Financial Series 2- On the Path to Prosperity
By Afua Serwah Osei-Bonsu
Improving ones credit score can be done with thorough diligence. It’s important to make sure closed accounts actually get formally closed to make sure things get updated properly. There is a big difference between an open account and a closed account-the closed account does not go up, it goes down only. Closed accounts start to look old and come off of credit reports. Open accounts sometimes linger to long on your report.
Absolutely close all accounts giving negative reportage in your credit reports. Some credit accounts, in fact most, create negative credit scores frequently. Were one to investigate perhaps the majority if not all of their clients arrive to a negative credit status. Credit is fundamentally negative. One person is living below zero while another profiteer lives
above zero off them. Even certain cultures and religions promoted credit card companies in their scriptures and beware of this type of ensnarement. If you want good credit, carefully chose what it can be. I would avoid all credit card scams and instead whenever possible chart paths for building up wealth and borrow only things such as mortgages or student loans and avoid credit cards all together. If you avoid credit cards you will likely build your financial life above zero and never give a creditor the opportunity to damage you in the public eye. Good credit is probably no credit cards.
Its also possible to critically analyze employment and staffing agencies in your region to have back up plans for work after assuming a mortgage or a student loan. There are also new high yield disability savings accounts offered by the government that help to offset the blow of a sickness or health crises.
If you have a debt of for example $800 on a credit card, tell the creditor you would like to have $200 payments on such and such a day for 4 months. Close the account before you even pay it off and force it down. The key is think small of the debt and spread it out in large enough payments that it goes away. Satisfying debts is a mentality.
Another rule for credit reports is when you check it, they check it. Don’t abandon your credit report or forget about it, check it frequently and challenge things that should be removed. Work to clear all negative items. Things like late payments are starting in more recent reports to carry more penalties. It’s recommended to always go over your report with a lawyer as credit reporting has been plagued by racism and frequent inaccuracy. Take time in the New Year to hire a firm like Lexington Law to go over every detail of all three of your credit reports every year.
One key thing to remember when attempting to rid of debt is to add up all your key numbers in terms of interest and late payment fees and to never pay the minimum payment that often does not exceed these fees and forms the “con.” It’s possible to pay and endlessly pay on a credit loan, if you pay the minimum and to never address the principal. Make certain to divide the debt up or break it into manageable pieces and pay it off, not constantly-but to pay the principal off.
Now a’ days we are living more and more in microcosms and what you choose, decisions you make follow you when online. These microcosms follow you and become your profile and even dictate which catalogs are sent to your home etc.-you tap into tribes and networks. The everyday choices you make matter. Even the tapping into tribes and networks impacts ones prosperity.
A letter from a lawyer can inspire a creditor to be accurate in their reportage and to remove old things with urgency.
Beware of who reports negatively about you to the credit agencies as those are accounts to close immediately. These are relationships that may choose to quickly damage your credit rating and should be avoided in the future. Never reinstate an entity that has reported severely in your credit report.
Once all the negative accounts are dealt with a plan for wealth building can be started. What’s really great are the 529 Education accounts for each of your children, life insurance, family trusts, 401K’s, outside IRA to roll into, pensions, military service and benefits, Dividend Stocks, and all kinds of diverse savings accounts.
The ways up in life are diverse. One easy way to save up a million is in a 401K. Just sign up for a 401K in every job and keep building them up with matching funds as high as you can get it. You can let multiple 401K’s roll into an IRA with financial firms such as Hantz. You can use your 401K to race with your mortgage and pay off your mortgage or student loan with it later on. It’s possible to save up to $250,000 in an education fund.
Renovating real-estate or property valuation can be a great way to increase ones net worth via a simple appraisal. Try adding high lux features like heated floors, or heated drive way or a pool, or tennis court or fire pit from an architect’s a la carte list.
Focusing on value, service and care often brings wealth by aligning with human necessities.
The more you serve your population and meet their needs, the greater the long term profit. One can become a pioneer or community builder or agent of change. Think about making diplomatic invitations and sometimes even inhospitable to racism or prejudice which can increase prosperity and value in a community.
It may be wise to even ensure prosperity moves into future generations and stock up on life insurance and 529 trusts for children.
When my mother died she left me a cook book. At the first sign of children, plan for their trusts and education, even when they are just a thought.
Everyone also needs to retain a general practice attorney and schedule time for careful estate planning.
The first big investment to make and perhaps the most profitable is ones training, skills and education.
How to pay for all those degrees can be challenging. There are fellowships and military benefits, by filling out the FAFSA at www.fafsa.ed.gov, one can usually see if they are due any financial aid to get a degree. Sometimes it’s necessary to plan to use matching funds in a savings program like the IDA which is accessed through MSHDA homebuyer classes in Michigan, or an employment sponsorship or co op, Pell Grant, Stafford Loan, departmental scholarships, and pay cash in installments from your wages. Websites like www.afford.com may help a student to pay in installments with tuition management systems. What you major in dictates often how much you can take out in loans and receive in scholarships. One school may offer $300 in loans another may offer $15,000. It depends on the prospects or assumed potential of your chosen degree.
The challenge is really how to get several degrees because knowledge doesn’t come on a platter and very often people need alot of education. Education automatically opens up many opportunities. Education is one part of the key to the way up. What’s really stellar is to enlarge your vision of wealth to include your education and pursue scholarship and mastership. You can publish as you go.
I am sure you heard about those people who made money quarterly (the writers) or the ones who were making money every minute (the manufacturers) ? Or that other one who made money in his sleep (the ecommerce pioneers). Forbes Magazine used to have the billionaire profiles which were an interesting yardstick to see who was doing well on Earth and how they did it. You might think about how you can serve your community and build your career around it or how to design your life interesting and prosperous with a variety twists and turns.