The Easiest Financial Plan…

It seems that everywhere you go people are discussing the economy. The proof of the bad economy is everywhere, and millions of people are searching for answers. Whether the economy is doom and gloom or it is booming, one constant is the number of financial plans that people have come up with or tried to implement in order to get ahead.

Some of these plans are very complex and some still are very simple. Think about all the different types of plans or approaches you have personally heard about. They start out as; “the best way to get ahead with your finances is…” I am not saying any of these plans are bad or that they can’t work, but I will tell you why I believe so many of them end up failing.

I believe that one of the biggest reasons people end up not being successful with different plans is they associate the journey that leads to the final destination as one involving pain. Most people I see know the plan will work and try to convince themselves they can do the things they need to reach the final outcome they desire but more often than not they fall short. The pain that is associated with getting ahead for most people ends up stopping them from staying on track.

The pain I am referring to is “don’t”. Such as, don’t go out to dinner, don’t go to a movie, don’t go on vacation, don’t buy the kids new school clothes, just to name a few. Some people even go as far as not running the air conditioner at their house or wearing coats inside instead of turning up the heat. All these kind of things will save people money, which is the pivotal part of their financial plan, but so many lose interest of the goal because they get tired of the not doing the things they want to do.

We don’t like the pain of doing away with things we want to do and in the end that alone is enough for most people to just give up. Therefore the well constructed plan fails.

How about a way to get ahead that doesn’t involve pain? Personal finances can be very basic in terms of complexity. You have a few options; make more money or spend less money. Doing either of these things if you don’t increase your monthly obligations will give you flexibility to get ahead. Once you have the extra money that is where you can get into many other options and much debates as to what is the best way to use those funds. That is for you to decide.

So keeping this as simple as possible let’s assume that just going out and making more money is not an option that is viable for most people. If that option is off the table it comes down to saving money every month, but how do we do that without getting back into the cycle of pain, otherwise known as not doing what we want or sacrificing? Drum roll please…Pay less for the things that we have and have to have.

No I am not telling you to only shop at Wal-Mart that would put many people back into the pain cycle. Instead, simply pay less for most of your monthly obligations by improving your credit score! Think about it, credit scores are vital in determining your rate on Mortgages, Auto loans, credit cards, Insurance, personal loans, etc. Improve your FICO score, and pay less for things you have. It’s really pretty simple, and pain free. You then have the ability to take the monthly savings awarded to you by having a better score, and use that to get out of debt faster.

Incorporating your FICO score into your financial plan needs to be at the foundation of any variation of a plan that you want to use. This is simple. You can do it. Best of all, it is relatively pain free! The only pain involved with this plan, is you need to get credit education, or hire an expert to help you with the things you need to do to improve your FICO score.

Improving your FICO score becomes a lot simpler if you actually know what is good for your score and what is not. It is a lot easier to make good choices or decisions once you know what the outcome will be. Most people if they know doing something today will be negative for their FICO score will no longer make that same mistake once they get over the myth that they have no real control of their FICO score. Very few people understand the scoring system; therefore they try to add common sense to FICO scores. This just causes people to end up mad which yields negative results. Education is key.

The last step is getting education from an actual expert. Not just a person that thinks they know the rules or someone that you think should know the rules. There is a big difference from an actual expert vs. someone that just should know the answers because of their job. So, be very careful who you listen to when it comes to credit score advice.

There you have it. Simply put, improve your FICO score and save money. One of the easiest, most effective and pain free plans you will ever come up with.

Author: Dan Beck

Dan Beck is a credit repair expert who teaches consumers how to create an "A Rated" credit profile. Would you like to receive a FREE Consultation with Dan? If so, click here.

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