Francis is 35 years old and earns 25,000 euros a year. Your partner earns 15,000 euros. It has two children whose annual expenses are about 5,000 euros a year. It also has some debts, between car credit and personal loans of 18,000 euros.
As we see Francis’s situation is not very good financially speaking. And yet he wants to achieve a series of financial goals such as giving his children a good education and saving for retirement.
Francis is in a more common situation than it may seem at first. Married, with two children, with debts and salaries that have been affected by the crisis. Saving for the education of your children and for retirement is like squeezing water from a rock.
What can you do if you are in a similar situation?
What can Francis do to get ahead? I await your answers in the comments. For my part, I would like to seriously consider a series of points:
Find out what the most important goal is
And once found, focus on it. Is it your children’s education? Is it retirement ? Choosing one of the objectives is very complicated but with the little money available it is necessary to choose one or the other and try to achieve one instead of staying halfway in both.
Live as if you earn 30,000 euros
That is, 25,000 euros of his salary and 5,000 euros of his partner. The remaining 10,000 euros should be paid to pay the debt as soon as possible. Getting rid of debt soon is vital so that Francis can live more comfortably and without so many worries. And it is something that I recommend to all.
Many people often think that they are doing well with the usual expenses, such as food, electricity and other supplies but then, when analyzing their expenses , it is seen that they can cut much more and in a simple way.
Small tricks such as trying to make a shopping list before going to the supermarket or changing normal bulbs for other ones with low consumption, can significantly reduce expenses.
Be open to new income opportunities
Many people feel satisfied with their income, in the belief that they will never earn more than they are earning at that time.
You should never fall into complacency. It is necessary to keep your eyes open at all times to take advantage of employment opportunities and if you have free time start a business secondary to your usual work.