Credit repair can produce exciting results. It is fantastic to see derogatory information fall off your credit report. But in the long run your credit repair results must be maintained carefully. And the best insurance against the return of credit problems is a healthy savings account. Savings will provide a buffer against unexpected expenses, open doors of opportunity, like the purchase of a home, and provide a wonderful feeling of self esteem. Savings is not always easy, but there is nothing more important to your financial health. Here are some tips on creating the savings habit.
Pay Yourself First
Your pay everyone else, the landlord, the electric company, your auto finance company, etc. Try putting yourself on the list. The next time you get paid consider that you owe yourself a percentage of your own income. Write yourself a check and deposit it into a saving account. Prepare yourself emotionally by feeling that this is a real obligation that is every bit as important to your existence as paying the electric bill. Your credit repair success depends on it. Wait until you see how great you feel.
Build a Budget
Don’t run your financial life in the dark. And don’t imagine that you can handle the math in your head. Build a real budget, and put it in writing. Get a pad of paper and a pen, pull out your checkbook and your credit card statements, put on your thinking cap, and get to work. List every expense you can think of, from the big monthly obligations to the most trivial daily outlays. Don’t neglect anything or it may come back to jeopardize your credit repair success later.
Try Cutting Costs
Once you have created a budget and have a nice list of all of your expenses in front of you there is an excellent opportunity to consider money saving possibilities. Try thinking creatively. Ask yourself if you can do without a particular item. Cost cutting does not have to be an austerity. Simplification can be a spiritually fulfilling exercise. Think outside of the box, you may discover that there are unexpected opportunities just waiting for you. A penny saved is a contribution to the long term maintenance of your credit repair results. Good luck!