Viewing: Budget - View all posts

From Multiple to Maxed 

Its okay to have more than one or two credit cards but there are certain stipulations to making them work to your benefit. 
If you've had trouble with debt before because you've lacked some level of spending discipline then hold off on trying this a bit until that is addressed. If you're ok in the disciple department or you keep an ultra low balance on your one credit card then know it will not hurt your credit if you have another. Once you have it your biggest job is to make sure you do not ever keep a high balance on either one. 

It shows you can manage a large sum available to you without going crazy. If this happens and you keep everything else with your money in order, you should see some improvements in your credit score.

High Interest vs. Lowest Balance 

There are 2 popular methods to paying down debt. Choose one of your debts and pay more on that one, starting with the one with the highest interest OR the one with the largest amount. 

The highest interest may seem to take longer but will result in you dishing out less overall in interest payments. 

Decide on a method today if you haven't already and crush it!

Can You Buy It Twice? 

Tax Season is coming around and after the deductions from your business and the money back from your job withholdings, you might be getting a nice little stack of change. Something to remember...

When you're buying things, especially big ticket items like a car, take all of its financial requirements into consideration. Research and factor everything you can before you sign on the line. You should always have more money at your disposal than what the initial investment says it is. 

A car is a really great example since you'll remember to think about the monthly payment, gas and down payment but might let the insurance, oil changes and other maintenance slip past you. Go back and give those items some thought. They vary depending on the vehicle, age, prior driving history and even your credit.

Live Under Your Means 

Just because you have money currently in your possession and you've paid all of your bills for the month does not mean you have to or should spend the rest of your earnings. Leaving a portion of your money for another day will be the difference between you staying in debt, getting in debt or you carving out a great financial future for yourself. Build the groundwork for you to not feel like you are living paycheck to paycheck. 

Live under your means. Put a portion of your pay away in savings. Students, put it away in a savings or CD account. If you're knowledgeable enough or have a knowledgeable and reliable teacher or mentor, look into opening a Roth IRA. Its never to early to start saving for retirement. Or do a combination of these suggestions or more in areas you understand. Just make sure you are not spending every dime of your pay.

Don't let the knowledge of the money your have burn a whole in your pocket.

Use Credit to Make Money 

Its Thursday and February is gone so chances are you are ready to spend, if even from your computer.

Make your credit create a bit of money for you as you spend. If you were going to spend a certain amount of cash, spend that same amount on your rewards or cash back credit card. 

Also be sure to check if your debit card has any cash back offers for the stores you need to purchase from. Get a little bit of what you're spending back! 

Get the free eBook for more super easy savings tips!

Include Your Dreams In Your Money Goals 

Start thinking now about your dreams and include them into your regular budget. Set a special savings aside just that. Yes you want to cut out excess but none of your goals are excess, they are yours so feed them and encourage them to flourish so you can too. 

And if you're saving a bit for your goals, you'll probably be less likely to waste on random splurges in between.

Seek Mentors 

Seek someone, books, a course or something with knowledge in an area you are not familiar with. They can help you navigate and figure out what, where and how you need to do something and save you a ton of time. 

Don't waste time and your resources trying to reinvent the wheel. Get the best of someone else's knowledge and expertise and use it.

You can even look at Youtube, Patron, and IG for more inspiration and guidance. Check out podcasts and pages like, Earn Your Leisure, Max Maxwell, Todd Capital, Wall Street Trapper, Danielle Pierce and more. If there are any other social pages, groups, podcasts or other that you like and/or has helped you, drop the info. below.

Don't Crack Open the Bulk of Your Savings to Pay Debt 

You will probably reach a point in your savings and debt elimination goals where you will have a hefty amount of money tucked away in your savings. It gives you confidence just thinking about it. 
Then you look at your loan or credit card or other debt balance and the feeling starts to dissipate. The next thing you know, you're contemplating dumping your entire savings into that debt balance so you can either get rid of it all or a chunk and pay less interest over the long haul. 

I'll say this now, what happens if the next day your car breaks down or you need to fly across the country to see a dying relative or disaster strikes and you need to move? Anything can happen and if you dig into your savings to pay off debt, you'll position yourself to easily get right back in the whole you've been digging yourself out of. 

Keep your savings for what its for. You can always pay extra to your debtors when you have extra.

Do You Need A Co-Signer? 

If you need a co-signer that's a sign that you need to do 1 of 3 things: 

1. Don't get it. 
2. Wait a bit longer to get it. 
3. Find another way to get it. 

Being told you need a co-signer can be good since it will stop you - even momentarily to look at your current financial situation and evaluate what you can really afford and where you can best put your dollars to use. 
Once in a while, if it is an item that you have already calculated for and you know you can realistically handle it but you may not have the greatest or longest history you may just need to go in for the ask. Ask for that better rate, as for another lender, and if you don't get a "good deal" be comfortable with walking away.

There are even ways to obtain a house without a hard credit inquiry. 

Evaluate.

Your Emergency Stash 

The unexpected can and will eventually come. Do you feel prepared for when it comes? How has your emergency savings goal been going? Are you on track, reached your goal or not quite there? If you need a marker, aim to have at least $1,000 in savings by the end of the year. If you've done the before, try for $2,000.

Evaluate where you are and take action if needed. But make sure you have yourself covered so you are not scrambling at the buzzer and getting yourself in debt with high interest trying to cover yourself.