Learning to Save
A budget is a balancing act between your income and your expenses. If your income exceeds your expenses you will enjoy the comfort of living within your means. If your budget is too tight a single unexpected expense can be the start of credit problems. The first step in building wealth is to structure your budget to allow for savings. Savings will provide a cushion to insure that your credit is unaffected by unforeseen expenses. As time goes by and your savings grow you will discover that you are moving surely towards a life of confidence and financial freedom. And if you are in a credit repair program a savings plan will insure your ability to maintain the great credit that you are working hard to achieve.
Shifting Priorities
There is nothing more uncomfortable than the discovery that you cannot pay your bills. Many financially successful individuals have gone through tough times and successfully channeled their discomfort into a great determination to change the direction of their lives. They forced themselves to examine their budget, live within their means, and to make savings and investment a priority. Over time the shift in priorities resulted in personal wealth, financial freedom, and a quality of life that far outweighed the sacrifices they made.
Getting Started
The first step towards building wealth is to take a close look at your finances. Look at your checkbook and credit card statements. What are you spending money on? Add up your monthly expenses and compare the total with your monthly income. Is there enough left for savings? Examine your expenses. What can you do without? Every dollar that can be cut from your expenses is a dollar that can be saved. Have you ever felt the discomfort of not being able to pay your bills? Most people in credit repair programs are familiar with this discomfort. Consider that feeling and then think about how great it would feel to have money left over each month. What is that worth to you? I think you will find that peace of mind and the knowledge that you are doing the right thing for yourself is worth the effort of budgetary restraint.
The Power of Credit
Credit can work for and against you. There are some purchases that would be impossible without credit. Most people cannot afford to purchase an automobile for cash. But the same credit that makes the purchase possible can be a problem as well. How much of a car do you need? When you see that you can upgrade for an extra $100 each month do you understand the impact of that decision on your life? The decision to upgrade may be fine! But it should be made with a real understanding of the cost. If you put $100 into a money market account each month at an interest rate of 5% you would have saved $6,800 at the end of 5 years. $200 per month translates into $13,600. It adds up. There are many decisions that work the same way. The use of credit on purchases like a car or a television may seem minor, but together they can have a major impact on your life. In the credit repair business we speak with very intelligent people every day that have run into credit problems simply by not considering the long term effect of seemingly small decisions. Ask yourself what you can afford. Ask yourself what the real cost is.
Savings and Your Credit
One of the benefits of starting a budget and savings plan is great credit. If you allow for enough of a margin in your budget to save a percent of your income each month you will find it easy to pay your bills. And in the case of unexpected expenses, that margin will allow you to accommodate those expenses without causing you to be late. Are you involved in credit repair? This will make a world of difference in your life. And it’s just the beginning! As your credit improves and your credit scores rise you will find that lenders charge you lower interest rates. This can affect every credit based expense that you have, from your credit cards to your automobile loan and your mortgage. And as your interest rates fall, so do your monthly payments. You get more for your money and have more left to save and invest. Are you ready? Take the first step today. You’ll be glad you did!
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
About the Author:Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business.
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Please tell me i'm not crazy
By: sandyrae | 19-08-2008
i was told my daughter at a young age had night terrors. well, shes 4 now and from the min she wakes up shes zooming with energy, her mood swings are horrible. shes mean and nasty when shes not hypers and cries off and on through the night. its making it very hard to handle her. we have a hard time sleeping and no ones every happy anymore. i dont know what is wrong, and i dont know what to do. she cried tonight when i asked her why she got so mean and she cried and said i dont know. i need advice. i'm pretty sure this is it, but i might think its a medication issues. she starts preschool next month and i dont want this happeneing there. any input?
Lien on co-owned home from 2002 Judgment?
By: APhoenixRisen | 18-08-2008
In 1998 one of my credit cards went delinquent. In 2002 I lived in Colorado but the company got a judgment in NY. Now I live in Alabama and got a call from a collector threatening to put a lien on the home I co-own with my disabled son. Can they do this? How can I protect our home? I am under-employed and my son is permanently disabled. Isn't there some sort of exemption or way I could protect my our home? How long will there be a danger to our home from this 2002 judgment?
Mental disorder?
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My best friend in the last couple of months (about 2) has been acting very strange. Her behavior has become irrational and impulsive. She will insult people and not realize it. She acts as if she is intoxicated when she is not. It is confirmed that she is NOT on any form of drugs. She will talk nonsense, and has become almost slutty around men. she picked up 9 men in one weekend. I believe she may have something going on mentally but I am not sure. Whats wrong with my friend?
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Is there a small DC powered with inverter to AC , self contained , weather proof unit on the market?
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I have heard several stories about people getting ...
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I have heard several stories about people getting carts full of groceries for just pennies or even getting money back! How do they do it? My family is on a very tight budget and any advice will help. Thank you.
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