Posted in Building Wealth, Credit Cards, Debt Free, Financial Freedom, Winning with Your Money, You and Your Money

Your Financial Reputation

Your Financial Reputation

I get asked all the time “Do I need a credit score?”

Do you need a credit score to live? No. But is a good credit score beneficial – absolutely. Your credit score and credit report reflect how you handle your money. They are your financial reputation. And just like in life, we all should strive to have a stellar reputation. So what can you do to make sure that your financial reputation is stellar.

Here are a few tips:

  1. Make all your monthly payments on time – Being prompt on your payments shows that you take your committments seriously. You made a promise to pay a certain amount by a certain day and you followed through on that promise.
  2. Keep your credit utilization low – This shows that you can handle whatever is given to you and that you don’t need to spend everything you have access to. Just because you have a total credit limit of $10,000 doesn’t mean you need to spend $10k. 10% or less is considered excellent in the credit world and is just the smart thing to do. Don’t overextend yourself – it won’t end well.
  3. Keep your accounts low – You don’t need 10 credit cards to make your point. All it takes is one card paid every month on time to build your credit – as long as you keep your usage below 10%. Don’t have so many accounts that you need a “beautiful mind” to keep up with it all.
  4. Be patient – Building credit takes time and repairing credit takes even more time. Just keep doing the right thing and your reputation will speak for itself.
  5. It is not about debt – You can build credit without ever going into debt. Debt is owing more than you have. Credit is a source of payment. Using credit is not a bad thing – as long as you have the funds to back it up.

These tips work whether you are building credit or trying to rebuild your credit. I went from a 585 at the beginning of my journey to over an 800 now. It takes time and commitment but it is worth it for a stellar financial reputation. Remember the tortoise wins every time you read the story!

Posted in Building Wealth, Credit Cards, Debt Free, Financial Freedom, Saving for Your Future, Winning with Your Money, You and Your Money

We Have a Shopping Situation

If you are in debt right now, odds are you have a shopping “situation”. For me, it was a full blown shopping addiction. (Yes – that is a real thing with a 12 step program and everything.)

But even if you aren’t addicted to shopping, your shopping “situation” is stymying you from becoming debt free and building wealth.So how did I get my shopping “situation” (addiction) under control? Here are a few things that I did that helped me turn it all around and even help me today when I find myself shopping more than my budget can handle.

  • Remove all of your credit cards from your shopping websites
  • Remove all of your shopping websites from your email
  • Cut up and close all of your credit cards
  • Only go to the store when necessary and when you go, take a strict list and cash
  • Be content with what you have – promise yourself you won’t upgrade unless what you have breaks and can’t be fixed.
  • When you start shopping online, get up and do something else. We shop out of boredom a lot and just doing something else for a few minutes gets our mind off of it.

Shopping gives many people a high – it makes us happy, gets us through rough times, and makes us feel good for a moment. But like every high, it doesn’t last. However, the debt does. We need to take a few seconds every time we feel like shopping and reprogram our brains to do something else – something that doesn’t cost money.

I challenge you to look at your credit card statements and your spending for the last 3 months. I think you will be shocked at how much you actually spent. Now, I want to challenge you to go on a 30 day spending freeze. This is how I retrained my brain 20 years ago and I still use it today when needed.

When you stop spending money on “stuff” and start buying only what brings value to your life, you will have more money to save and to use to pay off debt and build wealth. And that will give you a high that will stay with you always!

Posted in Building Wealth, Debt Free, Financial Freedom, Saving for Your Future, You and Your Money

Save Money Today

America Saves Week 2020 is still a month away, but we don’t want you to have to wait that long to get savings tips that will change your finances.

Many of you don’t save money because you think you can’t or that you don’t have the money. The truth is you do have the money – you’ve just promised it to other people or have things that you believe are more important that you need to use it for. But there is nothing more important than making sure you have an umbrella when the storms of life come through.

I don’t want you to have any excuses for not saving so here’s a tip that you can use today to get started. Take $10 – from your account, your couch, your car, anywhere – and put it in a savings account. (You have $10 and you know it!) If you don’t have a savings account already, you can open an online savings account in 2 minutes . It’s okay to start small – you just need to start.

And if you really want to build wealth, set up an automatic transfer for another $10 every paycheck. Doing this forms the habit of savings and when you develop this positive habit, you will want to do more and more, building wealth along the way.

So no more excuses! $10 is all it takes to change your finances forever in a positive way! You’ve got this!!