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  • #1

    Need any adivce

    Hello. I am new and am really trying hard to get control of my finances. I am recently seperated from someone who was financially irresponsible and since my seperation I realized how much I enjoy gaining knowledge and how much I enjoy getting ahead. I have paid off (5) credit cards and 2 accounts in a year. I have 3 credit cards to go, over all about $1,500. I am working hard on reestablishing my credit and I am in the 600's on my scores. I have no experience with money market or any kind of saving plan. Any advice is greatly appreciated. I would like to start saving to get a nice nest egg going. I have already cut back a great deal on spending, you would be suprised on what you can live on when you have to. Thanks for your help!
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  • #2
    Re: Need any adivce

    Hi deanna. Have you separated your credit lines from this other person? The last thing you want to do is pay off a lot of debt and have him (her?) rack it up again.

    Next thing is make sure you have an emergency fund built up. Ideally up to 6 months worth of expenses, but anything you can spare is good. There are several Internet banks that pay much better interest than most traditional banks and are just as safe. Read the threads about GMAC bank, HSBC, ING, Emigrant Direct, Amboy and others.

    Then I would be thinking about your retirement. Are you contributing to a plan at work? Or you may want to look into a Roth IRA. Again, lots of threads about this stuff as well.

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    • #3
      Re: Need any adivce

      Sounds to me like you are doing really well. The best investment you could probably make is getting the credit cards paid off. The only thing that will really improve credit scores is paying everything on time and waiting and it sounds like you are doing that.

      If you want to be really conservative (use no debt at all ala Dave Ramsey) then you may want to save up a small emergency fund ($1000) to get you over the bumps without having to use the Credit Card.

      I have found using cash envelopes for face to face expenses like food, clothes, gifts etc. helped me avoid overspending you might try that for any area where you would like to cut back.

      I also separated a few years back and it took me a little while to get everything under control but it has been 2 years now and I will be debt free in November and I have a little house I am renovating.

      Good Luck, keep on learning.

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      • #4
        Re: Need any adivce

        Thanks for your quick response. Yes, I have separated or credit debts. That was top priority. I want to learn more about Dave Ramsey's program, sound interesting. I am doing my best to set up an emergency fund. I want to learn more about money market. Do you need a certain amount to get started?

        Oh, to keep myself in line, I budget my paycheck a month in advance and try my best to stick with it. I pay on my credit cards twice a month. (once per pay period) I could do it monthly, but I don't like the idea of keeping the money because I would probably spend it. I pay on my credit cards the day I get paid so I have no other choice but to pay them off. If I allow them to be paid last, I will pay less than I originally wanted because I will find something else to spend the money on. This method has really kept me in check. This sounds crazy, but food is on the bottom of my priorities. I can eat dirt cheap if I have to. I bring my lunch to work. Ramen noodles,tuna, left overs, etc.

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        • #5
          Re: Need any adivce

          Congrats on your hard work so far!

          All I can say is continue cutting back. I make about $1400 net a month and I thought my budget was strecthed as far as it could be...Ive managed to shave $75 more off in two weeks. Amazing what the site can inspire people to do!

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          • #6
            Re: Need any adivce

            Thanks. Starting next month I am going to see just how many pennys I can pinch. I have been doing okay thus far but I am going to stretch it even further.

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            • #7
              Re: Need any adivce

              Congratulations, it sounds like you are doing great to get your financial life in order. Feels good, doesn't it? There's something about a ZERO balance on a credit card that is so gratifying.

              Making payments on your credit cards twice in a billing cycle (rather than only once per month on the due date) may help you in the long run -- you lower your average daily balance which in turn should reduce your finance charges.

              vsjhoc

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              • #8
                Re: Need any adivce

                Yes it does feel good. I keep a planner with a monthly goal for each month,(usually it is to pay off 1 cc) when I make the goal I write it down along with a rewarding message for myself. A bit goofy, but it works for me and is nice to look back at my progress.

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                • #9
                  Re: Need any adivce

                  If you haven't yet read it try reading the Complete Tightwad Gazette. Tons of great insight on ways to cut back on every day things.

                  Best of luck to you, breaking ties and being left holding the bag sucks.

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