Scenario: I can’t save any cash in my current scenario. How do I go from spending everything I make to saving? Its feels impossible.

What I’d do:

We’ve talked about the first step being understanding your goals.

When you do overspend, it’s helpful to re-orient to the bigger picture goals.

Sometimes, we don’t realize how much we’re spending in certain areas of our lives.

By using YNAB, you’ll be able to create an income and expenses (P&L) report which will show you the golder rule of personal finance.

Make more than you spend.

You must strive to make more than you spend every month. If not, you are either living on debt, living off of an outside source, or living off of your saved assets (best case scenario).

So to go from spending everything you make to saving, you must learn how to manage your P&L!

Engineer your situation so you are consistently making more than you spend.

When you have debt and are trying to pay it off, it feels like your hair is on fire.

“I must do everything I can to get rid of all debt.”

Not so fast…

With student loans, it may be beneficial to hold onto the debt as long as possible since it’s typically a lower interest rate than some of your other debts.

When it comes to contributing to your retirement account, you should always contribute up to the maximum match from your employer first.

After you claim your free money, then consider paying your debts.

Start with paying your higher interest rate debts first and keep making the minimum payment on your student loans.

Who knows, maybe they’ll be forgiven.

I'm afraid for the calendar. Its days are numbered.