Personal Finance Tips

Life is much easier when you have good financial skills. How you spend your money impacts your credit score and the amount of debt you end up carrying. If you’re struggling with money management issues such as living paycheck to paycheck despite making more than enough money, then here are some tips to improve your financial habits.

Set a Budget

Budgets are important because they prevent overspending (assuming you stick to the budget).

Track Your Spending

Along with your budget, you’ll want to get into the habit of tracking your spending habits. You’ll probably be shocked by how much you spend ordering out or going to Starbucks five days a week.

Check Your Credit Report

Your credit report can help determine your credit score, so you want to make sure there are no errors.  Identify theft is a huge problem and there’s always a possibility that someone used your information to take out a loan, open a credit card or create other debts.

Be Careful about Co-Signing

When you co-sign, you are financially obligating yourself to be responsible for the debt if the other person doesn’t pay.

Keep Your Credit Score High

Keeping your credit score high will allow you to get better interest rates on cars, credit cards, personal loans and even a mortgage when the time comes. Good credit can save you a lot of money, so keep your score high.

Pay Yourself First

Here’s the idea: Don’t spend your money and save what’s left – instead, save first and then spend what’s left.

Credit Cards

When it comes to paying your credit card, settling for the bare minimum makes you a slave to interest.  Pay more than the minimum each month.

Start Saving for the Holidays now

Right after the holidays, you should start saving for next year.  Avoid holiday debt by limiting your spending to only what you have saved.

What’s Your Debt-to-Income Ratio? Calculate Your DTI

Your DTI shows how your debt stacks up against your income. Lenders look at DTI to ensure you can repay a loan.

Your debt-to-income ratio (DTI), along with your credit history, is a key factor in lending decisions.

Use our calculator to find out what your DTI is today!