- Pay your bills on time to avoid late fees. To maintain a good credit rating, contact your creditors if you are unable to pay when bills come due.
- Know Your Financial Situation. Determine your monthly living expenses, periodic expenses and monthly debt payments. Pay more than the minimum amount on your credit cards every month.
- Read your bank statement regularly. This can show up unnecessary expenses that can be avoided, such as monthly direct debits for things you never use. It’s also useful to stay on top of what you’re spending every month.
- Use Credit Wisely. Know the total you can comfortably afford and keep payments within 15% to 20% of your net income.
- If you have credit card debt, look around for and switch to credit cards with lower rates. Credit card companies change their offers all the time and many offer balance transfers at 0% APR for a period of time, reducing interest accumulating.
- Follow a realistic monthly budget. Follow it closely and evaluate it regularly comparing actual expenses with planned expenses.
- Distinguish Between Needs and Wants. Take care of needs first. Be careful with your wants.
- Set Financial Goals. Determine your short, mid- and long-range, wealth-building goals. Getting crystal clear on what you want and why, can be very powerful as a motivator.
- Don't Allow Expenses to Exceed Income. Pay down your credit cards, pay more than the minimum amount, and don't charge more on the card than you are repaying to your creditors.
- Save. For periodic future expenses, try: 1) Saving 10% to 15% of your net income; 2) Accumulating 3 to 6 months salary in an emergency fund; 3) Putting money in a Retirement Savings Plan or in other tax-deductible plans, such as savings for your child's education.
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