Slow and steady does it.
Yes, getting into debt is easy enough, maybe even a quick process. Getting out of it, on the other hand, is an entirely different story. The fact is, unless you come into a fortune overnight and pay off your debt in one fell swoop, you likely will have to live it with it for a while. More importantly, you also have to take action and make some difficult sacrifices and changes along the way.
But despite the obvious setbacks, there’s really no question that addressing your debt must be a huge part of financial planning. Know that it can be all too easy to make possible mistakes along the way. For this reason, it’s always prudent to have a solid plan as you tackle your debt.
Consider looking into financial coaching, which can help you create a debt repayment plan that truly works for you. This way, you don’t end up biting off more than you can chew, plus you stay motivated and accountable. And the best part is that through Qoins, you can get matched up with a financial coach who’s a simple tap away on your smartphone.
Plan for the worst.
Now, do realize that financial planning involves a lot of hoping for the best while also planning for the worst. No doubt, the worst-case scenario is something untoward happening to you prematurely, leaving your family unsupported financially or, worse yet, holding a bag of hefty medical bills and other debts. This, however, is likely something you don’t think about much—or at all—at a young age, but the fact is, it could happen.
With this in mind, it’s only smart to have measures in place to prevent such dire consequences. So yes, as morbid as it may sound, planning and paying for your funeral as early as now can be a very good move. Doing so will all but ensure that your family is well-taken care of financially in the event of your death. Moreover, you also guarantee that they won’t bear the burden of funeral costs on top of their grief, which can be a real godsend as funerals commonly cost $9,000 or more. As a bonus, you get to make sure that your final wishes are carried out, so you have a funeral that fits your preferences when the time comes—and at the best possible price, at that.
Save for rainy days.
In that same vein, it’s also wise to move towards building an emergency fund as part of your financial planning efforts. There are, in fact, so many reasons why you should have one—and zero reasons to the contrary.
As the name suggests, an emergency fund will essentially cover unexpected expenses, running the gamut from home or vehicle repairs to medical emergencies. Not only that, but it can also work hand in hand with debt management as you certainly won’t end up sinking deeper into debt if something untoward occurs when you have the cushion of an emergency fund to fall back on.
Suffice it to say, financial planning is a many-faceted thing and must be approached in earnest. However, it is, in itself, already a reward. After all, with financial planning, you’re basically putting money into your peace of mind and your family’s well-being. It’s truly the ultimate step to adulting and one that you should take today.