Save for a “Rainy Day,” something most Americans do not do. You need to build your emergency fund. Take 50 minutes and learn seven steps and apply them to your life.

You need to find out what you’re spending and compare it to what you are bringing in for income. This may come as a shock to you, if you’ve never kept track of your spending habits. Let’s get started.

You will need a pad of pager, a pen or pencil and a calculator. Next you will need the following: Credit card statements, Check registers, major buys receipts, and bank statements. You will also need records of your past income for the last 12 months. You should also make sure your spouse or partner gathers the same information.

You than need to create a worksheet that divides your spending into three categories.

1. Fixed expenses: or month to month expenses. Example, rent or mortgage, automobile loan or insurance.
2. Variable expenses: these can vary from month to month. An example would be utilities, groceries, gas, etc.
3. Periodic expenses: Example may be tuition, property taxes, and dues.

Figure out your total income and your total expenses than subtract your expenses from your income and this will give your your financial bottom line.

There are actually several different credit scores out there but FICO has become the industry standard. You can order your own FICO score by visiting myfico.com.

The range of your FICO score is from 300 to 850. The higher the number the better. If you’ve a score of 720 it is considered very good. Even if your score is well below 720 you may still qualify for credit but the creditors may chooseto make you pay higher interest. If you have a low FICO score some landlords mayselect not to rent to you so beware.

Here are some ways to improve your FICO score.

• Pay debts on time
• Grow your savings
• Pay down your account balances
• Fix problems in your credit histories
• Keep the amount of credit you apply for down

Your current creditors can use this information to raise your interest rates and lower your credit limits, and they can even cancel your account. If you apply for new credit, the creditor will review your report and determine whether or not they want to take the risk and allow you credit.

Other people also check your reports, such as insurance companies, employers, landlords. etc. If they find negative information it will influence their decision on if they want to work with you or not. They may also lean toward higher rates, etc. if you have negative information against your report. Landlords may refuse to rent to you and employers may not hire you or give you a promotion for the same reason.

The federal Fair Credit Reporting Act Saysthat negative information will stay on your report for 7 1/2 years. A Chapter 7 liquidation bankruptcy and a Chapter 13 reorganization will stay on your record for 10 years. A tax lien will stay on your report until you pay it off.

You are entitled to one free copy from eachbureau every year. To receive yours got to annualcreditreport.com or call 877-FACT-ACT.

If you have already received a report during the past 12 months they’ll charge you a fee of $10 per report.

If you need additional copies you will need to contact each agencydirectly with the following information.

• Equifax: equifax.com; 800-685-1111; Disclosure Department, P.O. Box 740241, Atlanta, GA 30374
• Experian: experian.com; 888-397-3742; P.O. Box 2104, Allen, TX 75013
• TransUnion: transunion.com; 800-888-4213; P.O. Box 1000, Chester, PA 19022

If you order by mail you will need to supply a letter with the following information.

1. Your full name
2. Your Social Security number
3. Your date of birth
4. Your current address and previous addresses for the past five years
5. Your phone number, including your area code
6. The name of your current employer

Here are four things to watch out for if you tend to live for the now.

• You save Littleor nothing at all.
• You almost always use credit instead of paying cash.
• You rarely think to pay off your credit sooner or as quick as possible, thinking that there will always be time to do it in the future.
• You almost never balance your check book, check your credit score, get your credit reports, or keep a household budget.

These types of attitudes can be dangerous, and they’ll catch up with you sooner than you think. If you fit in this category please continue to read this blog and others like it.

If you’re an emotional spender, you need to understand it and know it is an issue. One option is to get involved with Debtors Anonymous or call 780-453-2743. DA uses time tested methods to help you comprehend and gain control over your spending.

Do you ever see ads promoting saving, frugality, or self-denial? If you find yourself struggling to keep up with your neighbors and friends. You may need to take a second look at this. By trying to keep up with your friends, it may be driving you right into the poorhouse.

• Not paying bills on time
• Writing the checks but waiting to mail them
• Rarely balancing the checking account
• Taking cash advances from credit lines or individuals
• Accepting additional credit cards
• Paying only the minimum on charge accounts
• Bouncing checks
• Borrowing from family and friends

-Mary Hunt