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