What advice could you give me on getting on the right track to saving and being successful?

Question

I am 23 years old. Lived on my own since I was 18, Havent gone to school yet. I have very little money saved because I started to pay off my debt, from when I messed up when i was 18. I am going next week to enroll in school to start at the end of the month, to be a Floral Designer, which I dreamed of when I was young but forgot about it till I got a knock in the head. So I want to save money and pay off my debt and get my credit better. I am on the way to doing all of this, but what do you suggest? I dont go out and blow my money, only on food and gas and an occasional peice of clothing, which i never pay much for. I dont go to bars and stuff. So what do you suggest? I just want to be happy with what I do

Answer 1

The floral industry has been in a decline the last few years, so think hard about your choice. Maybe look into wedding planning it deals with floral arrangements, but the industry is on solid ground. You can also look at other careers and take assesments to see what type of other careers you might be suited for.

If you meet your bills and can manage it open a mutual fund account and put the minimum in monthly through an automatic system. This will help you save money and keep you from spending it.

Have three lines of credit open at all times it improves your scores and helps you get loans in the future. Make sure your payments are always on time, and don't ever max out a line of credit.

Answer 2

You're on to a good start by not blowing your money on designer clothes and bars.  There are tons of frugal living websites available (just google "frugal living") that can help you with tightening the budget.

As for school, if you can afford to take a few classes, start with some general ones that will apply towards floral design AND maybe another degree if you change your mind.

Also, check out Dave Ramsay's books from your local library - he's a wiz at personal finance.

Answer 3

The best option for debt trouble is negotiating your debts with your credit companies to keep the payments from swallowing all of your income. Typically, you have to get a counseling agency to call on your behalf. If you try to work with them yourself, many of them will not cooperate with you because you are not enrolled in credit counseling. Try http://www.womenindebt.info. Good luck!

Answer 4

It is a very wise move to pay off that credit. That will save you many times over. I am a little concerned when you say you want to "get my credit better." You should pay off you debt and then pay cash not credit. That way you can earn interest not pay it.

As for saving money, write a budget and follow it. Start by writing your goals you you can have something to work toward and see yourself approaching. You say you don't blow your money but you may be surprised at how many little ways there are to waste money; a dollar here and there really can add up. Write what you spend every cent on for the next pay period. Then categorize what you spent it on: bills, food, junk, etc. Check all expenses and trim off the excess. Maybe you buy too many sodas or eat out too much. If you have had the same auto insurance for years, see if you can find a cheaper policy. If you have a cell phone package for 1500 minutes and unlimited texts but only use 500 minutes and 50 texts cut the plan down. Same goes for the home phone as well. Are you paying $60 a month for unlimited long distance and use little to no long distance each month? Change the plan to by-the-minute.

Once you have evaluated how you spend your money and how to reduce your spending, write the budget and follow it. Write a new budget each month or pay period and do a sketch of what is coming in the next month or pay period. You can go back later to tweak it just right if something comes up or changes. To follow your plan keep all money in a bank account, enough for bills in a checking and the rest in savings. Keep in cash only what you intend to spend each pay period. Using the envelop system can help. Designate each envelop of cash for  what it is intended for: gas, groceries, clothes, spending. Don't "borrow" from one envelop into another. This will keep spending in check and ensure that all bills are paid and some is being put up for savings.

If you still aren't getting enough in savings take on an extra shift at work, take on a second job, sell whatever you don't need, do odd jobs like baby sitting or house cleaning. Stay motivated and dedicate yourself to fulfilling your goals and you will get there! Good luck.