3 things single people should still have!

You figure hey – I’m only responsible for myself! I don’t need to plan for anything other than my day to day life. WRONG!

1. You need an Emergency Fund more than anyone else. If you get laid off it could take at least 9 months to find a new job – No emergency fund means trying to scrape by on unemployment if you can even qualify. Let alone trying to stay on top of your credit cards or education loans.
2. You still need life insurance. Your family would still be responsible for getting your finances in order let alone estate taxes and your actual burial.
3. Saving for retirement. It’s easy to put things off when it seems so far away. But if it’s just you who is going to take care of you. How are you going to maintain your lifestyle once you reach the age to retire. 10% of your gross income should be set aside for retirement.

A few things you should always be thinking about and prepared for.

American Financial Benefits Center

SPEND to SAVE! – Creating a spending plan!

You don’t want a budget well here’s a new twist to manage your money.

1. What is your income?
2. What is your monthly expenses?
3. Calculate and write down the difference?
4. Now put your expenses in three categories, Fixed, Variable and Discretionary?
5. Assign responsibility of who pays what?
6. Assign what is paid from each pay period!
7.  Make sure to have an emergency expense included in that list of expenses!

Follow this plan for one month with setting aside the calculated emergency expense and not adding anything that could be avoided to your spending plan. Remember to be absolutely honest with your spending register so that you can be proud of your SAVINGS!

American Financial Benefits Center

Setting goals!

Setting goals – Financially, Personally, and Career Minded!

1. Write all your goals down – start with a financial plan.
2. Make sure these goals are truly what YOU want.
3. Your goals must benefit you.
4. Your goals need to have room to adjust to become real.
5. Your goals need a deadline. 

Setting financial goals so that your personal goals can become a reality. Be realistic about your plan, be honest with your finances and keep at it! You can sit and day dream all day on about that sunny vacation or that new car but if you don’t take action your dreams will be just that.

American Financial Benefits Center

3 payments you never want to forget!

1. Paying your mortgage late usually just comes with a small late fee but it can lead to foreclosure and a ding to your credit score! Be proactive contact your financial institution the moment you know you are going to be late and attempt to work out a payment schedule.
2. Credit cards will always charge a late fee anywhere between $20.00 - $35.00 plus interest. It will reflect on your credit when you are continuously late in making those payments. Best thing to do is make at least the minimum payment.
3. Pay your utilities most people don’t realize that while your late payments don’t reflect on your credit report (some states actually report) If that overdue balance carries to long they will sell your debt to a collection agency!

Stay on top of these payments! Protect your credit score! It is your responsibility!

American Financial Benefits Center

3 powerful financial principles.

1. Learn to live on less than you earn. Advertisers spend billions trying to convince you to be unhappy with what you have. They tell you happiness is in more things, nicer clothes, faster cars, newer furniture, or great vacations. So how much is enough? Often people use shopping as a therapy to relieve stress, boredom, loneliness of depression. Shopping makes them feel better for a time but the feeling rarely lasts. It causes new problems if you spend money you don’t have on things you can’t afford.
   
   
2. Put the power of interest to work for you. Are you paying interest or earning it? Money in a savings account or invested carefully, will earn you interest. Your money works for you – you earn more than your original investment. That’s putting the power of interest to work for you.
   
   
3. Exercise financial discipline. Most anything is possible with self-discipline, and without self-discipline, almost nothing is possible. It takes discipline to follow your roadmap and stay on the road to financial freedom. Discipline to live on less than you earn and put the power of interest to work for you.

What’s in a number anyway?

Putting all your effort and focus on just your credit score is fruitless it will yield little too no results. So what should you put your energy into? Applying yourself to take back control of your credit.

1.  Debt Usage – Maxing out your credit cards is not going to help you or encourage your creditors to give you more credit. Keeping your utilization under 35% is a positive on your credit report and will help maintain a positive credit score.
   
   
2. Inquires – Every inquiry is going to lower your credit score by at least a few points – more often than not by 5-10 points. So don’t go out and apply for every credit card a teller offers to you. More credit doesn’t mean good credit.
   
   
3. Payment History – having an on time payment history is a GOOD thing if you can’t focus your energy on anything else – pay your credit cards on time.
   
   

Building and maintaining a positive credit score can be daunting but stick to the basics and don’t charge on a whim and your credit report will maintain a healthy balance.

Basic Rules to Maintaining Good Credit!

There really isn’t a lot of mystery behind having good credit. It just takes a little common sense and restraint on your spending habits.

1.  Improve your credit score by keeping your debt to 35% or below what your available credit is. This is per card not total. Paying your bills on time is a big plus.
   
   
2.  Review and make sure you understand your terms and conditions of your credit card. It is standard practice for companies to raise your interest rate when you miss a payment.
   
   
   
3. Use cards that match your spending. Choosing the right card for you at the checkout can save you a lot of money. But keep in mind those store credit cards come with high interest rates.
   
   
4. Paying down those balances – even if it is only an extra $10-20.00 on top of the minimum amount due. It will go directly towards your principal and reduce the amount you owe.

Carrying lower credit balances is considered a low credit utilization ratio – which is a good mark on your credit score and looks good when that financier is looking at your credit report.