GET YOUR CREDIT IN CHECK
That old saying goes… “more money more problems”. But when you DON”T have it you want it, and when you have it, you want to keep it and MAKE more of it!
When is the right time to get your finances in order. I don’t think there is a better time than now. The earlier the better! The younger you are gives you a better advantage to save, accumulate credit and invest. When I was younger saving and investing was the farthest from my mind. I was busy living my life and having a funky good ole time. But then life catches up to you. You want to invest in a home or buy that car and can’t because your credit is either not developed or ruined from maxing out on cards in your early 20’s and having it go into collection.
Well let me share some things that I am currently doing and have done. The first thing I would suggest is paying off your debt. You will always have debt, but there is good debt and bad. Credit cards…bad debt. School loans, although overwhelming is mandatory to pay off and considered good debt. The government is going to get their money one way or another. You can’t put it on the back burner, because they will come after you by garnishing your wages. So get yourself on a payment plan. Defer your loans as long as you can and then set up a payment plan to pay back the minimum or what you can afford to live comfortably. Depending on the amount you have it may be years before you can pay it off. But you can.
Next I would say to tackle that credit. If you didn’t know, your credit starts when you open that first card. So make sure you keep that original card. It will show the history of your credit which is a basis of your credit score. If you don’t have credit, it’s considered bad credit! Please pay off your card! I know we have all been there, but pay it off! If you have credit cards, use them responsibly. Use it like a debit card, buy what you can afford to pay off over time. The shorter the better, should there be interest compounded. The longer you take to pay the more interest you will be paying as well, which is costing you more money.
If you owe creditors pay them back directly. “Owe unto no man”. Don’t pay a third party company. Pay who you owe! It will make you feel better and the credit card company can note it on your credit report as paid off. Check out this video by Jay Morrison. He can give you some knowledge on how to work on that credit score.
Another piece of advice is Dave Ramsey. I am currently reading the Total Money Makeover.
Dave Ramsey’s practices aren’t everything. To each their own, but it makes sense. You have to find out what works best for you with what you have. I prefer the snowball method as opposed to the debt avalanche. Paying the smallest balances off first then working on the larger balances with higher interest. There is something great about knowing that I have paid off a credit card or bill that motivates me to do better and work harder towards financial freedom. Give it a try.
Hope this gives you perspective into credit. You need credit to get credit, You need good credit, to increase your credit score. You increase your credit score by paying overtime, ontime. That is how you work towards financial freedom, then we can work on gaining wealth.
I am so excited to share my journey with you. I am no spring chicken, but I do believe that you can grow wealth and retire early. In order to do that you have to start somewhere. If you are on the same path….I’d love to hear how you are working towards financial freedom and living like a true king and queen!