thebahamasweekly.com - BONA5D BITS to "Fueling Your Finance Fire" Let's Talk About Financial Literacy

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BONA5D BITS to "Fueling Your Finance Fire" Let's Talk About Financial Literacy
By Pamala McCoy
Jun 2, 2019 - 7:38:31 PM

Finances can be a taboo topic for some, but it is a necessity for all. As I often say, “when you pull back the layers of any life circumstance, you will typically find a $ sign at the bottom”. Just as the bottom in the context of a house represents the foundation, in personal finance, fundamental financial knowledge is the foundation. In both cases, if the foundation is not solid, what is built upon it will not be sustainable.

So, though the BONA5D BITS I will share are not all encompassing or as comprehensive as would be covered in a BONA5DCC seminar, I want to share ‘five’ BONA5D BITS that will be a value add to your beginning the process to “FUEL YOUR FINANCIAL FIRE™”.

BB1: Credit bureau review ... Each calendar year you are entitled to a FREE credit bureau report from each of the three (3) major credit reporting agencies which are Equifax, Experian, Trans Union. Be aware that your FREE report does ‘not’ include your score; however, your score can be purchased for a nominal fee, ~ $7.95. For your purposes, you only need to know your score to be aware of how you rate. Your FREE report can be obtained by visiting www.annualcreditreport.com

BB2: Create a Spending Plan ... ‘Everyone’ should have a Spending Plan (also known as a budget). If you do not currently have one, TODAY is the day; do not delay. There are several methods that can be used manual (pencil and paper), Excel spreadsheet, or use one of many apps that are available. There is no right or wrong method. The chosen method should be what works best for you.

BB3: Curb ‘all’ unnecessary spending ... Once you have created your Spending Plan properly, this BIT is implemented by default in that the unnecessary spending items should not be included in the Spending Plan. Thus, as you stick with the Spending Plan you will see the changes in your behavior of random spending. The monies that were previously spent unnecessarily can now be designated to strategic spending which should include investing.

BB4: Communicate with creditors ... Should you have what I refer to as ‘opportunities’ with your creditors, avoidance is not the correct approach. As in other relationships, communication is the key. That said, you should keep the lines of communication open with your creditors. If you have questions or arrangements are needed, reach out to them. Lack of communication will not eliminate the issue, but rather in most cases it will make it worse. Keep in mind; creditors don’t want to take a loss any more than you want to intentionally adversely impact your credit. Give them a call.

BB5: Construct a list of financial goals ... Statistics show that writing things down make them more real. As with other areas of your life, if you do not striving towards something, you will find yourself floundering. I want to challenge you to take the time to set some financial goals for yourself/family... immediate (next 30 days), short-term (next 6 months), and long-term (next 1 year plus). Once you have your goals set, I want you to view it FREQUENTLY and review it for changes regularly. Keep your visual ever present (some place where you will see it daily .. the mirror in your bathroom, the dashboard of your car, in your wallet/purse, or in this age of technology, you can even put it on your phone).

Remember, knowledge is not power; but rather, ‘APPLIED’ knowledge is power. I challenge you to begin implementing these five BONA5D BITS ‘today’. Do Not Procrastinate!

As always, if you have additional questions on the five BONA5D BITS or anything related to your personal finances/personal money management/credit/etc. BONA5D Credit Consultants, LLC is here to serve. Contact us today via www.BONA5DCC.com.