Here are the notes I took from the show today:
Tell the truth. Take an honest look at your financial situation and discuss it openly with your spouse or life partner. How much do you owe? How much do you have in your savings account?
Pay off credit card debt BEFORE creating a savings account. List your credit card accounts in order of interest rate. Pay extra on the account with the highest rate first, while paying minimum payments on the rest. After the highest rate card is paid off, get to work on the next highest. And so on until you no longer have credit card debt.
Improve your FICO score. The higher the number the better (850 is the highest). In today’s economic climate, under 700 is considered low. Did you know that potential landlords and employers also use your FICO score to determine how responsible you are? Yep, so do insurance agencies. Those with a high FICO number score big when it comes to loan rates, jobs and insurance premiums.
Ways to improve your FICO score:
1) Pay more than the minimum payment on each credit card.
2) Pay on time. (This constitutes 35% of your score.)
3) Never go over your credit limit. If you do, they raise your interest rates.
4) Don’t close your credit card accounts. This hurts your score. Why? Because 30% of your FICO score consists of your debt to credit ratio.
Separate WANTS from NEEDS. If you have debt or no savings, ELIMINATE THE WANTS!
Save 8 months of expenses in an emergency savings account. Decide how much you can save each month and add 20% as a stretch goal. Search for the highest savings account interest rates from FIDC-insured banks.
1) Don’t panic when the market goes down.
2) Keep investing in your 401k or IRA.
3) Money you need in the next 5 years DOESN’T BELONG IN THE STOCK MARKET. If you need your money in 5 years or less, take it out of the stock market.
Suze’s pledge idea:
1) Don’t spend money for 1 day.
2) Don’t use your credit card for 1 week.
3) Don’t eat out at at restaurant for 1 month.
(The first two pledges are easy ones for me, but not the third!)