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