|
Step 4 Taking
Care of Your Money and Credit
So you have started rebuilding your
credit?...
If you are reading this, we can assume you have a computer or access to
one. With this in mind, lets make a deal- you no longer have any
excuses for not taking control of your personal finances. Such as
minding your checkbook, creating a budget, learning to save, opening an
online investment account...and so on. These are easy to
conquer with the use of the computer. It is essential that you
become the master of your money and use it wisely. No matter your
income, you can easily take control of your spending. Create some
savings, and plan for the future.
We already know you are interested in
credit and credit restoration. And you probably think you don't need any
help with your personal finances. But consider this... what got
you here in the first place? And what if you were to lose your job, how
many weeks could you go without income? We also know its tempting to
give up, but we are here to encourage you to take a deep breath
and start fresh! Read about personal finance and how to better
your life through the simple suggestions here.
Simple Rules to Handle Money By:
#1 Never ever bounce a check.
#2 Start a simple budget, and stick to it.
#3 Pay down high credit debt, and begin a savings account.
#4 Open an online investment account, plan for future IRA.
#5 Pay yourself first (deduct for savings each payday)... it will make
your savings easier.
The Budgeting Process...
Keep
It Simple
Remember to keep budget making simple. Don't go over
board trying to develop the best budget you can. Take a
piece of paper and make 2 columns. In column 1 list your
monthly income. In column 2 list your monthly expenses. Both
of these items can be found in your check book. Where
you get money from, and what bills and expenses you are paying
each month. Add both columns, subtract column 2 from column
1. Now see where you are for the end of the month. Are
spending more than you make? Ouch. But how can that
be? How come I am not broke? Hmmmm, maybe you need to
look at your credit card spending too. Often times, we like
to supplement our income with credit card debt. But in order
to really create an honest working budget, we need to abide
by our sole income, the pay check we get each month. Credit
should not become a stop gap in our lives, especially when we are
working and have income. We have created a budget
template for your convenience. But remember this is
only a suggestion. You may have a better way to create a
budget, such as using your personal finance software (MS
Money or Quicken). This is okay... just make a budget! And
stick to it.
|
|
