Don’t bite off more than you can chew: One of the most common ways people get on a bad financial track is by purchasing a home or car that’s too expensive.
Pro tip: Know how much you can afford. We recommend spending less than 40% of your monthly income on mortgage and car payments.
Buying a house? Check out our homebuyer’s guide for tips.
How do you know where your money is going if you don’t track it? Use the 50-30-20 rule (50% of your income on needs, 30% on wants and 20% on savings) to create your monthly household budget.
Eliminating debt is important, but spending all your money paying it off isn’t very realistic (you still need to keep the lights on after all). Try to keep debt payments to under 40% of your monthly pre-tax income.
Pro tip: Try using the snowball method, a financial planning tool for paying off debt faster.