The recent worldwide financial crisis has made me reflect about how we manage our financial resources and the reason why we find ourselves in such precarious situations. One of the aspects that most of the people struggle with when they establish a savings/investment plan is temptation. I am not talking about those who saved, created reserves and due to unfortunate situations their savings have been depleted. I am talking about those who have a job, sometimes two or three jobs, they do not seem to have any out of control circumstances, yet they seem to live in total financial chaos. I will say this again...saving money is not difficult at all. You just need to have the right attitude and set some goals for yourself. Say no to the “hand to mouth mentally”, that's teaching yourself to live a poverty stricken life. You must save and create reserves for you and your family, otherwise you will remain the way you are now and never have any meaningful progress in your life.
One of the main reasons we are going through the financial crisis in the United States is that we are expose to temptation on a daily basis. We are infected by the “I want”, “I need”, and “Give me” bugs. Many people are worried about the H1N1 bug, it is something that we need to be aware and address, but where are the news about the number of families destroyed by the “I want”, “I need”, and “Give me” bugs. The family that is destroyed because of the husband that instead of bringing home the hard earned money, he goes to address his personal needs first for a “new toy”, or the wife that wants a new pair of red shoes to add to her collection of 103 different tones of red shoes she has in her closet. Let not forget Junior, who we have not taught about self-control and money management and he is crying “Give me, give me, give me” and we run to give them in our fear that they will develop a case of lack of self-esteem, like the new toy is going to solve that.
Temptation can come in many forms and includes spending money. In today’s society we are constantly bombarded with marketing. Marketing is all around us wherever we go on signs, TV, Radio, Internet, even in our own clothing in the form of tags and labels, it’s everywhere. Marketers are constantly coming up with new ways to expose us to their products and of course tempt us. We are constantly in a race to spend our money, as soon as we have received the money, we are looking for ways how to spend it.
So what can can we do? Temptation involves a choice. I requires that you arm yourself and set war on your temptation. In addition, avoid those places that cause you to spend your hard earned money. You will surprise yourself at how much money you save by doing this. Here is a challenge for you and your family, take a look at your expenses over the past 30-60 days, and find expenses that could have been avoided and make the conscience decision to avoid those places in the future.
In conclusion, money is important in order to survive in this world but it is only a tool. Since it is a tool, do not enslave yourself to it, learn the management of this tool to help you in achieving your goals. Make it a goal for 2010 and beyond to manage your household budget properly.
November 27, 2009
November 16, 2009
Improve Your Credit Score The Smart Way
Having a good credit score is very important in today's society. It is something that many people should have and it is also something that people today would consider to be worthy to be doing just about anything to have a good credit score. By having a good credit score, applying for loans and unsecured credit cards is much easier.
If you already have a good credit score, you will want to boost it in order to obtain the best loan and credit card deals possible. For example, sometimes two points difference in your credit score can mean thousands of dollars in savings from paying interest.
I am talking about the difference between a 688 and 690. This is why it is very important for you to improve your credit score even if you already have a good credit score. It will mean lower interest rates and also more chances of getting the loans you need.
There are several ways on how you can significantly improve your credit score. Some ways takes time to achieve and some takes only a few weeks or even a few days to do. However, if you start working on it as soon as possible, you will see that it will be worth all the effort.
So, here are some of the ways you can boost your credit score:
1.Check credit reports for errors. Even minor errors can significantly hurt your credit rating. So, if you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report.
2.Check the amount of open credit cards you have. Specially those you may have paid off and still show in your credit report. Before you start closing accounts you may want to make an assessment of the impact in your credit score by closing of the account. However, too many credit card accounts can cause a negative impact in your credit score.
3.Pay your bills on time. This will have a positive impact on your credit score because it will show credit reporting agencies and also creditors that you can manage your debt effectively.
4.Manage you credit card balances effectively. Don't use your entire credit limit on each of the credit card you own. For example, if you have credit cards with a credit limit of $2,000, $2,500 and $3,000 dollars, it is better to use 600 dollars on each card rather than $1,800 dollars in one card.
These are some of the methods you can use to boost your credit card score. Following all these will ensure you that your credit score will increase and will result in better opportunities in the future.
I have also prepared a book How to Improve Your Credit Score One Day at a Time, which is packed with valuable information that will help you develop a plan on improving your credit score. Reserve your copy here.
If you already have a good credit score, you will want to boost it in order to obtain the best loan and credit card deals possible. For example, sometimes two points difference in your credit score can mean thousands of dollars in savings from paying interest.
I am talking about the difference between a 688 and 690. This is why it is very important for you to improve your credit score even if you already have a good credit score. It will mean lower interest rates and also more chances of getting the loans you need.
There are several ways on how you can significantly improve your credit score. Some ways takes time to achieve and some takes only a few weeks or even a few days to do. However, if you start working on it as soon as possible, you will see that it will be worth all the effort.
So, here are some of the ways you can boost your credit score:
1.Check credit reports for errors. Even minor errors can significantly hurt your credit rating. So, if you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report.
2.Check the amount of open credit cards you have. Specially those you may have paid off and still show in your credit report. Before you start closing accounts you may want to make an assessment of the impact in your credit score by closing of the account. However, too many credit card accounts can cause a negative impact in your credit score.
3.Pay your bills on time. This will have a positive impact on your credit score because it will show credit reporting agencies and also creditors that you can manage your debt effectively.
4.Manage you credit card balances effectively. Don't use your entire credit limit on each of the credit card you own. For example, if you have credit cards with a credit limit of $2,000, $2,500 and $3,000 dollars, it is better to use 600 dollars on each card rather than $1,800 dollars in one card.
These are some of the methods you can use to boost your credit card score. Following all these will ensure you that your credit score will increase and will result in better opportunities in the future.
I have also prepared a book How to Improve Your Credit Score One Day at a Time, which is packed with valuable information that will help you develop a plan on improving your credit score. Reserve your copy here.
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