The Final Steps of the Financial Fitness Plan

This month, we finish the series on personal finances for the Millennials as we discuss finalizing a debt management plan and creating a financial fitness plan.

With debt management, the load should be sustainable. Remember to utilize the 50/30/20 budget guide. Twenty percent of the budget should go to debt repayment and savings. Once you pay off loans, the extra payments can be put into savings. Avoid applying for credit when students loans are being repaid. Don't carry credit card and other high-rate debt. While using credit cards, pay them off fully. You may incur high interest on those outstanding balances. Payoff very small balance loans first and then large balances next to reduce the amount of interest that is being charged. The bottom line is to live within your means, according to your budget. Getting into debt can have a negative impact on your credit.

The financial fitness plan is the final step in the personal finance process. The major categories include saving, financial goals, budgeting, and debt management. Retirement, insurance, and real estate planning as well as estate and tax planning are other areas that should be addressed by experts in those particular fields when assistance is needed. Most Millennials focus more on debt because it is easier to come by. However, they should be encouraged and coached by parents, educators, and management to have a more balanced and healthy personal financial life.

You can learn more about personal finances on my website at www.fheducators.com and download my free budgeting tool.