Wallet Wednesday: Taking action after setting a budget

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.

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