Disclosure: This is a compensated campaign in collaboration with Latina Bloggers Connect and Wells Fargo.
During the holidays I tend to overspend. Besides the multiple gifts I buy, I also have to spend more on groceries and gas. Because of this, I always try to prepare in the months ahead buy cutting my budget and saving here and there so I can have the extra money needed for the holidays.
In the months prior to the holidays, I cut out all unnecessary expenses. I make a plan and a budget and start saving. I make sure to stop using my credit cards and start using cash so I can better control my spending. I learned this from my parents who always talked to us about finances and being responsible.
We had a savings account by the age of 5 at Wells Fargo. My parents would take us to the bank and really showed us the importance of being fiscally aware and responsible. They told us to save and always have money put aside for a rainy day. It was a wonderful lesson they taught us. And, to this day, those lessons have helped me in my life.
That is why I am glad that Wells Fargo has collaborated with Telemundo for the
"Conversemos de Tus Finanzas" campaign. This campaign is committed to making financial education and in-language resources available to Latino consumers. By giving Latinos those tools, it empowers the community. These essential tools will help people take control of their finances and make informed decisions on how to manage their money.
The Wells Fargo site provides customers with bilingual online tools, Spanish Text Banking, Spanish account statements, Spanish-language call centers, Spanish-speaking bankers in stores across the nation, and more. With these resources Latinos will be able to learn about money management, credit, and other important financial topics.
These tools can be used by anyone as well. Finances are something that are often ignored until something happens but it is a topic that should be discussed. Here are just some tips that might help you these holidays and all-year round:
Credit Tips
Establishing and constructing your credit is important in reaching your financial goals. Follow these tips to establish, improve and maintain your credit:
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Check your credit report annually
Make sure your credit report contains current and accurate information. Errors could negatively impact your credit score and even be a sign of possible identity theft. Request a free copy of your credit report at least once a year from AnnualCreditReport.com or call toll-free 1-877-322-8228.
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Pay your bills on time
Your payment history is one of the biggest factors in your credit score – including things that may surprise you like on-time payment of your rent and cell phone bill. Using free online tools, often available through your financial institution’s online banking, can help you develop a budget and create an automatic bill payment schedule.
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Set up alerts
Set up email and text alerts, as well as autopay, to help ensure that you pay your bills on time and build positive credit history.
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Pay more than the minimum
Paying more than what's due on your credit card helps you pay down debt faster and can improve your credit score.
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Keep debt at no more than 35 percent of your gross monthly income
Lenders look at the amount of debt a consumer has compared to their monthly income when making credit decisions.
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Contact your lenders
If you ever have trouble paying a credit account, contact the lender rather than simply not paying. Oftentimes, they can work with you.
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Think before closing accounts
Closing credit card accounts may lower your available credit and could hurt your credit score in the short term.
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Understand how strong credit impacts your bottom line.
Your credit score influences the interest rate you qualify for. The lower the interest rate, the less you’ll pay in interest over time. Many sites, including Wells Fargo, offer calculators that help consumers understand how interest rates impact their payment and the total cost of the loan.
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Establish and maintain healthy credit – even if you don’t need a loan.
Lenders aren't the only people who use credit scores to make decisions – many insurance companies, cell phone providers and landlords do, too.
Money Management Tips
Money management is also very important when it comes to reaching your financial goals. Follow these tips so that managing your money is simple and effective:
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Learn where you can put your money
Learn the types of accounts that are available and how to determine which ones you need. Here are some definitions to help you navigate your banking needs:
o Checking account
o Savings account
o Certificate of Deposit (CD)
o Money market account
o Individual Retirement Accounts (IRAs)
o Before opening an account, it's important to understand the terms and features. When you are thinking about opening an account, you should spend some time reviewing the features and requirements associated with the accounts you are considering.
o Learn how the FDIC safeguards your funds. The FDIC insures deposits and assesses the health of financial institutions across all 50 states.
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Prepare a budget
o Understanding your income sources is one of the starting points towards creating a budget.
* Your annual gross income represents your total income before any taxes or other deductions. “Take-home pay” represents your net income, specifically your income minus taxes, credits, and deductions.
o Tracking your expenses will help you spend your money more wisely. If you take the process step-by-step, it can be surprisingly easy to find out how you're spending your money. Here's how:
* Gather your financial statements.
* Create a list of monthly expenses.
* Examine your expenses.
• Fixed expenses
• Flexible expenses
• Discretionary expenses
o Saving for life's special moments. Set your sights on specific goals to effectively target your savings strategy. Look for an online budgeting tool that helps you identify and track multiple goals at once.
o Putting it all together in a budget. Create a budget in five easy steps.
* Step 1: Organize. At its core, a budget is a worksheet with two columns: one for income and one for expenses.
* Step 2: Track. For one month, keep a detailed log of all your spending habits.
* Step 3: Analyze. At the end of the month, total your income and your expenses and then subtract your expenses from your income.
* Step 4: React. After looking at all of your expenses, separate them into categories and set a budget for each.
* Step 5: Review: Make a habit of reviewing your budget every month, particularly in the early stages.
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Manage cashflow and savings
o Track your spending. Online tools can make the process of tracking your spending completely automatic. If you choose to track your spending manually, get in the habit of consistently following a few basic practices:
* Save receipts
* Use your credit card
* Update your records
* Review the results
o Pay yourself first. If you're having trouble finding ways to pay yourself first, try taking these steps to get into the habit:
* Figure out how much you can afford
* Set a personal payment goal
* Create a savings strategy
o Reduce your debt. If you find that you’re paying down your debt each month, but your balance doesn't seem to budge, you may want to take a look at your payment strategy. Here are a few tips to help you make more headway:
* Organize your debt
* Prioritize your payments
* Consolidate your debt
o Save for an emergency. Learn how much you should save in case of an emergency.
o Keep track of your account. An important step in managing your finances is consistently tracking your account activity.
o Avoid overspending. Keeping an accurate record of your transactions is the best way to avoid spending more money than you have in your account.
These are just some tips that everyone should know. The importance of learning how to manage your money is something everyone should master. Not everyone learns these tips and then they get in trouble.
This holiday season take a little time to make sure you are making the right decisions when spending. Take advantage of sales and discount coupons. Only buy what you need. Use cash instead of using your credit cards. Make homemade gifts. And make a BUDGET and stick to it!!
Talk about your finances and make sure to take control of your money so it does not control you.
