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Getting comfortable with debt and savings

Posted at 11:46 AM, Jun 23, 2017
and last updated 2017-06-23 11:46:24-04

Life doesn't always go as planned, which is why it's always a good idea to start putting money away in savings for emergencies. However life doesn't always go according to plan, and there isn't enough money in savings to cover the expense.

When there isn't enough money in savings, people reach for the credit card and worry about the expense later. As more unexpected expenses come up, less money goes into savings, and more money adding up into debt.

Michael Markey Jr., co-founder and owner of  Legacy Financial Network, says that if the cycle continues, people will get more comfortable with their small pile of savings, and their larger pile of debt.

It's not a good thing to get comfortable with a huge pile of debt.

Rather than feeling terrible about the huge number on the credit card bill, slowly pay back the debt in small goals. For example if the debt is $2000, work your way down to $1000. Once that debt is constant at $1000, try to decrease it down to $500, etc. Don't try to pay it off all at once if it's not in the budget.

The same can be said for savings, but it has the opposite effect. Instead of losing money, slowly try to increase the savings constant. If the goal is to have $1000 in the savings account, try to keep that as a constant for a few months. If you're able to keep it at that amount, increase it to $2000.

Get more comfortable with lower debt and higher savings, and there will be a lot less stress and worrying in your future.

For more information on how you can fireproof your finances, visit www.legacyfinancialnetwork.com or call 1-855-LFNETWORK.