After recovering from shock at what little is left after taxes, to continue to divide it among all its outstanding accounts with the intention of putting what’s left in their economies.
But there seems nothing to spare and their economies do not grow.
Do not let the money get to their hands.
You may find that you really begin to grow their economies much faster that way.
If you work for an employer with a 401K plan, the first thing you should do is to fund it to the fullest. If you cannot afford that, at least put enough to get the full matching contribution form from your employer.
This investment is made before taxes. Your investment is higher and the employer’s contribution grows rapidly.
Next have a brokerage or mutual fund company monthly debit from your bank account. This money should go first in an IRA – if you have five or more years to go for retirement, make it a Roth IRA.
Then we have a few dollars more to be charged to go into a fund with no load, low-cost mutual. The younger, more aggressive fund of your choice can be.
Once that is done, then figure out how to pay your bills and personal expenses. If money is tight, cut back on their living expenses and use the extra money to pay their debts.
Start with the smallest balance first. Once the debt is paid, take the amount of money they were paying that debt and add it to pay the balance due next lowest. Keep doing this and you can be totally debt free within 5-7 years.
Another version of this method is to pay the higher interest debt first. The principal is the same, you just see more progress with the first method, although it could be more expensive based on how your debt is distributed.
Tt is quite doable with a little willpower and the ability to delay gratification for a while.
The problem is that if you do not, your future could be very bleak.
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