What tools are there to help you obtain Financial Freedom?

financial freedom

If you find yourself financially suffering from the current state of the economy, you should know that you are not alone. The current economical slump is affecting almost everyone.

 

Most people reach adulthood without ever taking financial courses. Fortunately, there are many financial tools online that can help you get out of debt and start saving money.

 

Many people spend huge amounts of money paying financial advisors and accountants to tell them what they should do with their money. If you are experiencing financial difficulty, save your money and start learning about the financial world on your own. The internet is your best friend when it comes to research, so use it to educate yourself.

 

Some of the greatest financial tools that are available on the internet are financial calculators. Before you make any monetary decisions, always use a search engine to find a calculator that applies to the situation.

 

For example, a mortgage calculator is an extremely useful tool and can help you save tons of money. Calculating the total cost of the mortgage over the entire payment term as well as the cost of monthly payments is very complicated.

 

Mortgage calculators calculate your monthly payments and the full cost of the loan for you. All you have to do is enter in the interest rate and the borrowed amount and the mortgage calculator will do the rest.

 

A mortgage calculator is extremely convenient if you are considering purchasing a new home. Since they calculate monthly payments, you can figure out exactly what housing price range you can afford.

 

Budgeting spreadsheet tutorials and templates are also available online. Microsoft Excel and other spreadsheet software can be very confusing if you are unfamiliar with financial jargon and formulas.

 

The internet has plenty of tutorials that provide step-by-step, image-by-image instructions on how to create a budget using spreadsheet software. For example, if you are having trouble figuring out how much interest will be charged on your credit card each month, type “how to calculate interest in Excel” into a search engine.

 

Budgeting spreadsheet templates are also available online. You can download pre-made spreadsheets that already have all of the formulas entered in. With a budgeting spreadsheet, all you have to do is enter the numbers that apply to you into the boxes. The spreadsheet will automatically calculate everything else for you.

 

Figuring out your debt-to-income ratio can also help you work out what you need to do to get out of debt. This ratio, called the DTI, is a number that represents the amount of debt you have compared to your income.

 

Many lenders ask for your DTI when you apply for credit. If you are preparing to apply for a credit card or loan, make sure that your DTI is decent beforehand.

 

Free DTI calculators exist online. These calculators ask for your total monthly income and your total monthly debt. Using this information, they calculate a number that represents your DTI.

 

For example, if you have $1,500 of recurring debt each month and you receive $2,000 worth of income each month, your DTI will be 75%. If your monthly debt is $2,500 and your monthly income is $2,000, your DTI is 125%.

 

Your DTI will give you a general overview of your current situation. If your DTI is above 100%, you should create a budget spreadsheet and try to work out how you can cut back on some of your expenses.

 The above was a guest post on behalf of Money Supermarket and was written by financial writer Andreas

 

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Category: Financial freedom