I would like to create a savings account as part of my credit repair program, but it is really hard to find money to save. What can I do?
Many of our credit repair clients express the same feeling. It can be hard to find extra money to set aside as savings. The best way to get started with savings is by getting organized. It is very difficult to find money to save without a comprehensive and detailed perspective on your own finances. This requires a budget. But don’t fear, a setting up a budget does not mean going on a financial diet. It is really about gathering information. When your budget is complete you should know with reasonable accuracy where all of your money is going.
Organizing Your Finances
Putting a detailed budget together takes a little effort, but the benefits, which go well beyond supporting your credit repair project, are enormous. Plan to spend an hour concentrating on the job. Start with a pad of paper and a pen. List every financial obligation you have, and then add all of the discretionary outlays. It is helpful to have copies of the last few months of bank statements and credit card bills to help remember, identify and quantify your expenses.
Evaluate the Outlays
Examining the final list of all of your outlays can be surprising. Many people in our credit repair program reach this point and discover that they are spending more money each month than they earn. The difference ends up accumulating on credit cards, which is a credit repair time bomb just waiting to explode. If you are having trouble finding money to save each month, this is your chance to rectify that problem. Look at each category and ask yourself if there is an opportunity to cut costs or even eliminate a category of expense altogether.
Here are some areas where other credit repair clients have found savings. Dining out; how much do you spend eating at restaurants? Many people save really significant amounts of money by eating at home more often. Impulse spending; do you regularly find yourself at the mall buying shoes or household goods that you really don’t need? There may also be opportunities to save money on some of the big items that you may not have considered like your automobile. It may be possible to refinance your automobile or even trade to another car with a smaller payment.
Your Credit Repair Will Thank You
Be creative and you will certainly find a way to redirect some of your spending into a savings account. Remember that a savings account is a possession, which like other things you spend money on can provide satisfaction. Take pride in your growing savings account. Enjoy the feeling of building wealth. And remember that unlike many of your other purchases, savings actually provides security and will insure that when unexpected expenses arise you will not fall behind on your bills. Your credit repair will thank you!