Resumo de Simple Steps To Manage Your Money

Chapter1 You and your money Stay on top of your finances The most important thing about money is to stay on top of your finances, know how much you have, how much you make and how much you spend. Without this basic understanding you cannot move effectively to make money. I know some people that make very descent incomes, and yet they have debts over their heads to the point where collection agencies are calling them all day long. Do not spend more than what you make. Keep good credit One of the important things is that no matter what you read anywhere, it?s very hard to get money from a bank when you have bad credit, unless you want to spend a good part of your life paying interests on it, so build your credit and keep it in good standing. How do you do that? To avoid when you are not dealing with your bank, because of a lot of scams around it: Secured credit cards, banks will give you a credit card if you make a deposit to your account and have a credit limit in the amount of your deposit. https://wwwa.applyonlinenow.com/CANapp/Ctl/r edirect?CV_sourceCode=bmob&CV_language=enhttp://www.landing.orchardbank.com/media/dis closure?cmd_lpage=&indicator=OB005&media=O2PS08A200706014789ENUse credit programs for retail stores for relatively large purchases like furniture or appliances. For example, you may buy a Plasma TV on the ?$60/Month Payment Plan? or get a Home depot credit card and keep a small balance. These programs are usually easier to qualify for. Be sure that the retailer will report your loan to the major credit reporting companies. I also like gas cards because they?re easy to obtain and useful at the same time. http://www.homedepot.com/webapp/wcs/stores/s ervlet/ContentView?storeId=10051&jspSto reDir=hdus&pn=Credit_and_Extended_Finan cing_Promotions&catalogId=10053&langId=-1Get a credit card with any reputable institution, I prefer cards without yearly fees but if you can?t get one, then try getting any. http://www.capitalone.com/creditcards/jb1103 _compare.php?layout=vertical&perk=apr&a mp;external_id=WWW_Z0005_Z03_ONL-SE_ZZZGO_ZZ_ZZ_T_SEM2Buy a car: A good way to start since everyone has a car, is to buy one and take a credit from the automaker, they often offer good rates and build your credit at the same time. Check your credit once a year: http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm https://www.annualcreditreport.com/cra/index.jsp Credit cards I love credit cards, credit cards reflect the American dream; they give you the power to make money without any. In many countries like France, credit cards are not a given, and the cards you actually get there are more like debit cards and in a very limited credit amount. Once you do a purchase there, you have to pay it off at the end of the month; in fact the bank doesn?t ask you, the money is directly debited from your bank account. As I said, I love credit cards, but do me a favor, if you have good credit and you pay an annual fee, call the credit card company and cancel this card, throw it away. Today there is absolutely no reason to own a credit card which carries an annual fee, so many don?t, including American express. Unless, unless they give you rewards that worth more than your annual fee; And please be careful, read the small print, if it says 5% reward, most of the time it?s only on a limited number of purchase type, in reality most of the time you will earn only a fraction of that. Have a plan Every time you invest, have a plan; it?s easy to place money, but if you don?t know when to sell or if you don?t have a plan then you might loose your profits in the long run. Think of all the scenarios when you invest so there is no surprise, always take into consideration the worst scenario, can you handle it? Know your budget, see how much you spend, and how much you have, how much can you save or use to reimburse a credit. Create 4 columns, one with expenses, one with income, one with your debts, and one with all your assetsincluding the value of your real estate, do not forget unexpected expenses, so if the car breaks down you can cover it, and no, do not include bonuses, if your boss decides there won?t be a bonus this year you don?t want to be surprised. Subtract your debts from your assets, subtract your income from your expenses, now you know your net worth, and you know how much money you have after paying your expenses. Know what your goal is, do you want to pay off your mortgage fast or do you need to buy a new car? If you need to buy a new car, what would be the rate on the car loan, is it the same or more than your home loan? If yes, then you?re better off saving for the car payment rather than overpay your mortgage since the home loan is deductible. Once you know what you have, what you own, once you have a goal and a plan to achieve it, you can start thinking investments and using these nice tools.

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