One of the hard truths about turning your financial life around, particularly if you don’t have a high income, is that financial progress feels really slow. You do make progress in the right direction, but there’s a lot of “three steps forward, two steps back” mentality and the steps forward are incredibly slow. You can make good financial choices for months and feel as though you’re barely making any forward progress on your goals.
There are a lot of reasons for this. Here are three big ones.
First, many financial goals are quite big compared to the resources available. If you’re trying to pay off debts that add up to a year’s worth of income or more, it’s going to be slow paying it off no matter what you do. If you owe $50,000 in debt and work really hard to free up an extra $100 a month, you’ll get rid of that debt faster, no doubt, but the reality is that you’re only cutting away 0.2% more of that balance … Read More