THE POWER OF YOUR FINANCIAL FREEDOM

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THE POWER OF YOUR

FINANCIAL FREEDOM

FINANCIAL FREEDOM

Get Your Priorities in OrderNeeds vs. wants - we’ve all heard this a million times. Do you need surround sound or do you want surround sound? I don’t know about you, but some movies are just way better with high-def audio. Even so, unless you’re in the theater business, sound that puts you right into Gotham City probably isn’t do or die. As far as do or die is considered, food, water (not the bottled kind unless you’re going to Mexico), shelter, and clothing are fi rst priority. Once you have the minimums covered (Prada is not a basic necessity), then the fi nancial confl icts begin.

I say confl ict on purpose because it really can be a struggle deciding what expenses get cut. A new ipod or a new cell phone would be nice, but in the world of economists, resources are scarce. Decisions, decisions...

We have many decisions to make when deciding where our limited money reserve will be spent. So how do you sort through this mess? It’s best to focus on your three major priorities (or one big one, like your tuition).

Many people meander through their day with-out considering what comes fi rst when doling out cash. The consequences can be harsh: ‘Oh man, looks like I can’t afford the rent this month because I bought 5 Xbox 360 games last week. Don’t laugh, it happens. Actually, you can chuckle under your breath because a little planning would have saved the day (or the month in this case).

Tips to Get Out of Debt

1. Pay more than the minimum on your credit card

2. Make a budget and actually stick to it

3. Go ‘old school’ and bring your lunch

4. Get a part-time job or increase your hours

5. Leave your credit cards at home and use your debit card when possible

FAST FACTCredit scores can range from 300 to 850, and most people score in the 600s and 700s.

Generally, the higher your score, the lower your interest rates will be.

Get Your Free Credit Reports

There are three major credit bureaus and each compiles their own credit reports, so check your report from each of them to ensure against inaccuracies and fraud.

By federal law, they are each required to provide you with one free copy of your credit report per year upon request.

Equifaxwww.equifax.com

Experianwww.experian.com

TransUnionwww.transunion.com

How Do They Calculate My Score?A credit score is a complex mathematical model that evaluates many types of information in a credit fi le to determine your fi nancial reliability or credit risk. Don’t worry though it’s not as bad as Calculus.

Here is the breakdown of how it’s computed:

is your Payment History, including how you pay, bankruptcies or judgements, and how overdue your payments are

is the Amounts Owed, including the total amount you owe on accounts individually and totaled together, the number of accounts with balances, and proportion of your credit line used

is the Length of Credit History, including how long your accounts have been open and active

is your New Credit, including the number of and time since recently opened accounts, and number of and time since recent credit inquires

is the Types of Credit Used, including the number of various types of accounts

Your credit score changes over time to accurately refl ect your current fi nancial behavior and length of credit history. Since your credit score is a “snapshot”, it’s unlikely that your credit score last semester is the same this semester.

In order to ensure that credit reports are fair for everyone, certain factors are not included in your score. To name just a few: race, religion, national origin, sex, age, salary, and any other information not proven to be predictive of future credit performance are never included.

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Your credit score changes over time to accurately refl ect your current fi nancial behavior and length of credit history. Since your credit score is a “snapshot”, it’s unlikely that your credit score last semester is the same this semester.

In order to ensure that credit reports are fair for everyone, certain factors are not included in your score. To name just a few: race, religion, national origin, sex, age, salary, and any other information not proven to be predictive of future to be predictive of future to be predictive of future to be predictive of future to be predictive of future to be predictive of future to be predictive of future credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are credit performance are never included. never included. never included. never included. never included. never included. never included. never included. never included. never included. never included. never included. never included. never included.