Debt Consolidation Credit Counseling In Phoenix

Now is the perfect time to be thinking about what to do with extra cash that comes your way. The easy thing to do is just spend it on a big screen television or some other extravagant waste. The better thing to do can be to choose a path that will get you going in the right direction for your future. Here's how:

The first step is paying off as much as possible of all current debts. This will be a huge help financially, since each dollar you don't have to pay someone else is a dollar you can use for yourself. It is often best to pay off high interest debts first, although eliminating small debts quickly is better in some situations. As you get rid of debts, you will feel motivated to continue bettering yourself financially.

Make bigger, better goals. If you really want that big screen TV, then make it a goal and then reach it by setting up an account that you regularly make deposits to. Save until you can make your goal purchase.

Make an emergency fund. Since there is no way to know when you will need money for an emergency, set up an account that earns as much interest as possible that can be used in case of emergency. You should put away enough money to live off of for three to six months. When you receive unexpected cash, put it into a CD and then save it to be used if need be.

Set up a Health Savings Account. If you choose to set up this account in accord with the government's criteria, the account will be tax exempt. You might also decide to open your own savings account and use the money therein for healthcare. Having such an account will help ease your concerns when it comes time to visit the doctor or hospital.

Travel somewhere you have always dreamed of going to. Use your newfound money to travel. If you are able to go on your trip with savings instead of going into debt to pay for it, there will be no guilt attached to your dream vacation.

Start a retirement fund. Put your money into a retirement fund and when it reaches an amount that you determine is sufficient, you can stop working altogether. Thereafter, you can find new ways to make your money work for you.

As you learn to be frugal and have more money to make choices about, find new and lasting ways to spend (or save) that money so that it will build your future and not just enhance your now.