CORPUS CHRISTI, TX – Craig Adamson is a local CPA.
He deals with peoples finances on a daily basis and has helped individuals and companies save a lot of money and get out of debt.
Adamson says the first thing you want to do is set a side money, “you are going to put 1000 dollars away because you are going to set up what is called an emergency fund.”
And the emergency fund should have enough money to cover 3 months worth of household expenses.
And what about those credit cards? They have a way of sneaking up on us don’t they?
Adamson says, “your plan should be to reduce your credit card debt to zero.”
To do that, Adamson suggests a method called debt snow balling , “what you do is get the smallest amount of debt. You list that first to the largest amount of debt and you continue to apply the payments to pay off the smallest amount of debt, and then turn around and apply that money to the next smallest and then to the next smallest until all that debt is payed off,” said Adamson.
And while that may take some time,in the meantime. Adamson says start paying for your goods in cash.
“When you pay with cash, you see the money going out. When you use a credit card you don’t see the money going out you see it. Its just like ghost money,” said Adamson
And while Adamson stresses discipline as the keystone for saving money, he says set aside some money to reward yourself, “set aside in a discretionary fund so you can enjoy taking your spouse out to dinner or maybe buying a gift from time to time. Taking in a movie or going bowling,” Adamson said.
