Olympic athletes are known for their devotion and dedication to reaching the top of their sport. They have rituals and habits that define who they are. They also have a support system – coaches, trainers, and family.
How can you take those same principles and apply them to your financial success?
Use your existing technology
Technology is all around us. It is your choice to use it or not.
Be a success like our Olympians and use of technology that is right on your smartphone to develop good financial habits.
Credit Card Delinquency – According to the Federal Reserve Board of Governors Credit Card delinquency rate is 2.49% as of September 30, 2018, When you miss a payment, you get charged a fee ($29 – $35) and your credit card interest rate goes up possibly all the way to 29.9%.
Eliminate this by automating your credit cards. Take the time to set up automatic payments that pay the minimum amount. No more having to remember about making the payment. Another good idea is to memorize the due date of your cards.
Get online statements. Have your credit card company send you text and email reminders about when your statement is available, and your payment is due. If your credit card company does not do that, then check out The Points Guy and get a new card that does.
You would expect that having your banking account information on your mobile phone would prevent the bounced check/overdraft. Obviously, this is not happening as the most connected generation, The Millennials is 40% more likely to overdraw their checking accounts if they use mobile payments, according to a new financial literacy report from the TIAA Institute.
How do you avoid the lack of cash and the bounced check/overdraft?
This combines developing good habits and using the notifications available to you on your checking account. Go online and manage your alerts. Most have alerts for balance, deposits, overdrafts and more.
These easy to accomplish habits will assist you in protecting and improving your credit score. You may soon earn a higher credit score if you balance your checkbook responsibly.
FICO, the developer of the most widely used credit score, is rolling out a new score next year that considers how you manage your checking, savings, and money market accounts in addition to how you pay back your credit cards and loans.
Always Keep Score
In Measure What Matters by John Doer, you learn about how companies find success by keeping track of the important numbers around their business.
Your credit score is the most important financial number you have. Keep track of your score.
Most banks and credit cards now provide online access to your score. Each of the credit companies do as well.
Know your number.
No matter which place you use to keep track of your number you need to set up alerts about changes to your credit score. Being informed about changes both good and bad to your credit score is required information.
Need some guidance on how to manage your credit score?
Michael Tannery CPA, CDFA® AIF®
Tannery & Company
Tax – Accounting – Wealth Management
Be A Financial Olympian™