Personal Finance - Budget 101 / Free Credit History

I often get a number of questions related to everyday finances and how a reader can improve their financial health.  First thing first, is to take care of the basic key elements.  The second thing is to is to do it as cheaply as possibly.  And yes, don't let anyone fool you...you can Do It Yourself (DIY)!  There are a number of personal finance lessons that I have written about in the past and I will attempt to go back and re-tag all those posts to include the labels "PERSONAL FINANCE".  I will create a link for easy access to these tips but remember you can search the site to find notes and tips to assist you get financially healthier.

1) Going On a Healthy Diet - Budget, Budget, Budget

I am personally a spreadsheet man myself.  I create a very basic Excel spreadsheet that I use to track all my budget needs. So search the Internet and you can find many tools to assist you with Budgeting 101.  The key elements don't change often, so follow these tips:

• Categorize every expense by type and don't use MISCELLANEOUS (Examples: Utilities, Food, Entertainment, Auto)
• Don't you cash unless remember to 'categorize' every penny...exactly "Don't Use Cash"
• At the end of a Month, your goal should be to have more "Income" than "Expenses"
• Don't be afraid to make hard cuts (sacrifice now for a better future, every penny counts)
• Pay down debts quickly, and FOCUS on high interest rates first (Credit Cards, School Loans, Personal Loans)
• Once you pay off debts, try to pay off any new debts 'Each Month'. I know every month
• Yes its okay to have FUN, but budget and categorize it
• Use the extra money from your budget to "Invest In Yourself". The goal is to create a rainy day account

I use spreadsheets and some people use envelopes, but the important thing to remember is to find a system that works for you and to stick to it. Just like working out.

2) Get on The Scale - Check Your Credit For Free

Unless you can pay for everything with cash, then you need to be honest with yourself and "Weigh In" from time to time.  Financially, weighing your self on the scale is "Checking Your Credit History".  This is the one time when you want your numbers to go UP! A higher credit number is much better than a low score.  Now don't get crazy, check your credit annually...no more, no less.  Look for errors and make sure you pay your bills on time.  There are 3 scales that you will need to weigh in with, and they are the 3 major credit bureaus: Experian, TransUnion, and Equifax.

DIY Tip: Don't listen to commercials or some salesperson over the phone, check your report FOR FREE.  Yes, the government passed a rule years ago allowing you and I to have a FREE view of our credit history, once a year...and it can all be done through one website!  If anyone else claims to offer this service, ask them if you will ever be charged...and don't forget to tell them that you are recording the conversation. That should do the trick :)    Here is the link:

AnnualCreditReport