Your money plays an important role in your life – it pays the bills, helps you save for the future, and funds your hobbies and interests. If you aren’t careful with your finances, you could find yourself in financial distress. Fortunately, there are ways to secure your finances by managing the money you already have, such as through the following five tips from Thomas B. Patterson and Piedmont Credit Union .
1) Know Your Score
Your credit score is one of the most important factors in your financial life. It can affect your ability to get a loan, qualify for a mortgage, and even get a job. That’s why it’s so important to know your score and understand what goes into it.
2) Use Alternative Financial Services Wisely
There are many alternative financial services available to consumers these days. Some of these services can be very helpful when used wisely, but they can also be very costly if used recklessly. Here are five ways to use alternative financial services wisely
3) Protect Personal Information
Thomas B. Patterson is the President and CEO of Piedmont Credit Union, and he knows a thing or two about securing your finances. Here are his top five tips for making sure you keep your personal information safe:
1) Have antivirus software on all computers in your home.
2) Update anti-virus software regularly.
3) Install an antispyware program for additional protection from cyber criminals looking to steal information from you computer.
4) Keep password protected files hidden in locked drawers, use encrypted flash drives when sharing data over networks or email and install an ID Theft Tool that can help identify any discrepancies on your credit report so you can correct them before they become a problem.
5) Change passwords regularly!
4) Follow Appropriate Credit Card Rules
1. Check your credit report regularly. This will help you identify any potential fraudulent activity and resolve any errors that could be dragging down your score.
2. Keep your credit utilization low. Only use a small portion of your available credit so that lenders see you as a responsible borrower.
3. Make your payments on time, every time. This is one of the most important factors in maintaining a good credit score. Don’t open too many new accounts: 5 new accounts opened in a year can have an adverse effect on your credit score.
If you’re planning to apply for a mortgage, get pre-approved first: this way, you’ll know how much house you can afford before making an offer.
5) Build Good Habits from an Early Age
One of the best things you can do for your financial future is to start building good habits from an early age. Here are five ways to get started -Save a small amount of money every week (or month) in a savings account, even if it’s just $20 per month.
-If you have credit card debt, pay more than the minimum balance each month so that you can repay your balance faster.
-Don’t use your credit card unless it’s absolutely necessary, or at least make sure to only charge what you know you’ll be able to pay off within three months or less.
-If something doesn’t fit into your budget, don’t buy it. Just keep on saving until it does!