Don't get tricked by Irregular Pay Periods - If one spouse is paid "every other Weds" and one is paid on the 1st and the 15th, pick one schedule to go with. For example, take the every other Weds paycheck and deposit it into a separate account and "pay yourself" on the 1st and the 15th.
Be aware of Irregular Bills - Have an interest bearing account where you pay a "simulated monthly bill" (much like a mortgage escrow account behaves) that builds up until the yearly/biyearly payment comes out.
Turn off everything in the house (as if you were on a trip) - When you go out for a long trip you likely prepare the house by turning things off. Why not do this all the time and work out a system where minimal things are on while you're at work? LCD or not, your computer monitor is a big light bulb. Forget screen savers, just turn it off.
Save for Property Taxes Monthly - In Oregon, Yearly Property Taxes tend to sneak up on folks. Save for those taxes, and everything irregular, in a regular way like your paycheck. Money in, money out, same every month, makes for a predictable lifestyle.
Call the Electric Company – Some electric companies give out Coupons for High Efficiency Lighting (fluorescent). Call yours.
Library Book/Videos Box near the Front Door - Don't pay late fees. Leave a shoebox near the door you leave from. Make it a habit to put things like library books and rental videos in that box and take them with you as you walk out.
Minimize Cell Phone Time - Somehow you survived the 80s and 90s without a cell phone. Save $75 a month or more by getting the plan that is the cheapest and hang up while driving.
Check Tire Pressure Weekly - Get a tire pressure gauge, or better yet, check your pressure everytime you fill up. Good tire pressure can get you another 5 MPG or more.
Know not just your Car's Mileage but your Dollars Per Mile - How much does it cost you to drive a mile? Is it 80 cents to the video store to rent a two dollar video? Maybe you should walk, or ride a bike.
Fill up, write down ODO. Drive. Fill up, write down ODO. Take Miles Driven and divide by Gallons. That is your Miles Per Gallon. Then take the price of a gallon of gas and divide by your Miles Per Gallon. That’s how much it costs to drive one mile.
Consolidate Trips - If you're out, get all your errands done in one trip. Avoid the "hub and spoke" model of returning home and heading out.
Cancel the local paper delivery - You pay for Internet, use it.
Cut Coupons and avoid waste - Bread lasts longest tightly bound in its bag, in the dark. Put Fruit in a paper sack in your fridge. Close lids.
Consolidate Insurance - Is your home and car insurance with different companies? You might get a discount if you consolidate.
Store Credit Cards are Satan - Cut up and close Store Cards. Call your existing Credit Cards and ask them if they can lower your rate. If they want your business, they will. Otherwise, leave them.
Know how your Cash Flows monthly - Monthly is usually the way to go if you're paid monthly or on the 1st and 15th. If not, find a boundary that works for you and get your life's inputs and outputs into a simple CASHIN-CASHOUT=SOMELEFTOVERCASH equation. Then, take the left over cash and save it. Take your checkbook down to some agreed upon number. We always "level off" to $300. Then next month you'll get a paycheck(s) and pay bills. Take the SOMELEFTOVERCASH-$300 and save it. Rinse, Repeat.
Thursday, September 13, 2007
Wednesday, September 05, 2007
Credit Score Basics
Credit scores are calculated using all of the available information about a person’s credit history. They take into account the person’s level of debt, level of available credit, employment status, homeowner status, and more. Many members of the finance industry use these to determine the efficacy of extending additional credit by way of loans and credit cards to an individual.
Typically, most people have a credit score that falls somewhere between 350 and 800. The higher the credit score happens to be, the better it is. It is difficult to get a high score over 700 unless you pay your bills on time all of the time, pay your loans off completely, and avoid defaulting ever.
Almost anything a person does that relates to credit cards and debt can affect a person’s credit score. If he acquires too many cards all at once, his credit score can drop. If he uses all of his credit cards to their full limit, his credit score can fall lower. If he cancels too many cards all at once, it could negatively affect his credit score and cause it to fall.
If a person has trouble keeping a job, this can negatively impact not only their credit score, but it can prevent them from acquiring a mortgage or car loan. If a person can’t keep a job, then he won’t be able to pay their bills. If he can’t pay his bills, his credit score drops even further.
It becomes a vicious cycle that becomes difficult to get out of. Once a bill is left unpaid, a loan goes into default, or employment becomes intermittent, these things remain on a credit report for quite a while. Some things can remain on a credit report for as long as seven years. It takes a long time to repair any damage to your credit score, so a person should be careful how he handles his debt obligations.
Credit bureaus keep track of a person’s credit score. The numbers vary because they use different formulas to find them. Although the credit scores vary slightly from one credit bureau to another, the numbers will not be that different. It is important to get a copy of your credit report several times a year to check on your credit score and how it was calculated.
If any false information is on your credit report, you can request that it be investigated and removed when it can’t be verified. Unfortunately, negative information such as several late payments, unpaid loans, and similar things can’t be removed from your credit report as long as they are true. A person should take the time to monitor his credit and maintain good credit behavior to achieve a good credit score.
Typically, most people have a credit score that falls somewhere between 350 and 800. The higher the credit score happens to be, the better it is. It is difficult to get a high score over 700 unless you pay your bills on time all of the time, pay your loans off completely, and avoid defaulting ever.
Almost anything a person does that relates to credit cards and debt can affect a person’s credit score. If he acquires too many cards all at once, his credit score can drop. If he uses all of his credit cards to their full limit, his credit score can fall lower. If he cancels too many cards all at once, it could negatively affect his credit score and cause it to fall.
If a person has trouble keeping a job, this can negatively impact not only their credit score, but it can prevent them from acquiring a mortgage or car loan. If a person can’t keep a job, then he won’t be able to pay their bills. If he can’t pay his bills, his credit score drops even further.
It becomes a vicious cycle that becomes difficult to get out of. Once a bill is left unpaid, a loan goes into default, or employment becomes intermittent, these things remain on a credit report for quite a while. Some things can remain on a credit report for as long as seven years. It takes a long time to repair any damage to your credit score, so a person should be careful how he handles his debt obligations.
Credit bureaus keep track of a person’s credit score. The numbers vary because they use different formulas to find them. Although the credit scores vary slightly from one credit bureau to another, the numbers will not be that different. It is important to get a copy of your credit report several times a year to check on your credit score and how it was calculated.
If any false information is on your credit report, you can request that it be investigated and removed when it can’t be verified. Unfortunately, negative information such as several late payments, unpaid loans, and similar things can’t be removed from your credit report as long as they are true. A person should take the time to monitor his credit and maintain good credit behavior to achieve a good credit score.