Are you a full time employee trying to fix bad credit? Here are tips on how to save and spend money not only to improve your credit but to build wealth as well.
Pay Yourself First
It may sound cliché but paying yourself is one of the most powerful personal finance and investing techniques to help you save money.
Rewarding yourself for your hard work is something that many people feel guilty of doing. Oftentimes breadwinners would rather pay everything else and spend money on their family than spend something for themselves.
The truth is that doing so help you increase the amount of ultimate net worth you can store for yourself and your family on the future. But many people wait for the surplus cash before they put something into their investment funds like stocks, real estate, bonds, and retirement accounts. But, a few extra dollars will do—in fact, setting up this pay yourself method is a very simple task.
Sign up for an automatic contribution to your investment funds. You can have the contribution automatically withdrawn directly from your checking or savings account each month. It could be a retirement account, or a dividend reinvestment plan to buy your shares of your favorite blue chip stocks, or both. You can start this investment method with less than $100.
Let’s say, you can set up an automatic $50 per month withdrawal to buy shares from your favorite company. The money will accumulate overtime, as dividends are reinvested each time. After a few years, your equity will grow to a few thousand dollars.
The same thing goes to your retirement plan. You can use the bill pay feature of your bank to automatically pay your retirement contribution each month. Many people are not yet ready to retire, even those who only have a few years left in the workforce.
They are not looking forward to relax and enjoy themselves after spending decades in the work force. While the thought of spending time with their loved ones, travelling or volunteering seem so appealing, it is difficult for them to even imagine planning for retirement. It is because they are not ready, financially.
There are many individuals who have been employed in a company with retirement benefits for their employees. But others have not saved anything at all. That’s why it is important for full time employees to check with their employers about their retirement contributions, and to set up their own retirement portfolio as well.
Remember that retirement is costly. If you want to maintain a lifestyle which is the same or better than what you have today, you need sufficient funds to do it.
Consolidate your Loans
You cannot save enough, when you have so many debts to pay each month. Consolidating your debts can help you organize your repayments, and have a clearer understanding of how much you need to earn to cover all your expenses. For example, if you have 5 credit cards, a mortgage, 2 personal loans and utility bills to pay, how can you not miss payments if you only have one pay day every month? Your debts may have their own payment schedules. So, it is possible that there are days you will not have the money to pay for your credit accounts.
You can apply for a debt consolidation loan or you can do it by yourself. Simply gather past bills, receipts and credit card statements to estimate the amount you need for monthly repayments. Or you can simplify the process by purchasing a DIY Clean Credit repair kit. It has step by step instructions on how to request for your credit report, dispute negative listings that shouldn’t be there in the first place and correct errors. Doing so will help you improve your credit score and create a solid financial plan to address your debt issues.
The moment you understand how you are managing your debts, you will be empowered to create a financial plan that will cover not only your repayments but profit-bearing investments as well. It is because you will be arming yourself with knowledge about your real financial situation. It is a wakeup call that everyone with bad credit needs.
Improve your Credit
The first step to improving your credit rating is to check mistakes entered into your credit file. If your bankruptcy is still recorded even if it has already been ten years since it was issued, you can dispute it legally so that the credit bureau will remove it from your file. Such record not only reduces your score but informs potential lenders and employers of your bad credit. DIY Clean Credit repair kit can help you do it the fastest and easiest way possible.
Make an enquiry today to eliminate your bad credit and move forward to a financially secure future.