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The average American spends about 49 of their income on housing and cars. Looking at this part of your budget can be overwhelming but can have a big impact on your overall financial health. Can you downgrade in these areas or use websites like airbnb. com to turn this liability quick and easy loan online an asset.
Look at your transportation costs. Be sure to choose a used car over a new one and think about public transportation or car pooling. Your goal should be no car payment and minimal housing expenses. Another large expense is debt.
Carrying debt is expensive, with interest rates, charges, fees, penalties and annual dues. Figure out how to pay off your credit cards and other loans.