Credit reports, budgets, goals, and debt can be frightening words and concepts whether you are hearing them for the first time orthe hundredth time. Once you become familiar with the world of finance, you can maneuver more effectively through your own financial history to set up your future. Here are some ways to become more comfortable with the wild world of money.
- Check your credit report. Remember when
teachers used to talk about your permanent record? This is similar in that it
is a record of your credit transactions, lending applications, payment history,
bankruptcies, payoffs, and anything financially related to your social security
number. Take a moment to look at your credit score and history to make sure all
the items or transactions belong to you and to see where you stand. You are
entitled to a free annual credit report from each of the three bureaus from Annual Credit Report.
- A budget will show you where your money
has gone. As you become savvier with your money, you will feel empowered to
tell your money where to go. Find out how you are spending money AND how to cut
back. Nerd
Wallet is a resource that will give you tips on cutting back, as well as
the psychology of why we feel we need to spend.
- Your goals should be specific. Write down
the amount you want to save and the date(s) of when you plan to accrue the
money. With specific goals, you can formulate a concrete plan with small steps
that will result in a big check mark next to your goal. Have some grace with
yourself, life does happen, and you may need to dip into the money saved for
emergencies.
These guidelines, and many others, can help you successfully navigate your current financial situation and prepare for future milestones. Be sure to contact us for more information. One last tip. Don’t be afraid to ask questions or reach out to experts. At Inspire, we want everyone to succeed. Let’s become more financially fit together!
