Jack Howley has assisted both corporations and individuals in securing their financial future. Working in Naples, Florida, Jack Howley now focuses his time on a series of financial management goals personalized for his clients. To accumulate wealth, the basic foundation includes debt elimination.
The Benefits of a Good Credit Score
“Good credit” refers to an individual’s credit history. If someone consistently pays off their credit card on time, they are considered low risk. Credit scores are provided through reporting agencies and are used by future lenders.
Depending on the credit report, different scoring methods may be used. FICO is one of the most popular scoring methods used and collects other data to form a report. This data is separated into five categories: payment history, amounts owed, new credit, credit mix, and length of credit history. Typically a good credit score is above 670.
Good credit is essential for overall savings. By obtaining good credit, an individual can save on interest and fees, avoid utility deposits, buy travel protections and purchase a house.
Most individuals are told at some point to use a credit card. Charging items to the card will potentially generate credit. Unfortunately, paying off credit cards can be extremely difficult without the right tools.
How to Master the Art of Debt-Free Living
Debt has increased throughout the United States due to the pandemic. In total, the debt balance has grown approximately 6% since 2019. With unemployment rates, student loans, mortgages, and credit card fees, debt is a common problem.
To combat debt for a good credit score, certain methods work. Strategizing is one of the biggest tools available for those who are willing to put in the time.
Budget
Creating a budget is an effective way to monitor where money is going. By planning out which costs are necessary, a monthly schedule can be made. Jack Howley has advised individuals on both complex and simple budgeting techniques. Since everybody’s expenses are different, a personal budget is necessary.
A budget includes how much money is earned every month as well as how to spend it. Many individuals use the 50/30/20 rule. This means that 50% of the total income is used on necessities. 30% is used for items that are desired. 20% is set aside for debt repayment and savings.
Paying in cash can curb unnecessary expenses. The envelope system is one method of budgeting where cash is used for all three categories. Individual envelopes with the words necessities, wants and savings are used to divide up the money. For the “wants” envelope, smaller bills are often best.
Live Frugally
Living below one’s means is a way to increase savings. After creating a budgeting system that works, the full monthly expenses can be accurately determined.
There are many small ways to live frugally that will not affect the quality of life. Replacement is a key strategy for this. Instead of eliminating certain activities or foods from a routine, replacing them with a less expensive alternative may work better. Examples of living frugally include shopping at second-hand stores or lower-priced retail shops. Buying store-brand packaged goods is another way to shave off extra costs. Instead of exercising at the gym, going for walks, or practicing yoga at home may save money.
Cooking is one of the most effective ways to save money. Eating out can be expensive if the amount of food only serves as one meal. Cooking bulk meals on the weekend will provide several meals throughout the entire week. Recipes can be found online, and ingredients are often cheaper at bulk food stores.
Earn Side Money
Extra money can be earned through a variety of approaches. The gig economy is an efficient way to control the number of hours worked. For those who only want to work for an hour or two on the weekend, this type of work can usually be found online.
Other ways to earn extra money include babysitting, lawn care, and cleaning. Many homes can afford to be decluttered. If there are extra items, articles of clothing, or other unused electronics, these can be sold at multiple venues.
Selling used items online can be a lucrative way to earn a small but steady income. Quality photography for these goods can be done without an expensive camera. Staging and lighting or using a live model for clothing frequently help. Marketing knowledge can also make a difference when selling online.
Develop a Skill
An increase in education is always helpful when finding new ways to make money. Several options for advanced career opportunities do not involve paying college tuition. Many skills are taught for free online.
Watching tutorials can help individuals with no prior experience gain practical and technological expertise. Foreign language classes, yoga instruction, and even accounting basics are taught using online platforms. Even using these classes to advance an existing skill can help in the workplace.
Save
Savings is a critical part of managing money. Jack Howley believes that saving is necessary even when an individual has zero debt. For those who owe any money, starting with a 15% monthly savings is reasonable.
Using a dedicated savings account is helpful by separating savings from checking (or the envelope system). Dipping into a savings account is easy to do at the end of the month. A separate space for money can keep this extra amount out of sight and out of mind.
Consistency Is Key
Budgeting and living frugally can take their toll when there is no end in sight. Before budgeting, Jack Howley recommends a full assessment of how much money is owed. Once the entire amount is examined, a budget can be broken down into segments.
Debt can feel oppressive to anyone. With the right type of financial advisor, debt can be a temporary setback. Once a good credit score is established, there are many more opportunities to save money.
