Stale Green Light

President Obama finalized his budget plans for the rest of his term  and the decade beyond this week, calling for a 3.73 triilion dollar budget. The budget proposal stems from the President’s promise to lowert the deficit by wielding a scalpel to the orginal budget ideas.

Although the deficit will increase by another eight billion dollars, the President is hopeful that the deficit will drop to 1.1 trillion dollars in 2012, after the initial all time high of this year. The budget submitted plans for the United States to reduce it’s total deficit to 1.1 trillion dollars over the next decade.

Although there have been critics on both sides of the political fence regarding this issue, President Obama has assured people that budget cut decisions were made with the greatest care, to eliminate any pointless expenditures.

Whether or not you agree with the President on his plan, it is admirable that he is at least committed to the idea of fiscal responsibility and reducing the overall deficit that the United States owes.

Everyone has a stack of bills on their kitchen table or desk that they go through each month.  You sit down and you start to go through and write checks for every bill, and at the end you are scratching your head, not remembering how much you actually doled out.

There is an easier way to budget your finances and get your bills in order.  It’s called paperless.

Almost every company has an online bill pay option that you can use, which will make life easier, more organized, and make things go by a whole lot faster.  All that you have to do is enter your credit card number and you’re good to go.  You can even have your credit card number stored so that you only have to enter it once, and every time you pay a bill after that you just have to click your mouse and you will be done.

You can even make a spreadsheet to balance your account.  that way you will know how much money went to each company and when.  An excel sheet will automatically do the math for you so you know how much money is remaining in your account.

This is a fast, easy way to get your finances under control.  You do not need to hire an expensive accountant to manage your funds, you can do it yourself with some easy-to-use computer programs that will do most of the work for you anyways.

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.