Author : Stuart Lieberman
"Financially Fit" Make this your Resolution for the New Year!
When it comes to health, we all go for a medical checkup to see if were physically fit. The medical report tells us everything about our health. But, when it comes to wealth,
it is as important that we do a regular checkup for our financial health. We need to
know where we are financially before we decide what we want to achieve financially.
But, how do we determine our level of financial fitness?
financial freedom Easy! We can use financial statements to get a snapshot of our financial fitness. These are income statements and balance sheets.
If this sounds boring and alien to you, well, to be honest, the process is somewhat tedious as you need to dig out things and get them organized in a proper way. But, we can tell you that once you've done this checkup, you will have a clear picture of where you stand financially and you can begin to take the necessary measures to achieve financial freedom!
And, what's more, you'll be in control of your money and know how to spend it more wisely!
CREDIT COUNSELING
Let's get started!
Determining your Financial Fitness
Your Income Statement
First you can prepare an income statement. An income statement is also called a profit and loss (P & L) statement. This statement consists of two sections: monthly income and expenses:
Your income is comprised of salary, any rent you receive from real estate, dividends from stocks and bonds, interest from savings accounts, and any royalties you may receive.
Your expenses consist of food, clothing, utilities, car loan payments,credit card payments, home mortgage payments, medical expenses,entertainment, insurance payments, money you may give to charity, taxes you pay, and money that goes towards education.
List down your income and expenses into each section accordingly. Then, calculate your total income and total expenses.
Once you've done this, it's time to calculate your net income. Net income is the difference between your gross income and expenses:
Net income equals gross income minus expenses
If you come up with a negative net income, it tells you that you spend more money than you make. You'll have to make a plan to either reduce your spending or increase your income.
Your Balance Sheet
The next step is to prepare a Balance Sheet. Like income statements, balance sheets also have two sections: Assets and Liabilities.
Assets are your cash, real estate, car, bank accounts, stocks and bonds, mutual funds, retirement accounts, and businesses.
Liabilities include mortgages, credit card loans, car loans, personal loans, education loans, and taxes.
Prepare your own personal balance sheet by listing down your assets and liabilities. Calculate your total assets and total liabilities.
OK! Almost there! The next step is to calculate your net worth. Net worth is the difference between your total assets and your total liabilities: Net worth equals assets minus liabilities.
Do the math! And, give yourself a pat on the back for coming this far with this exercise! By doing this simple exercise, you are one step ahead of many, many people.
So, are you financially fit?
budget The new year is an ideal time for recommitting ourselves to things that are important to us. And what could be more important than being financially fit? And, what could be better than starting fresh in a new year?
Now is the time to set your goals.
Here are our picks for the most important resolutions for financial fitness in the year 2005 and beyond:
* If you don't have a written budget, do one now! If you do have a budget, resolve to stick to it!
* Resolve to take advantage of your employer's retirement plan, if one is offered where you work.
* Resolve to start a savings plan! As little as 5% of your weekly take home pay really starts to add up when it is put into an interest-bearing account such as a money-market or tax-deferred IRA.
* Resolve to get your credit cards under control! Think twice before whipping out the plastic at the cash register.
* Resolve to educate yourself about financial matters such as budgeting, the proper use of credit, and saving for special occasions and retirement. Learn all you can about getting it together financially. A New Horizon's team of Certified Credit Counselors can provide you with information that can help you in every area of your financial life.
* Resolve to set and stick to your financial goals. You wouldn't start out on a long road trip without a road map, so why attempt the road to financial freedom without a plan?
* Resolve to get starting NOW on the road to financial freedom!
This year, resolve to become Financially Fit! Like physical fitness,the effort you put into fiscal fitness is worth the sacrifice when you experience the outcome of Financial Freedom!
Stuart Lieberman writes for A New Horizon Credit Counseling Services, offering debt consolidation and Credit Counseling services for those with credit card debt.
Article Source: http://EzineArticles.com/?expert=Stuart_Lieberman.
Read more!
12/14/09
12/11/09
How to Avoid Credit Repair Problems
Author : Jeff Williamson
Finding a legitimate credit repair agency can be a difficult proposition these days. Everywhere you turn there are credit agencies advertising on the radio, TV, internet and even in your email box. So where can you turn to find a real company that will actually repair your credit instead of just steal your money? Well depending on where you live the answer may be different but here are some pointers you can use to weed out any credit repair scams.
First, be careful not to pay anything up front. Rule number one for any scammer is to get your money as soon as possible, so it should come as no surprise a lot of shady credit repair companies try to do the same thing. They try to get your money out of your hands before you realize how little they've done for you. Never ever pay for a service like this up front, always hold on to at least some of the payment until you are sure you got what you were paying for.
Next, any company that promises you that they can delete real information from your credit report is flat out lying. They can't because it's illegal to do it. We all have missed payments somewhere in our lifetime and some of us had situations where we just couldn't pay. It's certainly understandable but it happened and it's a part of our credit, you can't just make it go away, as much as you might wish it would.
Last, any company that tells you that you can't negotiate on your own is more than likely trying to get you to buy their business instead. There is no reason why you can't contact any of the three major credit agencies and try correcting any errors on your credit report. There is also no reason why you can't consult them on how to improve your credit report. Credit repair companies are trained to have responses that try to sell you on their product, after all it's their job to convert you, so be prepared for them to try to sell you if you want to work on your own.
Our credit reports are valuable to our finances and our futures, but many of us find ourselves in situations where we need credit repair situation that we need help with. If you would like advice on fixing your credit or avoiding emergency credit repair scams visit us at EmergencyCreditRepair.org for more information.
Article Source: http://EzineArticles.com/?expert=Jeff_Williamson.
Read more!
Finding a legitimate credit repair agency can be a difficult proposition these days. Everywhere you turn there are credit agencies advertising on the radio, TV, internet and even in your email box. So where can you turn to find a real company that will actually repair your credit instead of just steal your money? Well depending on where you live the answer may be different but here are some pointers you can use to weed out any credit repair scams.
First, be careful not to pay anything up front. Rule number one for any scammer is to get your money as soon as possible, so it should come as no surprise a lot of shady credit repair companies try to do the same thing. They try to get your money out of your hands before you realize how little they've done for you. Never ever pay for a service like this up front, always hold on to at least some of the payment until you are sure you got what you were paying for.
Next, any company that promises you that they can delete real information from your credit report is flat out lying. They can't because it's illegal to do it. We all have missed payments somewhere in our lifetime and some of us had situations where we just couldn't pay. It's certainly understandable but it happened and it's a part of our credit, you can't just make it go away, as much as you might wish it would.
Last, any company that tells you that you can't negotiate on your own is more than likely trying to get you to buy their business instead. There is no reason why you can't contact any of the three major credit agencies and try correcting any errors on your credit report. There is also no reason why you can't consult them on how to improve your credit report. Credit repair companies are trained to have responses that try to sell you on their product, after all it's their job to convert you, so be prepared for them to try to sell you if you want to work on your own.
Our credit reports are valuable to our finances and our futures, but many of us find ourselves in situations where we need credit repair situation that we need help with. If you would like advice on fixing your credit or avoiding emergency credit repair scams visit us at EmergencyCreditRepair.org for more information.
Article Source: http://EzineArticles.com/?expert=Jeff_Williamson.
Read more!
12/6/09
Credit Repair Tips
Author : Ian Stansworth
If you find yourself with a bad credit rating, it can sometimes be very difficult to get your finances back on the right track again. However, even if your credit rating is currently poor, there are things you can do to improve your situation and help get your credit rating back up to a good level. When attempting credit repair in the UK, it just takes a little planning and dedication with regards to the process, as well as a bit of know-how as to where to start and what steps to take.
If you currently have one or more open credit cards, make sure that you start to make at least the minimum payments required on time each month, even if you have paid them late in the past. Although it will seem like you are not making any progress on paying down the balance, you have to at least get the minimum payments made on time, so that you can start to repair any marks against your credit that have resulted from making these payments late. You also want to avoid applying for any additional credit at this point, because it will be likely that you will be turned down, which will do even more damage to your credit rating. Instead, concentrate on paying cash for any new purchases as often as you can. If you absolutely have to use a credit card, make only small purchases using one of your existing credit cards, and pay them back promptly each month.
If you are currently behind on any loans or credit card debts, do not ignore the problem as it will only spiral out of control making it more difficult for you to repair your credit. Make an effort to contact the lender, and see if there are any arrangements that you can make to help alleviate the problem. Lenders are generally more than willing to work with you to solve problems, and your lender might be able to restructure your debt into a repayment structure that is more manageable for you. This is much preferable to falling further behind on your payments and negatively effecting your credit rating even further.
If you currently have bad credit, but do not have any credit cards, you can help to improve your credit rating by applying for a high interest credit card. While this might seem to be a step backwards, if you use it only to make small purchases, and pay them back on time every month, this can help you greatly in rebuilding your credit rating.
Another important thing to keep in mind when working on credit repair in the UK is to check your credit history and examine it carefully for any possible mistakes. If you find errors on your credit history, go through the process of getting these items corrected and removed from your credit history, as erroneous negative entries on your credit record can be extremely detrimental to your credit rating. These mistakes are often very easy to get fixed which can make the difference between a bad credit rating and a good one.
Article Source: http://EzineArticles.com/?expert=Ian_Stansworth.
Read more!
If you find yourself with a bad credit rating, it can sometimes be very difficult to get your finances back on the right track again. However, even if your credit rating is currently poor, there are things you can do to improve your situation and help get your credit rating back up to a good level. When attempting credit repair in the UK, it just takes a little planning and dedication with regards to the process, as well as a bit of know-how as to where to start and what steps to take.
If you currently have one or more open credit cards, make sure that you start to make at least the minimum payments required on time each month, even if you have paid them late in the past. Although it will seem like you are not making any progress on paying down the balance, you have to at least get the minimum payments made on time, so that you can start to repair any marks against your credit that have resulted from making these payments late. You also want to avoid applying for any additional credit at this point, because it will be likely that you will be turned down, which will do even more damage to your credit rating. Instead, concentrate on paying cash for any new purchases as often as you can. If you absolutely have to use a credit card, make only small purchases using one of your existing credit cards, and pay them back promptly each month.
If you are currently behind on any loans or credit card debts, do not ignore the problem as it will only spiral out of control making it more difficult for you to repair your credit. Make an effort to contact the lender, and see if there are any arrangements that you can make to help alleviate the problem. Lenders are generally more than willing to work with you to solve problems, and your lender might be able to restructure your debt into a repayment structure that is more manageable for you. This is much preferable to falling further behind on your payments and negatively effecting your credit rating even further.
If you currently have bad credit, but do not have any credit cards, you can help to improve your credit rating by applying for a high interest credit card. While this might seem to be a step backwards, if you use it only to make small purchases, and pay them back on time every month, this can help you greatly in rebuilding your credit rating.
Another important thing to keep in mind when working on credit repair in the UK is to check your credit history and examine it carefully for any possible mistakes. If you find errors on your credit history, go through the process of getting these items corrected and removed from your credit history, as erroneous negative entries on your credit record can be extremely detrimental to your credit rating. These mistakes are often very easy to get fixed which can make the difference between a bad credit rating and a good one.
Article Source: http://EzineArticles.com/?expert=Ian_Stansworth.
Read more!
