Stale Green Light

So the New Years Resolution was to save up the finances, gain some interest in the savings accounts, and prepare for whatever big thing you need money for.  Having money in the bank is a great way to get your finances in order, but there are other steps you should take to make yourself financially secure.

Some would argue that building  up your credit score to a number over 700 is even better than money in the bank.  That is because, realistically speaking, the average person cannot buy a house, or a car, or any other big thing without taking out a loan.

Having a higher credit score allows you to take out that loan easily and with lower interest rates that you have to pay every month.

Typically, by the time someone pays off their 30 year loan of 200,000, they have really paid three times that amount because of high interest rates they are required to pay with their mortgage payment each month.  A high credit score means lower interest rates, and less money to have to pay the bank for your home.

The start of a new year is a great time to apply for a credit card that you can use sparingly and strategically to build up your credit score.  This piece of plastic is not an excuse to buy more, you should still be saving a lot, but you should use it for purchases you would typically make with cash.

For instance, you were going to spend $50 in cash for your groceries this week, but instead you make the purchase with the credit card instead.  You have the money, you just decide to use the card so that 1) you can put a balance on your account and 2) get some free points or rewards from the company just for using the card.

Having a balance on your card for one month and then paying it off will increase your score because the bank knows you are keeping good on your word and will pay off your debts.  You still need to keep a budget and take care of your finances, you just get the added bonus of free stuff and lower interest rates on loans down the road.

The beginning is here.  It is now 2011 and it is time to start on that New Years resolution we talked about before.

The holidays are completely over, the eating must be controlled, schedules put back in order, and spending patterns back to frugality.  This all happens now that the new year has started and we need to start off on the right foot.

We now have several months before we need to start spending money on vacations and tuition so take this all important time to safely put away that paycheck every two weeks.  Schedules will help you curb your insane holiday spending sprees at the mall.

Now that vacation is over, everyday you will be at work and school, and for one month you will be at the gym a lot.  All that free time that you had for the past two weeks is long gone, which is actually a good thing – for your bank account at least.

Now you can get back to regular eating patterns and mundane schedules, where you keep track of everything you do and need to do.  Structure and stability are the key to financial success.

Put your money in the bank and let the interest add up in your savings account.  Keep track of you budget and stick to it!  You will appreciate  your frugality in a few months when you saved up enough to go to Cabo with your friends this summer.

The holidays are in full swing and that means that a lot of cash is being thrown down on presents, food, and travel costs.  The expenses add up really fast, and before you know it your savings account is drained in only two months time.

It is stressful and you wonder how you will recover and prepare for the next big things on the calendar; like tuition, summer plans, and and everything else that is just around the bend.  Well that is what New Years resolutions are for.

Make the commitment to cut back on spending and put your money away in a safe place every paycheck.   The expenses will slow down after the new year, and there should be no reason why you can’t build back up your savings in a few short months.

You just have to be safe and smart.  Take it day by day, and try to resist those little splurges while you are out running errands.

You probably don’t need those new shoes, and your can kids definitely wait for that $50 video game.  Christmas was the time for those things, but after the holidays pass you need to buckle down and look towards the future.

Budget your money wisely and try to put as much as you can into the bank every month.  If you can, put a large chunk into an interest bearing savings account so you are making money while doing nothing.

If you plan and take control, you can build your savings back up and get back to happy place where you are not completely stressed out about money.