Beating Broke

Personal Finance from the Broke Perspective

Your Credit Score Is Your Responsibility, Here’s How to Take Care of It

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Your credit score is somewhat of a black box. It is difficult to know exactly how it is calculated, when it is calculated, who sees it, and what decisions they make as a result of it. No one consults you about your credit score. They don’t ask your opinion. They do nothing to seek clarifications. It is extremely one sided and you have no part in the process. That is about as unfair as it gets.

With so little input on the matter, it stands to reason that you have nothing to do with your credit score. But that isn’t true at all. You are ultimately the only person responsible for your credit score. You are the only one to fix it when it is broken. If it is telling a story about you that is misleading and defamatory, you are the one who has to do something about it. No one else is going to unilaterally intervene on your behalf if things are misreported. If you tried to sue a reporting agency for defamation, you would probably lose. Even so, it is still your responsibility. Here are a few things you can do to protect it:

Get the Right Loan at the Right Time for the Right Reasons

Which is worse? Is it getting a temporary loan to keep the lights on, or skipping out on all your creditors? To be clear, it is better to take out a loan to get you through the lean times. Look for one of those good credit union loans to help get you back on your feet. Bills don’t have to go into collection before they start weighing negatively against your credit. Late and slow payments will also leave a mark.

Everything about your financial situation gets worse as your credit score plummets. If your credit score drops too low, you will not be able to get a loan at all. Any loan you manage to get will be a bad one that will cause more problems than it solves. When your credit has suffered injury, you need to take proactive measures to stop the bleeding. One of those measures is to get the money to, quite literally, keep the lights on. You are going to borrow that money from someone, make sure it is a good source that helps you solve your financial woes rather than contribute to them.

Get Control of Your Spending

One of the sure-fire ways to go broke is to buy things you really can’t afford. This is a calculus that most people are pretty bad at making. How much house can you really afford? Can you make the monthly payment five years from now? What if you are laid off? Just how much house can you really afford?

In some ways, all purchases are emotional purchases. You can survive that with small items in moderation. But as the price tag goes up, the emotional temperature has to come down. It is a short step from wise purchase to foolishly setting your money on fire. You credit score suffers every time you misjudge the distance between the two.

Fight Back When They Get It Wrong

You are not totally helpless with regard to your credit score. You can fight back. Before you start fighting, be sure they actually have the wrong information. Keep an eye on your credit report. There are many services that will show you your report for free. You would be surprised at how many times the information is inaccurate. You can usually dispute those details for free right from your service of choice.

Come Clean with Your Creditors

Even if you really are drowning in debt, you can still throw yourself at the mercy of your creditors. They actually want to make a deal with you. The calculus is simple: They can get something if they make a deal or get nothing if they don’t. You can also make a payment arrangement that is surprisingly agreeable. Just address it head on and it will go better than if you ignore the problem. Ignored problems always get worse.

Your credit score is mostly a black box that cannot be deciphered. Once it starts going in the wrong direction, it is easy to feel helpless and defeated. Fight that feeling by getting a timely loan to stop the bleeding. Get control of your spending. Fight back when they get it wrong. And call your creditors before they start calling you.

6 Tips for Saving Money as a Homeowner

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If you’re falling behind on maintaining your home, chances are you’re setting yourself up to lose money in the long run. Fortunately, you can find easier ways to stay on top of maintenance and repairs. Doing so ensures you protect your most significant investment without going broke in the process.

Consider these useful tips for saving money as a homeowner:

Be More Energy Efficient

Purchasing energy-efficient appliances is a smart way to save money in the long run and contribute to environmental wellness. You can reduce your emissions and lower your energy bills. You can also make your life easier because using energy-efficient appliances often requires less maintenance and replacement. Look for the ENERGY STAR label to find refrigerators, washers, dryers, light bulbs, and more. You could also have a water softener system installed since doing so extends the life of other appliances. Other ideas to be more energy efficient include utilizing solar power, installing low-flow showerheads, starting a compost pile, limiting space heater use, and unplugging unused chargers. Additionally, use cold water in your washer, and dry your clothes outdoors.

Make All-Natural Cleaners

Making your own simple, all-natural cleaners is safer for your family and pets and the planet. Homemade cleaners aren’t tested on animals, so you can feel better knowing you’re protecting your circulatory system. Furthermore, you can save money by using inexpensive ingredients such as vinegar, baking soda, essential oils, hydrogen peroxide, liquid Castile soap, etc. You can easily create an all-purpose cleaner with no negative impact on the environment. Do the research beforehand to make sure you’re mixing ingredients safely.

Improve Your Laundry Habits

You can save money and reduce energy usage in the laundry room by washing with cold or warm water instead of hot. Further, by opting to dry your clothes outdoors, you can avoid using the dryer. No matter what size load you put in the washer, you’ll still be using about the same amount of energy, so you might as well fill it up to save energy. In addition to this, try using dryer balls, turning on your dryer’s cool-down cycle if you can, and lowering your dryer’s heat settings.

Insulation is Key

Insulating your home can help you save money on heating bills and keep your house cooler in warmer months. You can apply weather stripping or caulk to doors and windows, seal HVAC ducts, insulate the pipes and water heater and fill larger gaps with expanding foam filler. Doing these projects on your own can be easy. You can search for simple online tutorials if necessary.

Start an Emergency Fund

When emergencies arise unexpectedly, and you lack the funds you need to pay for these, you’ll likely wish you saved money sooner. You can start an emergency fund right now to avoid worries and regrets. Doing so gives you extra security for household repairs or any other issues that can and will happen.

Be Prepared for the Future

You can get smarter by being prepared. For example, you can be prepared by preventing future problems from growing. As issues develop, you’ll need more cash. You can prevent problems from getting worse by regularly examining your home. When you notice something minor, be sure to fix the problem right away.

By planning, you can avoid future problems that could negatively affect you and your family. With this in mind, always remember the benefits of saving money for emergencies. Besides this, doing the right thing by being more energy-efficient helps conserve the environment and make you feel like a better person.

How To Do More With Less

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For many people, managing money and running a business is stressful. Does it feel like that to you?

Once we are living on our own we might dream of having a life without limits or bounds. But it doesn’t really work like that. In actual fact, we have to manage more aspects of our life—and make it work. Not just a little bit. But fully, all the way, all year long.

If you’ve been dreaming of starting your own business, it’s a smart idea. Basically, by working for yourself, you can have the most freedom to express your unique ideas. You won’t be tied down by a boss, a corporate structure, or a bunch of stuffy policy rules.

You’ll have freedom to work like you want, when you want, on what you want.

At least, that’s the marketing pitch.

The reality can be a little, or a lot different.

Whether you’re starting out as an entrepreneur, or have been at it for some time, here is the nitty-gritty truth.

You’ll Work More

It’s usually not the 4-hour workweek, as popular author, Tim Ferris suggests. It’s usually more like 60 or 80 hours a week.

It isn’t always pretty. It isn’t always fun. You might like to be playing with your mates. You might want to be heading to the beach for a sunny day.

But, more often than not, you’ll have projects to do, people to contact, and dreams to realize. When you recognize this fact, you can find a certain sense of calmness. You have a sense of purpose and meaning.

You’ll Be Alone

Your friends and family won’t know the ins-and-outs of your business. They won’t truly know what you’re struggling with—or what is driving you. In essence, you will be alone.

Sure, your close friends and good mates will come by to see your progress, share a cup of tea, and get a sense of what you’re up to. But, will they get it? If you’re fortunate, one or two will understand.

You’ll Need Support

No one can really build a business on their own. Not entirely. You’ll want to get help, reassurance, and encouragement. You’ll want to get support from people who have the experience and skills that you don’t have yet.

This is why it’s so helpful to talk with a counselor or coach. Check out the services in your community, city, and state. Perhaps there is a business mentorship program or council in your area.

SCORE is a volunteer organization made up of executives who have been-there-and-done that. They have the miles of experience to share with you. When you talk with a SCORE mentor, you’ll feel a sense of relief. Finally, someone understands what you’re talking about and why you’re so excited.

You’ll Do Nitty-Gritty Calculations

Once you realize the fact that being in business is a combination of art and science, you’ll dive into the numbers. You’ll look at what you’re spending in fixed costs like rent, electricity, water, and Internet.

You’ll look at what you’re spending on variable costs such as shipping, marketing, and advertising. According to recent statistics, 9 out of 10 shippers overspend. This is contributing to your fixed costs, overhead, and business expenses. You could save as much as 30% with parcel contract negotiation.

You’ll Keep On Learning

No one said that going into business would be easy. No one promised you that you wouldn’t need to learn a thing. If someone did give you those promises, I hate to break it to you. They lied. At the very least, they embellished.

Every successful entrepreneur is a passionate learner. It just goes with the territory. When you want to achieve your dreams, you get really good at recognizing your weaknesses.

Sounds funny, right? Not really. When you identify your weaknesses, you can do something about them. You can learn new skills. You can take some online training classes. You can work with a coach or mentor.

Sum Up

By harnessing your sense of purpose, you’ll have a compass for staying on course. You will be more comfortable getting help from experienced professionals, investigating finances, and staying on a swift path of learning. With these skills, you’re on a path for success and doing more—with less.