‘Where is all my money going?’

Have you ever had one of those months where you get paid, but you don’t know where all your money went?

Most Americans are in debt due to soaring college costs, credit card debt and the need to keep up with the Joneses. I recently heard of people purchasing a family pet on a payment plan.

Talking about debt can be a difficult conversation most people try to avoid, but you need to have a good idea of how much debt you have so you can create a strategy to manage it. Getting out of debt should be your focus if your debt is spiraling out of control. Calculate your debt and pay attention to the interest you are paying while making minimum payment.

Why is a financial professional talking about debt? A financial professional can create a strategy to help you reduce your debt and achieve your financial goal.

Think about making a budget, list all your sources of income and all your monthly bills to determine your disposable income. If you have a negative number, think about where you can cut costs. If you need help creating your budget, talk to a financial professional or coach, you also can research “creating a personal budget” on the Internet, which can provide valuable information at no cost. After creating your budget, it’s time to put a plan in place.

Here are a couple of options:

Debt snowball. In this strategy, you make a list of all of your debts and start paying as much as you can afford, even if it’s just $5 or $10, on the smallest balance debt. When your smallest balance is paid off, you add that amount to the next balance until you’ve paid off your largest debt.

Debt avalanche. Here, you list debts in descending order by interest payment. Similar to the previous method, you pay extra when possible on the first debt, when that debt is eliminated you roll that entire payment into the next debt.

Not sure where to start? Contact a financial professional or coach, consider talking to someone about a debt consolidation plan.

Claire Damgaard in an agent with New York Life Insurance in Dubuque.

Related Posts


Latest Issue

Subscribe Today!

Subscribe to our Monthly Magazine
Receive her Magazine in the mail on the first Friday of each month!

Latest Posts

Her hacks: Giving the gift of hack
November 29, 2022
Leadership: Give a gift that keeps on giving
November 29, 2022
Reflection: A ‘not-so-Hallmark’ holiday
November 29, 2022
Health & Wellness: Gift-giving and the planet
November 29, 2022
Better bird: Slathering sauces or seasonings over a chicken or turkey before roasting could yield a beautiful result
November 18, 2022

Contact Us

Editorial Content
Megan Gloss, Features Editor
563-588-5638 megan.gloss@thmedia.com

Advertising Content
Dru Sedgwick
563-588-5614 dru.sedgwick@thmedia.com

Mailing Address
her: a magazine for women
P.O. Box 688
Dubuque, IA 52004-0688

A product of:


Her Magazines Newest Stories