Money Mistakes & Their Easy Fixes

Sometime during our lifetime we spend more than we planned, saved less than we should have or just made some horrible financial decisions. A few financial misfortunes here and there can add up to a lot of lost cash. Check out these common money mistakes and follow the advice to help put you on the path to a brighter financial future.

Money Mistake #1: No idea where your money is going.

What’s The fix? Making a budget is the best thing you can do to find out all the ways you are throwing away your money. At the end of the month you see you have spent $250 on fast food and $0 on paying down your high interest credit card then you need to make some spending adjustments.

Money Mistake #2: Not having an emergency fund.

What’s The Fix? Try and save a chunk of money in case something unexpected happens. It’s a good rule of thumb to have 3-6 months of expenses saved in case of an emergency. Set a goal and don’t stop saving until you hit your goal. If you’re not sure how much to save look at your monthly budget and figure out where you can cut to start saving for a rainy day.

Money Mistake #3: Waiting to save

What’s The Fix? Start saving NOW. Opening a retirement account in your 20s can potentially give you twice as much money as someone who starts one in there 30s.

My recommendation is to follow the Ten Cent Law. Take ten cents of every dollar you earn and put it in your savings account. It won’t be hard to Live on 90% of your income, and you’ll soon have a very nice nest egg.

Money Mistake #4: Using High-Interest Debt

What’s The Fix? If you are regularly overdrawing your checking account, using credit card advances or payday loans, you are essentially throwing your money away. Borrowing is OK, but those forms of debt are way to expensive. These forms of debt most always come when you have exhausted all other options.

Money Mistake #5: Paying off debts in the wrong order

Bigger balances on things like student loans and mortgages can seem overwhelming, but it’s the smaller credit card bills that can really hurt you.

What’s The Fix? Pay off the card whose balance is closest to its limit (having balances close to your limit lowers your credit score), and then start chipping away on the card with the highest interest rate. Also, refinance big-ticket balances (mortgage, etc.) to make payments a little more manageable.

Money Mistake #6: Spending money on items you could get for absolutely FREE

What’s The Fix? Did you know you can get music, books, magazines educational classes, book clubs, and even printing services at the local library? Just access their website and see what they have available. Also, get involved in a clothing swap, borrow from a friend instead of buying, and maybe talk a walk in the park or hike a national park instead of going to the mall. There are plenty of free options. You just need to find them.

Money Mistake #7: Buying NOW

If you MUST have things BEFORE you have money to cover them, you’ve fallen prey to the great American debt trap. Just look at interest charges – debt isn’t cheap.

What’s The Fix? Are you buying things before you have the money to pay for them? Remember, debt isn’t cheap. I believe in good things come to those who wait. I’m sure you’ve heard this before. If you can wait until later to buy that all important item and put money away to save for it, you won’t have to use high interest credit cards. That’s how you become debt free.

Money Mistake #8: Spending too much on housing

What’s The Fix? As we all know, it’s easy to spend way too much on housing. The rule of thumb is, you shouldn’t spend more than 30% of your income on housing. If that doesn’t work for you, living with parents or roommates is a perfect strategy. And, when you decide to move out on your own make sure your mortgage or rent do not put your long-term financial goals in jeopardy.

Financial mishaps are certainly a part of life but it is easy to recognize your mistakes and learn from them. Make it your goal to stop making these common money mistakes. In the end, your piggy bank will thank you.

Article Source: http://EzineArticles.com/9629676

Dating Tricks To Find Your Credit Score Match

This could be a result of many factors. For instance, people with similar credit scores are likely to be in similar income brackets and as a result have similar tastes and habits. And, people who have similar credit scores (whether low or high) are also likely to have similar attitudes to life. Think about it. If your partner is scrupulously obsessed with keeping their credit score perfect and you on the other hand are a little more relaxed on the subject, having missed a few payments here and there – you’re likely to have pretty different personalities.

Bearing all this in mind, we have created 7 handy first date tricks to help you to find your credit score match. Read on to take advantage of these handy romantic (and financial!) hints.

Talk about mortgages.
OK, now mortgages may not be the most romantic topic on the face of it, however they are linked to several deeper aspects of our lives. For instance: do we want to settle down? Are we a homeowner? Do we want to share a home with someone we love, or would we rather travel the world with them? A negative credit score can affect your chances of getting a mortgage, and so why not approach the issue by talking about deeper topics such as whether you and your date see yourselves settling down in a love nest in a couple of years’ time. Now that can be a highly romantic topic of conversation!

Talk about marriage.
Did you know that if you are married, your partner’s negative credit score can affect your own? Discussing your respective attitudes to marriage on a first date is a good way of establishing whether your potential partner values stability – both financially and romantically. After all, these two types of stability often go hand in hand.

Check in with them about their past regrets.
Asking someone what their biggest regrets are is actually quite a common first date question! It’s away of getting to know someone. Sometimes, those regrets will be financial ones – debts got into, loans taken out for projects that headed off track. Or, maybe your future lover regrets being too careful with their money! Whatever answer you get to this question, you will be able to move on to ask them about their credit score if you like, or simply use the discussion to gauge their attitudes to risk and reward more generally.

Talk about careers.
Are you both members of the precariat? You can bond over that! Or, maybe you both work in the same financially stable profession. Either way, talking about your career prospects, hopes, and pasts is a brilliant way to get to know each other – and each other’s credit scores.

Ask what they would do with a large sum of money.
If you won the lottery tomorrow, what would you do? This is such a common first date question. If your date says ‘use the money to pay off all of my considerable credit card debts’ or ‘haul myself out of bankruptcy’, then you may get a fair idea of their credit score! Of course, if someone has a poor credit report repair, that does not mean that you should not date them at all – all this indicates is what their attitudes to life are like, and whether they match yours.

Ask them how organized they are.
Another great question which helps you to get to know both your partner’s personality and their credit score. If someone is very disorganized, they may find it hard to keep on making payments on time to their various creditors. A super organized person will usually be on top of their credit and their finances.

Just ask them about their credit score.
If you want to be honest with your date, why not just cut to the chase. Ask them what their credit score is like, and divulge yours too if you feel like it. You could open this conversation by saying ‘I just read a fascinating little article about how to find your credit score match on a first date… ‘

In conclusion, asking someone about their credit score on a first date is a great way to find out if you guys will be a good match in the longer term. And, you do not need to do so in a blunt way if you don’t want to: ease into the conversation with a discussion of general topics such as life plans and attitudes to money.

Article Source: http://EzineArticles.com/9663453