Money is our primary resource in life. We need it to survive and achieve many of the goals that we have for our lives. It’s right up there with water and air – because without it there is no shelter, food, clothing… etc. Over one-third of adults spend more than they make and about 70% live paycheck to paycheck.
In today’s economy living (and all the expenses that come along with adulting) can be incredibly expensive. We all have rent or mortgage, transportation costs, food expenses… etc. It takes a lot just to live comfortably. On top of our regular bills and obligations, it’s also important that we make saving and investing a priority – for long-term financial freedom.
January is just around the corner. It’s the time of year when we start to think about fresh starts, new beginnings, and goals we want to achieve. Most of us focus on health and fitness goals, relationship goals, and even travel goals, but now is the time to start looking at our finances.
We’re in that time of the year that exposes all of our financial shortcomings. The holidays have a funny way of reminding us that we need to pay closer attention to how we earn, save and manage our money. While the world is focused on purchasing Christmas gifts and holiday parties, you may be trying to figure out how to make everything work and not go broke before January 1.
The essential component to most financial goals – unless, of course, you’re a trust fund baby – which I am not. And if you’re like me, then you need this simple guide to understanding your credit.
Whether you’re preparing to buy your first home, self-fund a business idea, or need to upgrade your ride, your credit will likely be front and center for the process.
Your credit score is the key indicator that lenders use to predict creditworthiness. If you have a history of paying your debts in a timely manner each month, creditors see that as the model for how you will handle future credit obligations – and they will see you as less of a risk for extending additional credit.