Having a Good Credit Score

The popularity of my credit score discussion has led me back to my first blog in a while. Thank’s everyone. I needed some time to be alone after losing a wife, house, and two puppies.

Managing money is easy if you follow a few rules.

First:

Cash is your friend. Anything you can do to get a disposable cash income, then that will set you ahead every time. Using credit is best if you use only what you can afford to pay the following bill. If you need to put on more, like when moving or facing unemployment, then pay it off as soon as possible.

I accumulated $8,000 of debt during the divorce. I liquidated a 401k to wipe it out and settle with the ex-spouse. I did nothing but drive to the store, the doctor, and my church and cooked all my meals for a solid 3 months. Now I don’t have to do that, and it is starting to improve my quality of life in Colorado.

Pay cash for as much stuff as possible. It’s cool if you use your debit card, but stay away from the credit card for nothing more than a $100-$200 impulse. Like a video game, date night, or steak dinner. Like, once a month or every other month or something. Pay it off next income check.

Loans that are acceptable:

Student Debt (Thinks Family)

Cars

Homes

Medical

There may be others, but you want to keep your list small. 1-5 debts at the most, I would say.

Find a good job on the side. I did IT work for cash in California. I mowed lawns in Texas. I know guys that work construction for cash. It’s whatever you can find.

To find a place to stay, look for places or people that will take cash. Many landlords don’t mind.

Second:

Have at least enough savings to go one month, but 3-6 is better. It may seem impossible to save that, but don’t go out to eat as much. Only drive if you absolutely need to. Give up a vice. Use that extra cash to put away as much money as possible. Splurge on occasion. Like take a vacation when you hit $5000 or $10,000 or some amount you set. Treat yourself.

You earned it!

Third:

Pay everything off early. I got a $6000 loan for a truck to buy it and fix it up. I have a 48 month contract. I’m not waiting the full 48 months to pay it off. I paid off my school loans in two years after graduation. I sold a home for a profit in California to cover the expense.

Lastly, don’t forget about people. Take the wife to a ballet or musical. Give something to the homeless person. Give something to your church if you don’t volunteer. Do something good with it. Buy friends a meal or a movie ticket. Be generous. You can because you have the money you need to live the next year or two without working. So take a month long vacation. Hell, take a year long sabbatical. I’ve done it twice.

Worth it.

If you have any more questions, let me know.

Wagen, over and out.

 

 

 

 

 

 

 

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