Over time, your living expenses will change. So, if you haven’t already made a plan for the future, establish some short- and long-term financial objectives.
The most reliable way to eliminate debt is to avoid spending beyond your means, particularly with credit cards. Ideally, this will allow you to pay your bills in full and on time each month and avoid racking up interest on balances carried over from one statement period to the next.
Whether you lease or own, the most common rule of thumb is to not spend more than 30% of your gross monthly income for housing. This amount — which includes rent or mortgage payments, utilities, insurance, and property taxes if you own a home — is what you or your family can reasonably spend and still have enough money to comfortably pay for other expenses.
Deciding how (and if) to combine your financial resources with a partner or spouse should depend more on your personalities and spending styles than any beliefs about splitting things evenly down the middle. Read this guide to money management methods for couples to get a handle on the options.
Life is filled with surprises, which makes it impossible to prepare for everything that lies ahead.
However, by asking yourself some basic questions, revisiting them from time to time, and adjusting your answers when needed, you can put yourself on a path to personal financial success now and for years to come.