Many Americans live from paycheck to paycheck, only managing to make the minimum payments on credit cards and loans and not setting anything aside for savings. If this sounds familiar, companies like Rescue One Financial have some ideas for changing your financial behavior.
Make a Budget
Sit down and figure out what you have coming in and what needs to go out. If the two figures aren’t at least close to each other, you will need to make some adjustments. Cutting out luxuries like cable and lunches at restaurants is the first line of attack. If this isn’t enough to get the budget in line, consider taking an additional part-time job.
Pay Bills from Earnings
Avoid using credit cards to pay bills because this only adds to your debt. Use the money from your paycheck to take care of monthly expenses, and if there is anything left over, put it into savings.
Pay Off Highest Interest Credit Cards First
Credit cards and loans with high interest rates are costing you the most money, so start making extra payments on these balances until they are gone. Once you have these debts paid off, start working on the lower-rate cards, and increase the amount you are putting into savings.
Pay on Time
Be sure to pay at least the minimum amount due on time each month. This will improve your credit rating and it will be easier to get a mortgage or a car loan when you need one in the future. Many employers run a credit check on prospective employees, so improving your credit score can help you get a job.
Pay Cards Off Every Month
Once you get your balances down to zero, keep them there. If you pay your balance every month, you will not pay any interest at all.
Getting your personal finances under control not only gives you peace of mind and helps you plan for the future, but it also improves your credit score. Take charge of your financial life today.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.