Talk Tuesday - Why yo ass broke, Part II
This is the conclusion to last Tuesday's post where I'm giving you tips on how to claim your financial freedom and being to make better choices with your money.
Work on Repairing Your Credit - The first step to repairing your credit is to gather all your bills to establish just how much debt your in. That means opening all your bills or contacting the companies and explaining to them your plans to pay them back. Believe it or not, most companies want to work with you because they want to get their money as well. With credit card companies you can make arrangements to have them lower your interest rate, but you may have to set up automatic payments for a large amount. Also work towards paying down smaller debt first, and pay just the minimum with your larger debt. Once your done with the smaller one, that money can go towards your larger debt. Once you pay off the smaller debt, if you don't need or use that credit card anymore, just cut it up and throw it away. DO NOT CLOSE THE ACCOUNT!!!! Doing so can sometimes lower your credit score, and we don't want that. Having a credit card with a zero balance is better than having one that has been closed. Remember, the longer it has been on your credit report in good standing with give you better interest rates.
Invest in Your 401K/Retirement Account - A great way to set yourself up for financial freedom is to invest in yourself. ALWAYS open a 401K account at work. This money comes out of your account automatically and you never have to touch it. Also, if your company does matching contributions I recommend always investing at least the amount they match. So if they match 7% you invest 7%. Of course you can always invest more, and whenever you receive a raise, increase the percentage you invest. I also recommend having retirement accounts outside of work, such as a Roth or Traditional IRA. Depending on what works best for you, I recommend talking with your Financial Adviser and see what they recommend. It's better to put your money in many baskets and not all in one basket.
Purchase a Home - One sure fire way to build equity in yourself and your portfolio is to purchase property. When you have a home you can call your own, not only does it grow in value, but you also receive tax breaks from owning....something you were never able to do as a renter. Your first home does not have to be your dream home, but I would recommend buying in a area that you can afford. Buying in an up and coming neighborhood is better because that insures your property will appreciate in value. Invest in your home by putting in upgrades that suit the area. So when it's time to sale, you sale for more than the purchase price.
Purchase Life Insurance - Life insurance is not just for funerals, but its also used as a tool to provided your family with stability in the untimeliness of your death. The more life insurance you have the better. I always sign up for the life insurance at my job, whatever the maximum is for my entire family. Same as the 401K, I recommend havering life insurance outside of work. There are different types of life insurance that can meet your needs, speak with someone who is licensed to sale insurance and see what they have to offer.
Spend Wisely and Enjoy Life!!! - I'm not a financial expert, but I have learned some things along the way of this road called life. Life would be no fun if we were always worrying about saving and not having money. Theses 10 simple steps can place you on the road to financial stability. Remember, you work hard and you damn well better play hard. Just make wise decision when it comes to your money and always pay yourself first. Until next time....Stay Fabulous on your journey to Financial Freedom!!!!
Work on Repairing Your Credit - The first step to repairing your credit is to gather all your bills to establish just how much debt your in. That means opening all your bills or contacting the companies and explaining to them your plans to pay them back. Believe it or not, most companies want to work with you because they want to get their money as well. With credit card companies you can make arrangements to have them lower your interest rate, but you may have to set up automatic payments for a large amount. Also work towards paying down smaller debt first, and pay just the minimum with your larger debt. Once your done with the smaller one, that money can go towards your larger debt. Once you pay off the smaller debt, if you don't need or use that credit card anymore, just cut it up and throw it away. DO NOT CLOSE THE ACCOUNT!!!! Doing so can sometimes lower your credit score, and we don't want that. Having a credit card with a zero balance is better than having one that has been closed. Remember, the longer it has been on your credit report in good standing with give you better interest rates.
Invest in Your 401K/Retirement Account - A great way to set yourself up for financial freedom is to invest in yourself. ALWAYS open a 401K account at work. This money comes out of your account automatically and you never have to touch it. Also, if your company does matching contributions I recommend always investing at least the amount they match. So if they match 7% you invest 7%. Of course you can always invest more, and whenever you receive a raise, increase the percentage you invest. I also recommend having retirement accounts outside of work, such as a Roth or Traditional IRA. Depending on what works best for you, I recommend talking with your Financial Adviser and see what they recommend. It's better to put your money in many baskets and not all in one basket.
Purchase a Home - One sure fire way to build equity in yourself and your portfolio is to purchase property. When you have a home you can call your own, not only does it grow in value, but you also receive tax breaks from owning....something you were never able to do as a renter. Your first home does not have to be your dream home, but I would recommend buying in a area that you can afford. Buying in an up and coming neighborhood is better because that insures your property will appreciate in value. Invest in your home by putting in upgrades that suit the area. So when it's time to sale, you sale for more than the purchase price.
Purchase Life Insurance - Life insurance is not just for funerals, but its also used as a tool to provided your family with stability in the untimeliness of your death. The more life insurance you have the better. I always sign up for the life insurance at my job, whatever the maximum is for my entire family. Same as the 401K, I recommend havering life insurance outside of work. There are different types of life insurance that can meet your needs, speak with someone who is licensed to sale insurance and see what they have to offer.
Spend Wisely and Enjoy Life!!! - I'm not a financial expert, but I have learned some things along the way of this road called life. Life would be no fun if we were always worrying about saving and not having money. Theses 10 simple steps can place you on the road to financial stability. Remember, you work hard and you damn well better play hard. Just make wise decision when it comes to your money and always pay yourself first. Until next time....Stay Fabulous on your journey to Financial Freedom!!!!
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