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Build an Emergency Fund

admin — Mon, 09 Jan 2012 13:34:16 +0000

Financial emergencies happen in everybody’s life, whether you’re single or married. For this reason, everyone needs a little money put aside to cover unexpected expenses, such as unexpected medical expenses, home repairs, or a job loss. So establishing an emergency fund should be one of your first financial planning goals. Unfortunately having money set aside for emergencies is difficult to do, but it must become part of your total financial strategy. Always remember that your emergency fund won’t build up overnight, but your regular efforts add up over time.

How much do you need for emergency fund? Many financial experts recommend to keep three to six months’ worth of salary in an emergency fund, and some experts advise saving money enough money to cover anywhere from 6 to 13 months of expenses. There are a number of ways to save money for emergency needs. In general, emergency funds should be available just about instantly, or within days. So you can save your money for emergency expenses in a high-interest instant access savings account – these accounts do not require any notice to withdraw funds.

Set Your Financial Goals

admin — Fri, 06 Jan 2012 15:11:27 +0000

You wouldn’t start out on a long trip into unfamiliar territory without a road map, yet many people go through life without a concrete plan for their financial future. Setting financial goals is one of the most important steps for gaining financial control. When you have a goal, you have the motivation needed to follow a money-management plan. So always remember that you should set financial goals, no matter what your age.

Financial goals may be short-term, medium-term, or long-term. Short-term financial goals are things that can be accomplished in a relatively short span like within a 6 to 24 month period of time. Medium-term goals are those you wish to achieve in the next two to five years, such as wish to save money for college or for a future purchase or need.

Long-term refers to projects or financial goals that need funding five or more years from now. For long-term goals you probably have hopes for a comfortable retirement, the opportunity to go places and do things you’ve always wanted, buying a second home, starting a business, or a chance to provide security for your heirs. To keep your financial goals congruent with your personal values, reevaluate your goals frequently and adjust them when necessary.

Increase Your Credit Score in Easy Ways

admin — Mon, 02 Jan 2012 15:38:18 +0000

The importance of a good credit rating really can’t be underestimated. A high credit score will get you the best interest rates on credit cards and loans, including mortgages. You will generally qualify for the best interest rates if your credit score is in the mid-700s or higher. You can improve your credit score in several ways, however nothing happens instantly. Improving your score will take a lot of discipline, and time. Here are several tips to improve your credit scores.

1. Start paying your bills on time
Pay them a day or so early if you can, because if they are even a day or two late it affects your score. If you want good credit and don’t want to worry about missing due dates, some kind of automatic payments is the answer for many, if not most, of your obligation.

2. Be careful with your credit cards
Thirty percent of your score is based solely on how close you are to maxing out your credit cards. Using credit cards less frequently is one of the easiest ways to increase your score.

3. Don’t apply for many cards at once
Lots of activity at one time makes credit people nervous and their computer think you must have a cash-flow problem, and they lower your score.

4. Pay down your debt balance
This is the most immediate and dramatic way to increase your score. If you are serious about improving your credit score, then start with the largest debt you have and start paying it down so that you are using a less large percentage of your credit total.