Scott Lamb is the CFO for TruVision Health™. He and his team work on the corporate side of things by managing the company’s finances, financial planning, record-keeping, and financial reporting. We decided to ask him his advice when it comes to financing and getting out of debt.
We have a new program called “Trim that Debt” which simply adds on another layer to “live better.” This program allows Associates to register and commit to paying off a debt. If you are in debt more than $500, you can enroll and commit to a date on having it paid off. (and of course, if needed, that date can change)
As time goes by, we will be cheering you on and checking in to see how things are going. Once the debt is paid in full, we will email you a banner and mail you out our custom made “trim that debt” scissors. If you choose, you can then send us a picture of you “trimming” up the bill or card and we’ll showcase your picture and story online. There’s no better feeling than knowing you’re financially independent and TruVision Health™ wants to help you get there!
To register, simply login to your Back Office and on the navigation bar, you can click on the “trim that debt” link. Then simply fill out the form and click submit. Or you can go there by clicking here.
Trim That Debt Tips: Scott Lamb
50/30/20 Rule: This financial rule is to help individuals divide their after-tax income into categories to ensure both long-term and short-term needs are met.
Limit your “Needs” to 50% of after-tax income
You must differentiate between which expenses are “needs’ and which are “wants.” Basically, any payment that you can forgo with only minor inconveniences such as your cable bill or back-to-school clothing is a “want.” Any payment that would severely impact your quality of life, such as electricity and prescription medicines, is a “need.”
Limit your “Wants” to 30 percent of after-tax income
30% sounds like a significant amount until you remember our definition between a “need” and a “want.” As a reminder, a “need” is any payment that would “severely” impact your quality of life.
Spend 20% on savings and debt repayment
All minimum payments on credit cards, home loans, or other needed items are considered a “need” and are included in the 50% we have already carved out. Any additional payments such as paying above the minimum credit card payment, paying additional cash towards your mortgage, or any other payment that lowers the principle on your debt would be considered part of the 20%. Additional items included in this bracket would be putting money into savings, retirement accounts, emergency funds, or any other activity that lowers your debt or increases your savings account.
Following the 50/30/20 rule will ensure you never spend more than you make while allocating enough funds to live a sustainable lifestyle while putting money way for the future.