We are told over and over again how important it is to have a “good” credit score. But what is a credit score? As defined, it is a number that tells lenders your ability to repay a loan. In other words, your credit score measures your debts, how well you pay back your debts, how much debt you have and how long you’ve had debt. Your credit score does not… Read More »Why this score is important (and I’m not talking about your credit score)
Frequently Asked Questions
Financial Coaching is an investment in you. It is an investment in your future and your family. You’ll receive a customized plan to get out of debt and live within your means. You’ll have a coach who holds you accountable and helps you stay on track.
Both spouses must commit to and attend all coaching sessions. Explain to your spouse why getting your finances in order is important to you. Share the reasons why you think your family could benefit from hiring a Financial Coach. We will work with you both so you are both on the same page and develop a plan together that suits your family’s needs.
No! It is never too late to start. The saying “you can’t teach an old dog new tricks” isn’t true. If you are committed to making a change in your life, and you seek out the tools and guidance to do so, then you will be successful!
Having debt and living above your means may seem normal, but is it how you want to live your life? Living a debt free lifestyle puts you in control. Lenders and credit card companies are no longer telling you how and when to spend your money. Saving for emergencies, retirement and your children’s college savings puts you in control, and gives you the stability your family needs to live with financial freedom.
Companies are in business to make money. So how are they making money on 0% loans? There are two ways: 1) It is built into the cost of the item…meaning the item costs more to buy at a 0% interest rate. 2) Most people do not pay off the loan within the terms of the interest free financing. This means the consumer is required to pay interest on the loan and in most cases the interest goes back to the inception of the loan. So the 0% interest loan that you thought was such a good deal, can turn out to be a costly mistake.
Compound interest. If you are aggressive in paying off your loans, you’ll have more disposable income to spend how you want. Compound interest also makes your loans continue to grow even as you are paying them off. Consider this…If you invest $200 a month from age 21 – 30, which is equal to a total investment of $21,600, at age 67, you will have $2,547,150. If you wait until age 30 to start investing that same $200 a month, however, you continue to invest it each month until age 67, you will have $1,483,033. Not only do you have less money in retirement, your total investment was higher at $91,200.