7 Personal Finance Tips To Master Your Finances

Financial Basics

1. Create a Financial Calendar

To help remember to pay your quarterly taxes or pull a credit report, you should think about setting up appointment reminders for these important financial matters the same way that you would your yearly doctor’s visit.

2. Find Out Your Interest Rates

Q: Which loan do you pay off first? A: The loan that has the highest interest rate.

Q: Which savings account should I open? A: The savings account that has the best interest rate.

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3. Keep Track Of Your Net Worth

What is your net worth? Your net worth is the difference between the value of things you own and the value of what you owe.  These numbers can tell you where you stand financially.

4. Set a Budget

Your budget is the starting point of every financial goal in your life.

5. Consider Paying With Cash

If you overspend when using credit cards, consider only paying with cash only.

6. Read Books on Finance

Richest Man in Babylon, Rich Dad-Poor Dad

7. Put at Least 20% of Your Income Toward Financial Priorities

10% of your savings should be put away for savings

10% of your savings should be put into investment which can bring a moderate or high return.

Can You Spot Credit Repair Scams

You may see credit repair ads claiming that your bad credit can be fixed easily. Some of these are credit repair scams and the simply collect your money and give you nothing in return.
I’d avoid new businesses even though just because their new doesn’t mean they aren’t any good.  I’d just prefer to go with a company which has been around for years. Companies that tell you only the credit-repair company can remove old or inaccurate information or that they can remove everything. These claims are false.

can-you-spot-credit-repair-scams

Be on alert if they want you to pay by Western Union or Money Gram as these are common ways scammers ask to be paid. Any licensed business will have a business bank account. Having the license does not ensure they aren’t crooks but, it’s just another thing to check for.

Avoid new credit identities

If you have terrible credit or have recently filed for bankruptcy, you may be targeted by schemers trying to sell you some ones social security number as your new credit file number, this number may belong to another person or be made up. If you score is that bad it may be best to add tradelines to your own credit files. If you use another persons number, you could face fines and or be imprisoned for Fraud & Identity theft.

Other Credit Related Scams

Consumers looking to fix their credit easily  are often targets of other credit-related scams:

Such as the “Credit by phone”: Pay-per-call services have become a popular vehicle for credit repair scams. False Advertisements promise that “guaranteed” credit or cash loans are only a phone call away. But after calling and buying the product, it may turn out to only be a booklet or a list of banks offering low-interest credit cards.

Anything a credit repair company can do you an to. they only use the available laws to repair your credit. If you knew the laws and had the time and patience required to d credit repair then you could repair your own credit. As you do this,. the credit tradelines that you open and pay on time will raise your credit scores. So beware of credit repair scams.

High Interest Credit Cards

High interest credit cards are very easy to get but, the interest rate only matters if you carry balances your balances. People who have had judgments, bankruptcies or have a bad credit rating are most likely to apply for high interest credit cards. Many low interest credit card issuers will allow you to transfer balances from higher interest credit cards but you must have a good credit rating. One of The most important things about balance transfers is the amount of money it will potentially save you over time if you have a high interest credit card/s that you carry a balance on.

Credit

Be aware some credit card companies will try multiple methods to get you signed up and then if your late on a payment for any reason, they charge large fees. This could happen even if your credit card payment is only one or two days late. Those considering applying for a major high interest credit card to establish or re-establish new credit should always consider the total price they will pay. Even those who don't qualify for low interest credit cards should still shop around and compare other cards to make sure you get the best deal available.

Interest

Most credit card issuers base the interest rates you'll pay on your credit score. This tells them how you use your credit and if you pay your bills on time or not. If you have a card that has high interest rates you NEVER want to carry a balance. If you do get a low interest credit card and ever make a payment late, the higher default interest rate goes into affect, sometimes it's up to 25 percent, making it very hard if not impossible to pay the bill off. The difference between high interest credit cards and low interest cards could cost you hundreds and even thousands of dollars each year.

Getting your high interest credit cards paid off as soon as possible should be a top concern if you do have those. Whenever your credit scores improve try to transfer all high interest credit card balances, some transfer cards even offer a 0% introductory offers for balance transfers, making it easier to pay off your debt much faster. This is actually another subject which should be taught in school instead only being taught in schools of business finance classes.

Good & Bad Things About Prepaid Debit Cards

Today it’s almost impossible to get by without having some type of credit card. From being able to make a purchase online to filling up you car with gasoline to checking into a hotel room a credit card is helpful. So what are you supposed to when your credit is not good enough to get a regular credit card and you can’t get a secured credit card. A prepaid debit card could be exactly the thing you need. Now, what are the good and bad things of getting a prepaid debit card?

An advantage of using prepaid debit cards is that you can use them without going into debt. When you use prepaid debit cards you have to pay in advance so there’s no bill at the end. This way, prepaid debit cards are more like cash than like a traditional credit card where you get billed every month.

Another benefit of prepaid debit cards that appeals to many people with bad credit is that you do not have to worry about going into debt.

Another really huge benefit of a prepaid debit card is that you do not need to have good credit to get a card. Just pay the activation fee, deposit money and you’re ready to use your card.

Some bad points of having a prepaid debit card is you need to report if it’s lost or stolen right away since there are stricter guidelines pre prepaid debit cards as opposed to a unsecured credit card. There are  also monthly fees that you need to keep a look out for.

Also with pre paid debit cards you may not be able to rent luxury vehicles or sign up online for different types of websites. Many  large car rental agencies require a a debit card which is linked to bank account, this is so they can charge your account if you owe them.