Planning for a Credit Worthy Future

 

Credit seems like a complicated fickle thing when you don’t understand it. There are many unforeseen and preventable things that can come about and bite you in the rear leaving you in a credit mess when you are not aware of the ground rules to good credit. 

The best way to avoid those messes or recover after coming out of a financial mess is to plan your financial future and set some boundaries for yourself for a better, more solid financial future.

Planning for your future can look like a lot of things and should involve many different aspects, like living within your means, things you want to accomplish financially, what you want out of your future credit, how you will build and maintain your credit and how you will set guidelines for yourself to avoid making common credit and financial mistakes. This blog post will briefly touch on each one of these to offer readers, regardless of age and current situation some insight into how to plan ahead for a credit-worthy future.

Living Within Your Means

What does this mean exactly, well it means not spending more than what you make each month. This is one of the hardest things for most American families to do, especially when your household expenses exceed your income. 

Ideally, you need to be able to pay all your bills on time each month and still be able to buy amenities like food and clothing, while also putting aside 20% to 30% of your income for savings. To live within your means can be making choices between eating out or learning to cook and eat home cooked meals most of the time, including taking lunch to work from home. 

There are lots of ways to creatively shrink your monthly expenses and live within your means.

What Do You Want to Accomplish Financially?

This is a big part of living within your means, because if you are just distraught over the situation and want to have more luxuries in life, then you simply need to earn more money. You should look at the life you would like to live and then estimate what it would take monthly to make that life happen.

Put together a plan to meet those needs before you start living that way. That could be as simple as seeking out additional training in your industry, working towards a job promotion or asking for a raise, changing jobs or taking a second job. The important thing is to always stay within your current means, even if you are looking for a way to increase your income. 

Until you are making that higher income, it is not available to you.

What Do You Want Out of Your Future Credit?

Most will answer buy a house, buy a car, vacations, college for the kids and retirement. These are all valid reasons and should be part of your goals depending on your family and personal situation, but all these things and many like them require decent to good credit and some careful planning to obtain in a secure, responsible way.

Think about the types of things you want in these areas and speak with professionals in those industries to get a clear picture of what it would look like on paper. This will give you a realistic look at what it takes to get both your credit and savings healthy enough to help you afford and finance the things you want. 

Build and Maintain Your Credit

To build and maintain a good credit score you need to stick with the guidelines surrounding the living within your means section and that also includes paying your bills on time consistently month after month, year after year.

This is not always possible but it's what everyone should strive towards. If you have setbacks beyond your control in this area you should work towards getting back on track as quickly as possible building and maintaining good credit because bad credit also increases the interest rates you pay for credit and insurance!

Set Guidelines for Yourself

It’s important to set some spending rules and good habits for yourself. Don’t completely deprive yourself because that will only lead to failure and can have catastrophic results for your finances and future. Instead, set some ground rules with occasional indulgences and stick money aside in savings for the big rewards.

•  Smart money practices will always win out over excess in the long run.

MyCreditSystem is not just a DIY credit repair system for those already in trouble it is a Credit Education Program that helps you repair your credit yourself and also empowers you with the knowledge to keep a good credit score and maintain your credit rating. 

It's a great gift for High School Seniors and College Students so that they learn early one how to avoid the pitfalls of credit recklessness and also how to get out of it if they need to. They can also build a business around it! Who knows maybe your teenager or young adult is the one that fixes everyone's credit in the family or your neighborhood?

To learn how you, your teenager or young adult can build their own business helping their friends and family fix their credit sit with them and watch this video