For some, asking the question of what to spend your tax return money on is a FUN question to answer. So, what are you spending your tax return money on? Maybe you are making a large purchase like a new car or furniture. Maybe you are taking an exotic vacation or maybe you will do a little personal pampering.
The question of what we do with our tax return money is personal but very top of mind for retailers. Am I right or am I RIGHT? From auto deals to furniture to appliances, it seems like everyone wants to get a share of this surplus. When I lived in California I always had my garage sells during this time of year because it was more profitable than waiting for summer.
As a Credit Coach, we are staying on the topic of dramatically boosting our credit scores. So here are a few creative suggestions with your credit top of mind. I emphasize the word “suggestion” because even though I am putting them out there as a recommendation…we are all different and have our own situations to consider; however, what you do NOW with regards to credit has lasting long term effects. That is why the drive of boosting our credit score needs to be the focus.
- Set aside an “Empowerment Fund” of at least $1,000. This money needs to go into a separate savings account. Money left in your checking account will get spent! When you have an empowerment fund, you have the means to negotiate with collectors more powerfully. What’s the point in working on your credit and with your creditors if you don’t have the money to back it up! If you would like some guidelines for negotiating with collectors, reach out to me and schedule a 15 minute FREE Credit Check call.
- Get a Secured Credit Card. A secured credit card involves you putting the money down to secure a revolving credit card that you can use to establish a good credit history, reduce your overall utilization ratio and expand your revolving credit.
The benefit of a secured credit card is that you won’t be denied! Yay! The reason for using your tax return money is that you want to establish a high limit card. Once you establish a high limit card you will get additional high limit offers. Just be sure to keep your utilization ratio low. For additional guidelines, contact me.
- Pay down your credit card balances in order to decrease your utilization rate. Remember that your utilization ratio represents 30% of your credit score and the goal is to be under 30% as anything over is hurting you not helping you.
Now, here is the hard truth… YOU determine your FUTURE! The actions you take with your tax refund checks are totally up to you. Choose wisely as you can reap the rewards for years to come or you can have immediate gratification which gives you only a short term gain.
- Take a piece of paper and draw a line down the center from top to bottom. On the left side of your paper I want you to write at the top, “My Credit Goals & What That Gives Me”. On the right side of your paper I want you to write “My Current Needs & What That Gives Me”. List at least 10 items on each side.
- From these two lists, I want you to rate each item based on importance using a scale of 0-10 with 10 being most important and 0 being least.
- Now “*” the items that excite you the most (only 3 “*” between both lists).
- Now write these 3 items on the back of your piece of paper and your money, your energy and your focus will go towards these 3 items.
If you need any assistance with this exercise, please reach out to me via email and let’s get you on the road to recovery!
I highly recommend you check out all our services in our “FES Protection Plan” membership. There is no cancellation fee. Go to www.CreditGal.CO and select “Products” and then select “Protection Plan” to view all that is available to you.
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, contact me for help.
For questions or additional resources, please contact me at Info@CreditGal.CO