Credit Issues: What You Need to Know

10 Money Management Tips

1. Manage your expenses so they don't exceed your income. Simply don't spend more than you earn or receive from student loans, jobs etc. 2. Spend money thinking of your future as well as the present. Ask yourself: Do I really need this? Will I still need it in six months or a year? 3. Begin saving early to take advantage of compound interest. The sooner you start to save, the more time your money has to earn interest. Soon you'll be earning interest on your interest as well as your initial deposit. This is called compound interest. 4. Avoid collecting credit cards and using them for borrowing. Don't get into debt over your head or get so many credit cards that you can't keep track of them. Close any accounts you do not use, but don't close any accounts just prior to applying for a new car or home loan. Leaving accounts open, even though they have a zero balance could give you "useage" points when your FICO score is calculated. 5. Always honor your debts and other financial obligations. Not paying now will hurt you later when you want a car or home loan. Pay particular attention to paying all obligations that occur during the 12 month period leading up to any big planed purchase like car or home loans. The 12 month period just before applying for a loan will have the greatest impact on your FICO score. 6. Project your income and expenses for the next 12 months and track variances. In other words, build a budget and try to stick to it. Beware of making unreasonable expectations that might thwart your buget plans. 7.Become a bargain shopper. Check out any Member Services and discount opportunities offered by credit unions, clubs, or other organizations you may belong to. Find ways to cut your long distance, cellular phone or other service fees. 8. Maintain organized records for tax and general financial planning purposes. Get a filing cabinet to save your receipts and keep track of your statements. 9. Have a plan and a purpose for your investing. To get you started; complete a Financial Assessment to outline where your money is going and identify trends in your buying habits. 10. Protect yourself and your belongings with insurance. .gif"s important to keep your policies current - so you don't have to take risks. .gif"s among the best ways to protect your investment in yourself and your property.