Turn Good Intentions Into Good Habits (NAPSA)—Proper preparation may mean more remuneration for you downthe road. A budget is the foundation of any solid financial plan. The key to a successful bud- credit report affects your ability to get the best deal on financing. A study by the U.S. Public Interest Research Group found that one in four credit reports contains serious get is to separate out your errors to cause consumers to be denied credit, a loan or even an required needs (rent or mortgage, utilities, insurance, food and clothing) from your discretionary apartmentor job. Get in the habit of examining your credit history once a year, particularly now that a federal law has made an annual checkfree. Get organized and paybills wants (entertainment, eating out, shopping for designer labels). Most Americans require approximately 85 percent of their net income to pay for the most basic needs such as housing, transportation, food, utilities, clothing and medical care, leaving only 15 percent for other things such as entertainment, recreation, savings andinvesting. Additional budget tips include: Pay yourself first. Many financial planners consider this the golden rule to saving. Immediately set aside a specific amount to be transferred to your savings accounts each time you getpaid.If you have direct deposit, have a portion of your paycheck directly deposited into your savings account or set up an automatic transfer from your checking to savings account each paycheck. You should try to direct at least 4 to 5 percent of your income to sav- ings and investing. Track and trim your spending. Where does all that money go if not going towards yourgreatest desires? It’s often hard to say. on time. Do your part to keep your You can reach personal goals faster with a sound financial plan. Everyday expenses really do add up to more than you think. Keep a diary of everything you spend for a month, including lattes and lunches. This will help you determine where you can trim some discretionary spending. Paying with plastic can help you track expenses, since debit and credit cards give you a monthly itemized record of where you make purchases. With a Visa check card, purchases are deducted directly from your checking account, making it easier to track your daily spending. Do an annual credit report check. Everyone should know his or her credit history. If you’re planning a big purchase, such as a car or a house, the information in your credit record sterling by not going over your credit limit, making at least the minimum monthly pay- ment on your balances with each bill and paying all yourbills on time. Visa’s Automatic Bill Pay- ment service can help you paybills hassle-free with a debit or credit card. Bills are automatically paid at the scheduled time you’ve cho- sen, so you'll never worry about due dates or missed payments. Save up and reward yourself. The surest way to derail yourself from reaching your goals is to deprive yourself. Be sure to treat yourself. For example, plan a shopping spree by setting aside $250 on a prepaid card reserved specifically for that purpose. When you go shopping, you won't overspend. For more tips on developing a budget and tools for tracking expenses, visit www.practical moneyskills.com.
