5 Things You Can Do Now to Avoid Stressing About the Future
You may be going through life thinking everything is great. You have a job, a car and after you pay the rent, you still have enough for food and an occasional night out. Sometimes, though, are you worried about what would happen if your car broke down, your rent increased or you wanted to buy a house or condo?
Open One or More Savings Accounts
If worrying about having enough money in your future keeps you awake at night, it’s time to start doing something about it.
Your first and most important step is to start a credit union savings account. You really need to consider this if you are currently living paycheck to paycheck. You can even open more than one savings account for each area of your life you are concerned about, such as “emergency fund”, “new car” or “house”.
Decide how much you need in each account and how long you have to reach that goal. Have those amounts routed into each account via direct deposit and it will never be your responsibility to transfer it in from checking, which can be a hard thing to do.
Clean Up Any Past Mistakes
Some things are easy to ignore until the collection calls start coming. If you have a parking ticket out there that you forgot to pay or if you canceled a credit card but it still had a balance, you shouldn’t ignore this. These places are reporting non-payment to the credit bureaus. If you haven’t cared what your credit rating is up to this point in time, you will soon.
Just making an attempt to set things right will count in your favor. Call the companies you owe and work out a repayment plan with them that you can afford.
Keep an Eye on Your Credit Rating
Regularly check your credit report so you will not have any surprises when you try to get a new credit card, buy a car, or apply for a mortgage. A good credit rating is 700. Anything less than this, and you may be considered a risk, be charged higher interest rates or even be turned down for credit cards.
Make sure you look at every section of your credit report carefully. If you see addresses or credit cards unfamiliar to you, file a dispute and get them removed. Follow all of the suggestions given to you on the credit bureau site and keep working towards increasing your number.
Apply For a New Credit Card
Assuming your credit rating is good enough to get a new credit card, this is one of the quickest ways to boost your score. It may seem counterproductive to get more credit cards. If you restrain yourself from maxing the cards out, though, you can quickly increase your credit rating.
One of the things that counts the most in your rating is something called “debt-to-income ratio”. Translated, this loosely means that you have more charged on your credit cards than you take home in pay. What you need to do is pay the balance on each card in full each month without being tempted to just pay the minimum due.
Pay Your Bills On Time
You may think it’s alright to skip your cable or electric bill once in a while. Maybe you have another big expense coming up and feel you can’t spare the amounts you would send to these companies. You probably also know that there won’t be a big late fee to pay, nor will there be annoying consequences like having your services shut off after just missing one month. Even if this is true, these companies will report that you missed a payment and you will literally get a red mark in your report and a decrease in your score. So be responsible and do the right thing, even if you’re tempted not to.
If you follow these five steps, you can stop worrying about your future and start looking forward to it.