The third approach is a financial strategy that has benefited many of our households. It is a simple solution to help address the main financial areas in your life: Debt, Investment, and Lifestyle.
The 3rd Approach
Once you receive your first full pay after your increase, split the extra amount into three parts:
1. Debt Payments
2. Investments
3. Lifestyle
Example:
Say you have a $150 raise. You would increase:
– $50 toward your debt payments
– $50 toward your investments
– $50 to maintain and improve your lifestyle
Application
This method also works when you pay off obligations such as a furniture loan.
Benefits
The benefit of this method has helped countless households that we work with to:
1. Pay their debts sooner
2. Increase their wealth
3. Improve their lifestyle
Conclusion
Adopting the 3rd approach allows you to manage your finances and achieve a more balanced financial life.