That’s why Royer says if you have revolving credit cut your spending until you are out of debt. “Pay off what you are charging at the end of every month because compound interest is a killer,” said Royer. “You are paying interest on the money that you spent on the item that you bought and then you are paying interest on the interest. “ “You don’t want to save until you’ve actually been able to get out of debt,” said Royer. “That doesn’t help. If you are saving money and you are making 4 percent but your credit cards are at 20 percent you’re going backward.”
“You got know where you stand right now, unfortunately, a lot of people don’t know what that is and you can go on google and you can type in how to figure out my net worth and it can help guide you to figuring that part out,” added Royer. The second is to find out what your net worth is.
One thing Royer says you should do to make sure your finances are doing well is to not have any revolving credit. “That means 60 percent of people are spending money and they don’t even know where it goes,” said Royer Master Registered Financial Consultant.
Source www.wlfi.com A mistake Royer says many people make is that once they get more income they don’t save more they spend more.He says when you start to make more money make sure you don’t spend more instead save the same percentage as you were before. To hear more of his advice click here.
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