Tips to get out of Debt

Financial Planning

• Setup an emergency fund, savings account, retirement, college fund  
• Buy health, life and disability insurance  

 
Retirement Plan/401(K)
 

• Allocate the maximum (usually 10% of your paycheck) to your retirement plan or 401(K).  

 
Savings
 

• Save at least 3% of your paycheck to a savings account.  

 
Emergency Fund
 
·         An emergency fund should be enough savings to pay your bills for at least 3 to 6 months. Emergency fund should be readily accessible and stored in a checking or savings account, preferably a high interest savings account such as Emigrant Direct or ING 
 
Reduce Expenses
 

• Expenses can be reduced by: bringing your lunch to work, canceling your pager, internet, cable or cell phone service or get the cheapest plan available, carpool, catch the subway or bus to work, use coupons when buying groceries or shop at wholesales stores and sell unused items at a yard sale or donate to charity.  

 
Create a Budget
 

• Having a budget makes you responsible and accountable for your finances.  Once you create your budget you can easily see if you have too many expenses or if your money is not being managed properly.  The easiest task to accomplish this is determining if you have too many expenses, you simply cut down on your expenses to gain additional money.