Tip 2: Determine Your Debt Percentage

Virtually everyone has some form of debt, and that’s not always a bad thing. But having too much debt can cause undue amounts of stress in your life and begin to spill out of control. Debt can easily build upon itself and it is important for you to know how much of your income is going towards it. Do you spend more than 28% of your income on your housing rent or mortgage? Do you spend more than 40% of your income on paying debt?  If so, you should focus on reducing those items or, even better, finding ways to generate more income to reduce your debt percentage.