| Learning to Save | | | | The Power of Credit |
| A budget is a balancing act between your | | | | Credit can work for and against you. |
| income and your expenses. If your income | | | | There are some purchases that would be |
| exceeds your expenses you will enjoy the | | | | impossible without credit. Most people |
| comfort of living within your means. If | | | | cannot afford to purchase an automobile |
| your budget is too tight a single | | | | for cash. But the same credit that makes |
| unexpected expense can be the start of | | | | the purchase possible can be a problem |
| credit problems. The first step in | | | | as well. How much of a car do you need? |
| building wealth is to structure your | | | | When you see that you can upgrade for an |
| budget to allow for savings. Savings | | | | extra $100 each month do you understand |
| will provide a cushion to insure that | | | | the impact of that decision on your |
| your credit is unaffected by unforeseen | | | | life? The decision to upgrade may be |
| expenses. As time goes by and your | | | | fine! But it should be made with a real |
| savings grow you will discover that you | | | | understanding of the cost. If you put |
| are moving surely towards a life of | | | | $100 into a money market account each |
| confidence and financial freedom. And if | | | | month at an interest rate of 5% you |
| you are in a credit repair program a | | | | would have saved $6,800 at the end of 5 |
| savings plan will insure your ability to | | | | years. $200 per month translates into |
| maintain the great credit that you are | | | | $13,600. It adds up. There are many |
| working hard to achieve. | | | | decisions that work the same way. The |
| Shifting Priorities | | | | use of credit on purchases like a car or |
| There is nothing more uncomfortable than | | | | a television may seem minor, but |
| the discovery that you cannot pay your | | | | together they can have a major impact on |
| bills. Many financially successful | | | | your life. In the credit repair business |
| individuals have gone through tough | | | | we speak with very intelligent people |
| times and successfully channeled their | | | | every day that have run into credit |
| discomfort into a great determination to | | | | problems simply by not considering the |
| change the direction of their lives. | | | | long term effect of seemingly small |
| They forced themselves to examine their | | | | decisions. Ask yourself what you can |
| budget, live within their means, and to | | | | afford. Ask yourself what the real cost |
| make savings and investment a priority. | | | | is. |
| Over time the shift in priorities | | | | Savings and Your Credit |
| resulted in personal wealth, financial | | | | One of the benefits of starting a budget |
| freedom, and a quality of life that far | | | | and savings plan is great credit. If you |
| outweighed the sacrifices they made. | | | | allow for enough of a margin in your |
| Getting Started | | | | budget to save a percent of your income |
| The first step towards building wealth | | | | each month you will find it easy to pay |
| is to take a close look at your | | | | your bills. And in the case of |
| finances. Look at your checkbook and | | | | unexpected expenses, that margin will |
| credit card statements. What are you | | | | allow you to accommodate those expenses |
| spending money on? Add up your monthly | | | | without causing you to be late. Are you |
| expenses and compare the total with your | | | | involved in credit repair? This will |
| monthly income. Is there enough left for | | | | make a world of difference in your life. |
| savings? Examine your expenses. What can | | | | And it's just the beginning! As your |
| you do without? Every dollar that can be | | | | credit improves and your credit scores |
| cut from your expenses is a dollar that | | | | rise you will find that lenders charge |
| can be saved. Have you ever felt the | | | | you lower interest rates. This can |
| discomfort of not being able to pay your | | | | affect every credit based expense that |
| bills? Most people in credit repair | | | | you have, from your credit cards to your |
| programs are familiar with this | | | | automobile loan and your mortgage. And |
| discomfort. Consider that feeling and | | | | as your interest rates fall, so do your |
| then think about how great it would feel | | | | monthly payments. You get more for your |
| to have money left over each month. What | | | | money and have more left to save and |
| is that worth to you? I think you will | | | | invest. Are you ready? Take the first |
| find that peace of mind and the | | | | step today. You'll be glad you did! |
| knowledge that you are doing the right | | | | Copyright © 2007 James W. Kemish. All |
| thing for yourself is worth the effort | | | | Content. All Rights Reserved. |
| of budgetary restraint. | | | | |