Are you ready to learn how to pay off debt, earn more and gain control over your finances once and for all?
We’ve got you covered!
If you’re a single woman barely earning enough to make ends meet, it’s far too easy to get trapped in a cycle of debt. That’s why we wanted to create this guide to outline some of the best ways to break free from your patterns and step into a brighter financial future.
Prepare Your Mindset
It may surprise you that the first piece of advice on our list has nothing to do with numbers (don’t worry, we’ll get to that). Before getting into the technical side of improving your finances, you must prime your mindset for success. A healthy mindset can mean the difference between achieving your goals or giving up right before a breakthrough.
For example, how far do you think you'll get if you start your financial journey feeling negative and expecting it not to work out? The key is to believe change is possible and that you are capable of improving your financial situation.
Create a Budget
Creating a budget is popular advice for a reason — it works. A budget is a plan for your money and can be as basic or advanced as you’d like it to be. If you’re new to budgeting, we recommend starting with a simple spreadsheet or blank piece of paper and making a list of all of the money you have coming in (income) and everything that’s going out (your expenses).
Once you have a list of your income and expenses, use this simple formula (income - expenses) to figure out how much you have leftover after your bills are paid. If you don’t have money left over, that means you are “in the red.” Don’t worry — this is why you created a budget in the first place. Now that you know what’s not working, you can create a plan to get back to a positive cash flow.
If you want your budget to succeed — you must find a system that works for you to track your spending. Again, this can be as simple as writing your expenses down in a notebook. Alternatively, you can use an online tracking tool like MINT, which syncs your accounts and automatically organizes your spending into categories. Consistently tracking your spending is a financial habit that will propel your financial success.
Make a List of Your Debts
The first step to gaining control over your debt is to get organized. Start by making a list of your debts — and be sure your list includes the following information:
Try writing your list from memory first, and if you get stuck, check your credit report for detailed information on your debts.
Choose a Debt Repayment Strategy
Now that you've organized your debts, it’s time to decide on a strategy to help you pay them off more efficiently. People typically choose between two main approaches: the debt snowball or debt avalanche.
Debt snowball: The debt snowball strategy is when you prioritize paying off your smaller debts first. After paying off your first debt, you redirect the amount you were paying towards the second-smallest debt, then the third smallest, and so on until all of your debts are gone.
Debt avalanche: Instead of having you pay off your debts in order from smallest to largest, the debt avalanche method prioritizes paying off debts with the highest interest rates first, which may save you money in the long run.
If you want to earn significantly more money fast, you may want to consider learning a marketable skill. If you feel stuck in a low-paying job and want to boost your income quickly, try looking into coding, digital marketing, or other in-demand skills that are relatively easy to break into without a related degree.
Earn Money on the Side
One of the best ways to increase income is to earn money on the side through side hustles. Some of the most common side gigs are:
Though it can take time to earn big with side hustles, the flexibility works for many single women with busy schedules looking to bring in extra cash in their free time.
Final Thoughts
Now that you know how to pay off your debt and boost your income, it’s time to get started! Remember, your success largely depends on your mindset, consistency, and the quality of your financial habits. If it seems overwhelming, start small and take it slow. You got this!
This information is provided for education and informational purposes only. Nothing published by Single Girl Club, LLC constitutes as financial advice and investment recommendation, nor should any data or content published by Single Girl Club, LLC be relied upon for any investment activities. Single Girl Club, LLC strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Making more than your required minimum payment can help you pay off debts more quickly and save money in interest charges. Earmark unanticipated funds, such as your tax return or a bonus, for debt payments.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
Single women with children had a median net worth of just $7,000 in 2019, compared with $65,000 for single women without children. (It was a different story for single men: Those with children sacrificed just $2,000 of their overall wealth.)
Option Two: File a Chapter 7 bankruptcy. The “upside” of proceeding in this fashion is that your Chapter 7 Trustee will not be able to reach your assets either, and the stress associated with harassing phone calls and other collection activities will stop immediately upon the filing of your bankruptcy petition.
With a debt consolidation loan, you borrow money from a lender and roll all of those debts into one loan with a single interest rate. This allows you to make one monthly payment rather than paying multiple creditors.
While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify. The local housing authority pays the landlord directly.
Pay off your debt and save on interest by paying more than the minimum every month. The key is to make extra payments consistently so you can pay off your loan more quickly. Some lenders allow you to make an extra payment each month specifying that each extra payment goes toward the principal.
Determine your debt-reduction strategy. How you attack your debt is up to you. The two most popular strategies are to pay off balances with the highest interest rates first or to pay off the lowest balances first.
Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.
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