Are you in tough times right now? You might be suffering from a recent job loss or under a mountain of consumer or student loan debt. Remember to go back to the four walls. If this sounds like you, then you are not ready to begin Baby Step 2, the debt snowball. Your first step is to stop everything and pile up any cash you might have. Stack it as high as you can stack it.
Your next step is to create a zero-based budget that focuses on the four walls. A zero-based budget is created by taking all of your income, subtracting all of your expenses for the month and that number should come out to zero.
What are the four walls you ask? They are the four essential things you should focus on in this order:
Food
Shelter and Utilities
Transportation
Clothing
If you have more going out than coming in, build your budget around these four items first. Anything else only paid gets after the four walls are met and you can fit it into your zero-based budget.
I know it might be scary to stop paying your credit cards but keep in mind this is only temporary while you get back on your feet. Plus Bank of America does not care if your kids have enough to eat, or if you have a roof over your head. You need to take care of your family first, then deal with Visa or Mastercard. It could also take awhile (90 days) before they start to reach out to you.
There is hope, you can do this! You can take control of your finances now. Need help figuring out what to do next?
Book a free consultation today.
Thank you!
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