submitted by Joan Reading, President, Credit Counseling Center, www.ccc-credit.com
- Create a working spending plan so you know what is coming in and what is going out. Know your financial situation, set financial goals – it helps to know what you are working for.
- Have money automatically deducted from each paycheck and deposited into a savings account- for future expenses, car repair etc. You can also have several savings accounts for different categories, house repair, and car repair or college savings. Keep a record of what you spend daily – this shows you where you are spending your money. And, distinguish between wants & needs.
- Use credit wisely – pay off your balance each month so you aren’t spending unnecessarily on interest rate and other credit card fees. If you have more than 20% of income on credit cards it time to park them.