Financial Fitness

Financial fitness courses can teach you money management skills that can help put you on the path to decreasing debt and increasing resources. Financial literacy can also help you become more aware of common financial pitfalls – including loan modification scams and predatory lending schemes – and how to avoid them.

Financial Fitness Tips include:

  • Create a budget. Examine your most recent bank statement. Create a budget spreadsheet armed with information about your wage(s) and how much you spend each month. Categorize your spending. Expense categories can include: Rent or Mortgage, Gas, Groceries, Utilities, Insurance, Car Payment, Credit Card Payment, and more. After you see how much you are making, how much you are spending and where your money is going, you will be better able to create a budget that works for you.
  • Cut expenses. Daily expenses like going out for lunch or dinner and frequent trips to the coffee shop add up. After creating a budget and examining your spending over the last month, you will likely see expenses that can be cut, which may add up to monthly savings in your bank account. Instead of buying a daily cup of coffee, make a cup at home. Bring your lunch instead of buying it every day. And, cook dinner at home with your family or friends instead of meeting up a few times a week. The combination of making coffee at home and a bringing a bag lunch a couple of days a week has the potential to save more than $50 each month.
  • Tackle debt. Once you cut unnecessary expenses, you may find a little extra money that can be used to tackle any debt you may have. To be truly financially fit, work on paying down and eventually eliminating your debt by paying more than the monthly minimum payment. Paying the minimum each month could take more than a dozen years to pay off the debt. By paying even a little more than the minimum each month, you are working your way toward financial fitness.
  • Build an emergency fund. With each paycheck, make an effort to contribute to a savings account separate from your checking account. Each contribution, no matter the amount, builds a cushion for emergencies down the road.
  • Enroll in a financial fitness course at NeighborWorks Columbus. Financial fitness courses can teach you money management skills that can help put you on the path to decreasing debt and increasing resources. Financial literacy can also help you become more aware of common financial pitfalls – including loan modification scams and predatory lending schemes.


Credit Rebuilding


The first and most important thing to remember is to not to get back in a situation where you end up over your head in debt.  Bad things happen to good people. People lose jobs unexpectedly; people have health problems, people get divorced, etc. Let us say it again, sometimes bad things happen to good people.

The second thing is to pay all bills on time. Even though your utility companies or cell phone companies don’t show up on your credit report, they will likely show up on your credit report if they go into default.

You will need to demonstrate to future creditors that have learned your lesson and you can be responsible. One way to build or rebuild your credit is to apply for a secured credit card. Secured credit cards work like regular credit cards except that your credit line is usually secured by a savings account that you maintain with the bank. Many of these cards don’t have a monthly and/or annual fee.

Building your credit score up will not happen overnight but with patience, time and responsible behavior, your credit score will improve. NeighborWorks® Columbus can help take the steps necessary to a better financial future.