Welcome to part two of Financial Literacy – 4 Simple Tips to More Money! Did you miss part one? You can click the thumbnail at the bottom to watch the fully produced VIDEO version of this blog, or see it on my video blog site www.kyledavisfinancial.com where you can see this video as well as all of the others in my financial education series.
Mistake #3 Bad Credit
So… I’m sure we’ve all encountered credit situations. Buying cars, getting a mortgage, heck even renting an apartment these days, they want to check your credit score! What a lot of people don’t know though is that a low credit score can actually affect the price you pay for things like car purchases. Seriously! I talk about this financial literacy stuff a lot, but let’s get into some REAL numbers. If you had a $30,000 car loan over 5 years, what’s the difference between a 3% interest rate and an 8% interest rate? Over $4,100! You’re paying an extra $4153.80 for that car because your credit wasn’t as good and you had to pay a higher interest rate. How crazy is that!? Nobody wants to pay more, but we can fight this effect. Solution: Improve your credit score. It really is that easy, and it’s something YOU can do by yourself with no help. I’m not going to re-invent the wheel here. There are already PLENTY of great articles out there with credit tips. Seriously, just pull up a browser window and type in “Improve my Credit Score” and start reading! Bottom line: Better Credit Score = Lower Payments = More money in YOUR pocket. While we’re on the subject of credit, let’s move on to mistake #4 and that’s…
#4 Living the Plastic Lifestyle
Carrying a balance and living off of credit cards is the ultimate mistake you can make. You end up paying more than the regular price for EVERYTHING YOU BUY. Credit card finance charges are your worst enemy at ANY age. Solution: If you’re already free of credit card debt, you are awesome! Do everything in your power to stay that way…forever. Every dollar you pay in interest is a dollar you’re giving away to the finance company. Do they need that dollar more than you? Survey says: No! If you do carry some credit card debt, here’s a great way to get rid of it. Get all of your balances together and figure out the interest rates of each credit card or charge account. Take the one with the highest interest rate and put all of the extra money you can afford toward paying that highest interest rate off first. Just pay the minimum everywhere else. If that means an extra $50/month, then great! Start there and work your way down starting at the highest interest rate and ending at the lowest. That is THE MOST efficient way of paying off credit cards, period. I get into more detail in my eBook, which you can get for free by visiting my video blog and joining my VIP List. Go get it! It’s free when you sign up!
Bottom Line: financial literacy education is worth your time, and worth its weight in gold. It can put massive amounts of dollars back into YOUR pocket over the long haul, and that’s no joke! Did you miss mistakes 1 and 2? Just click here to watch the full version on video!
If you’d like to schedule a free consultation or find out if you’re on the right track financially, click the scheduling link in the video or visit kyledavisfinancial.com and click the “Schedule Now” button in the menu! I’m available face-to-face, through video chat, or over the phone. Join me on social media and be sure to leave questions and comments! See ya soon!
Kyle A. Davis is a financial advisor and president of Integrity American Group, LLC. He is a Florida native and an advocate for financial literacy and practical money education. When not assisting clients in retirement planning, he creates educational videos on financial wellness and offers free resources on his personal finance website www.kyledavisfinancial.com!