10 Steps to a better credit score: Step three is creating a BUDGET
One way to avoid financial mistakes is to know where all your monies should go. Sometimes it's a little scary to sit down and "face the music," to see where all of your money is actually going. Budgeting is a vital step in turning around your financial situation and begin moving forward. A key to your credit score and improving it is to learn to expect the unexpected. Create a budget and stick to it.
Although creating a budget and sticking to it maybe stressful at first; I guarantee the creditor calls (if you fall behind on your payments) will bring stress to a whole new level. Here are some simple budgeting tips to keep in mind while you start your budgeting adventure:
- Know your budget temptations and stay away from them
- Wait before making an impulse purchase. Do not purchase the item, walk away, turn off the computer; just remove yourself from the situation. If you can not pay cash for it, figure out how long it will take you to pay it off with interest added to the price. Now ask yourself: "How many hours of work will it take for me to pay for that item?"
- Budget for items like birthdays, Christmas, vacations etc. If you neglect to put aside money for these items you will end up reverting to old habits in-order to pay for them.
- Start an emergency fund and do not touch it unless its an emergency, this does not mean an impromptu invite to the movies.....
- Set money aside for infrequent bills (yearly car license/tabs, property taxes, insurance)
- Some people prefer online budgeting. Contact me for suggestions on where to go.
- Carry your budget around with you in your wallet or purse.
Contact me at www.utahcreditcoach.com for your free budget spreadsheet, coaching session or if you have questions.
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