When it comes to people’s top financial goals for 2021, Country Financial’s 2020 Security Index Report found that controlling spending, saving for an emergency, paying down credit card debt or student loan debt, and saving for retirement were among top goals.
Once you know your goals, drafting a monthly budget becomes more manageable. Document up to three months’ worth of expenses and then break the list down into fixed costs, variable costs, necessary costs and discretionary costs.
The avalanche method prioritizes high-interest debts by ranking the interest rates from greatest to least. Then, regularly pay the minimum on each of your debts, and put any leftover funds towards the one with the highest interest rate.