MYRTLE BEACH, SC (WBTW) – Financial Planner Scott Pyle joined News13 NOW on Wednesday to talk about a second phase to gaining financial independence – taking action after setting a budget. Watch the video for details.
The following are some of the questions covered during the segment:
1. After someone is able to establish a budget & put basic spending restrictions in place, what can they do next to start moving toward financial independence?
Answer: Establish an emergency fund
a. Make your initial goal $1,000
b. Ultimately, you want to save as much as you would make in 3 to 6 months. So if you get paid $2,000 per month, you want to save $6,000-$12,000
2. An emergency fund is so important as life happens. What can our viewers do on top of that, or as a way to save money?
Answer: Control and Manage Debt
Using credit cards as an example, list credit cards by interest rate. Make the minimum payment on cards with the lowest interest rate. Prioritize higher-interest credit cards, and work to pay them off sooner.
3. In this “action phase” of financial independence, is there anything else that you would recommend folks do?
Answer: Create a surplus
If you’ve met your initial savings goal, you will have additional money to spend or put into other types of savings.