Start Your Financial Journey: Tips on Budgeting and Credit

As you look up at the summit, it’s easy to feel discouraged at the enormity of the journey. You might even avoid it altogether. However, reaching the summit doesn’t have to be so complicated. Focus on one step at a time. Here are some tips and advice that can help you on your financial journey:

Budget

• Focus on the essentials. Make a budget, stick to it and save.
• A simple budgeting plan includes the 50/30/20 rule where 50% of your after-tax income goes to needs, 30% goes to wants and 20% goes to savings.
• The better you budget, the more peace of mind you can have knowing that your money is being well spent and that you’re setting money aside for your future.

Take Control of Your Credit

• Your credit is one of the most important indicators of your financial health. It shows lenders how creditworthy you are, which can affect your access to loans and credit that might be necessary for big transitions in the future. Want to buy a home, get a business loan or buy a car? Struggling with your credit can get in the way of that.
• For good credit health, you should know how your credit activity impacts your scores. Here’s a brief rundown of how your credit score is calculated:
  • On-time payments (35%)
  • Amount of debt relative to your credit limit (30%)
  • Length of credit history (15%)
  • Credit inquiries (10%)
  • Credit mix (10%)
• Once you know how your activity impacts your creditworthiness, you can begin taking actions that can help you reach your financial goals. To track your progress and find areas of improvement, the right tools can make all the difference. Let technology help you with that! Tools like credit monitoring and credit simulators can help you make the next right decision when it comes to positively impacting your credit scores and saving thousands in interest rates over the course of your lifetime.

Monitoring your credit report and scores and detailed analysis reports on how you can help reach your credit goals are only one step away.

Ready to Start Your Journey?