On Monday, we are devoting the entire day to discussing personal finances, starting at 6 a.m. and ending at 10 p.m.
With the rising costs of groceries and bills, it’s becoming more challenging to manage our expenses.
Financial Coach Connie Portlas, a Dave Ramsey-trained professional, shared valuable insights with KPRC 2 Investigative Reporter Amy Davis on how to kickstart your journey toward financial freedom.
Here are some key tips from Portlas:
Here are some of the biggest tips we gained from Portlas:
1. Monitor your spending habits and allocate funds to specific goals such as a vacation fund, home improvement fund, emergency fund, and savings.
2. Keep a record of your expenses and consider using a credit card for better tracking. Analyze your spending report every three to six months to identify areas where you can save.
3. Implement zero-based budgeting, which means that your income minus your expenses should equal zero.
- Step 1: Note down your total income, including all sources of revenue for you and your spouse (if applicable).
- Step 2: List your expenses. Account for regular bills like mortgage and utilities, as well as irregular payments like insurance or HOA fees. Don’t forget to include other costs such as groceries, gas, subscriptions, entertainment, and clothing.
- Step 3: Subtract your expenses from your income until the result is zero. This ensures every dollar is allocated within your budget.
- Step 4: Monitor your spending closely to ensure it aligns with your budgeting plan. Consider using the EveryDollar app for convenient expense tracking.
4. Eliminate unnecessary subscriptions, such as magazines, gym memberships, and unnecessary Apple charges that deduct money from your account every month.
5. Prioritize debt repayment by starting with your smallest debt and gradually working towards larger ones.
To access free resources and further guidance on managing your finances, you can visit Dave Ramsey’s website