Here are the 18 budget tips for college students:

1. Make a Plan - Planning is the fundamental structure of everything. If you have a good

plan means you already win half of the game. Make a concrete structure of your strategy or lay out every factor that may affect your goals.

2. Set Goals - Setting goals make it easier to achieve the plans you created. Make sure that your goals motivate you to achieve it successfully. You can set a short term or long term goals. Ask yourself, why are you budgeting? 

3. Track Spending - Tracking spending is always one of the biggest factors in budgeting. You must list down all your spending throughout the day for a month and analyze if where you spend the most. This will serve as your starting point in cutting expenses.

4. Know the Difference Between Wants and Needs - Every individual has their own lists of their wants and needs. At this point you must know how to distinguished needs from wants. Your needs should always be your priority and always remember to live within your means.

5. Avoid Getting Credit Card - There are now numerous college students who own a credit card. As far as you can, try not to get credit card since you still don't have source of income and if so, can you use it wisely?. College students are terrible in handling their finances and spending which only means that it's not yet the right time.

6. Don't Abuse Credit Card -  If you are a credit card holder, then, don't abuse it. Only use it during emergencies and other important matters. Having a credit card during college allows you to build your credit score.

7. Pay with Cash - As much as possible learn how to pay with cash. There is a study that if you want to stick to a budget better bring cash than credit card. You spend more when you use credit card.

8. Avail Student Discounts - Shop to stores that have student discounts. Student discounts typically range from 10%-20%.

9. Take Advantage of Freebies - There are a lot of programs and activities conducted in universities like concerts, movie show, theater, plays etc. Instead of watching movies on cinemas or going to clubs better attend free concerts inside the university.

10.  Buy Used Textbooks - Used textbooks cost almost half or 3/4 of the original price. You can find used textbooks on sites like Craigslist, eBay and Amazon.

11. Rent Textbooks - Another alternative is to rent textbooks instead of buying it. You will only use the book for one term or two so its wiser to just rent it.

12. Buy School Supplies in Bulk - Buying school supplies in bulk will help you with your budget. You can sell some to your classmates or roommates. You don't need to go back to store once in awhile that will cost you more.

14. Make a Grocery List - Prepare a list of all the items you need to buy inside the grocery. This will save you time and can avoid you from impulse purchases.

15. Learn to Cook - Cooking your own foods is less expensive that eating outside. Try learning to cook your breakfast and snacks first before jumping to lunch and dinner. 

16. Set Aside Emergency Funds - As early as today you must learn and set aside portion of your money intended for emergencies. This will help you incur debt when something unexpected happen. 

17. Split Costs with Friends - One way to lessen expenses is share expenses with friends. If you're living alone in an apartment ask your friend to live with you and share the rent.

18. Use Budgeting Apps - There are several budgeting apps available for downloads. These apps will help you stick to your budget and track all your spending.

Photo Courtesy: 401kcalculator.org

7 Personal Finance Books You Should Read in Your 20s

It's important that every now and then we are educating ourselves. Money plays vital role in our every day life and specifically in the future. If you have extra time, why not read personal finance books. You can read while relaxing in a coffee shop or during work or class breaks.

The best time to educate ourselves is when we are still young so that we can use it as inspiration while growing our wealth. There are tons of personal finance books we can read but in this post I round up the top 7 personal finance books you should read in your 20s.

7 Personal Finance Books You Should Read in Your 20s

1. The Millionaire Next Door by Thomas J. Stanley and William D. Dako 

The Millionaire Next Door is a compilation of several millionaires profiles. They research about the comparison between they call Under Accumulators of Wealth and Prodigious Accumulator of Wealth. Some of the man points of the book are spend less than earn, spending habits and investing strategies.

2. I Will Teach You to be Rich by Ramit Sethi 

I Will Teach You to be Rich is a book written intended for the regular people. The target of the book is ages 20s to 30s so it's a perfect read for those young adults. Some of the main topics of the book are credit cards banks, investing, budgeting and automation.

3. If You Can: How Millennials Can Get Rich Slowly by William J. Berstien

If You Can: How Millennials Can Get Rich Slowly is consider as a booklet since compare to other books it is way shorter. It is very rich of useful information made for those in their 20s. A great starter book about investing.

4. The Automatic Millionaire: A Powerful One Step-Plan to Live and Finish Rich by David Bach

The Automatic Millionaire: A Powerful One Step-Plan to Live and Finish Rich is a basic finance book and a must read for those starting their journey to financial freedom. Some of the main points of the book are pay yourself first, put away 10% of your money and save even if you have debt.

5. The Investment Answer by Daniel Goldie and Gordon Murray

The Investment Answer is the #1 New York Times Bestselling book for individual investors. An excellent primer for those that are interested in investing. Some of the points of the book are dealing with brokers, asset allocation, relationship between asset and risk and diversification. 

6. The Money Book for the Young, Fabulous and Broke by Suze Orman

 
The Money Book for the Young, Fabulous and Broke is a book tackling about the money matters of the young generation specifically the recent college graduates. Some of the topics of the book are career moves, save up, retirement rules, investing made easy and love and money.

7. You're So Money by Farnoosh Torabi

You're So Money is one of personal finance books you should read in your 20s. Some of the main topics of the book are no more debt drama, banking in bed and scoring, rich people dress good, cruise control and money is everywhere.

Photo courtesy: quattrostagioni