Why You Should Improve Your Credit Score
Do you want to be financially healthy? If you do, improve your credit score. Financial health begins and ends with a good credit score. When you have a good credit score you will notice a big difference in the lower fees and interest rates you are charged. Even if you improve your credit score by just a tiny bit, the benefits will come your way. Shoot for a credit score above 750, that’s a good score. A credit score above 850 is considered to be a perfect credit score. Do you know your score?
A high credit score will lower the cost of everything you buy. If you improve your credit score, financial institutions like banks, mortgage companies and insurance companies will charge you less in fees, interest rates and premiums. Think about it, you get to keep more of your own money when you pay less for an auto loan, student loan, insurance or a mortgage. And that’s what financial health looks like, paying less, keeping more. When you are in good financial health, you are in control, you are in charge. And that’s a great place to be; which is why you should work on improving your credit score.
You Need Good Financial Direction
If you need help to improve your score, you will need a financial adviser that you can trust to give you good financial direction. Good financial advice involves more than a phone call from a financial adviser once a year. If you want to turn your finances around you will need an adviser that takes more of a hands-on-approach. You want an adviser that will work with you and take you through the steps of not only helping you improve your credit score but also reviewing your entire financial picture.
Your financial picture is a moving target. As your financial needs change, that target changes. And your financial needs change as your life changes. As you go through different stages of life, your financial priorities can adjust a bit. For example, your financial priorities are different when you start your first job. You probably do not even have a financial plan when you start a new career. But as you start to settle into your working years, you may start to see some financial goals that you want to achieve. And that is where good financial advice comes in handy.
Just Starting Out
Your financial priorities are different when you are just starting out. At that point your concerns may be more focused on improving your credit score so that you can lock in lower interest rates on credit cards and loans. You do not want to overpay on rent or utilities so when you are just starting out, a good credit score is a priority. But once you get that organized you want to start putting some money away. The best time to start investing for your future is yesterday. Time goes so fast. Do not let too many yesterday’s pass you up, start investing as soon as you possibly can.
New to investing? That’s okay, you just need some basic financial education. And here it is. In a nut-shell, the best way to accumulate wealth is to avoid debt. Sound too simple? Well, wealth accumulation is simple, if you just stick to the basics. Keep your expenses as low as you possibly can so that you always have a little money leftover to invest. If you follow the basic principle of living within your means, finding money to save will not be that hard. However if you load up your credit cards and have lots of outstanding debt, the interest rates you pay on that debt will always hold you back.
Accumulating wealth is a long-term process. It can be difficult at times, because you cannot spend more than you earn and still expect to save. You will need to cut back your spending. That can be hard to do when credit cards make it so easy to accumulate stuff.
Already Accumulated Wealth
If you already have an accumulation of wealth, you guidance of a different kind. You want advice on how to preserve your wealth. Your financial needs are projections and analysis.You do not want to exhaust your investments. You do not want to outlive your investments. Now, just because you had the expertise on how to make it, does not necessarily mean you have the same expertise on how to preserve it. Good financial services should have that expertise.
Where To You Find The Help You Need?
Your 401k plan
Some 401k plans offer financial advisers. These advisers can help you with 401k investment selections. The adviser can gauge your risk tolerance level. Give you an idea of how much money you will need to retire. Whether you are saving enough to meet your time horizon for retirement. Your 401k adviser can tell you if you are on track. What you can change to make your 401k investing better. Where you can make improvements in your other investments.
Your Auto & Home Insurance Agent
Your agent can help you save money on your insurance. The money they help you save, you can invest. Ask your agent how to save money on premiums by credit repair. Your credit score is one key to lowering your insurance premiums. By improving your credit score above 750 you will lower your insurance premiums. Maybe you can increase your deductibles to save money on insurance premiums. Maybe you can drop certain coverages that may not apply anymore due to the age of your auto or home.
Your Banker Or Accountant
Your banker can discuss ways for you to save money. Maybe refinance your mortgage to get a lower interest rate. Invest the extra money you save. Maybe your accountant can help you save money on your tax bill. Find additional write-offs, so more money stays in your pocket.
Make The Commitment
If you are serious about saving money and accumulating wealth, it will take a complete commitment on your part. You will need to make it a priority, not just a hobby of sorts. You cannot expect to save lots of money on a whim.
Saving money is hard work.
You will need to stay focused. You will need to watch your expenses, all of them, the big and small ones. No expense is too small to be ignored. It all adds up.
Yes, it begins with improving your credit score so that you pay less and keep more, but it doesn’t end there.