Using Quicken to Save Money

Money management is one of the reasons I am capable of surviving in the DC area on $25,000 a year. After getting Quicken on my computer, I downloaded every bank transaction I had done that was still online, and went thru and categorized everything. I then started using my check card or credit card for everything, so that when I downloaded my bank transactions that week I could keep track of where my money was going. When you first start you will be amazed to find out what you really do with your money. One of the first things I noticed was the amount of money I spent at places like Starbucks, McDonalds, 7-11, and other fast food places.

I realized that if I brewed my own coffee, brought my lunch to work a couple days a week, and cooked my own food most nights, that I would save hundreds of dollars. I knew that those places cost me money, but I didn't realize how much it added up to. This doesn't mean that I stopped going entirely. If I am in a hurry I will still occasionally wind up at a fast food place, or if my caffeine addiction kicks in I'll get the hankering for a caramel machiato, but I have cut back a lot on all of these things, and I keep track of how much I spend at places like this.

One of the best ways to save money is to just know where it is going in the first place. Another great thing about Quicken is that it figures out what you regularly pay. Stuff like rent, phone bill, student loans, etc pops up near when it is due. You can then look at a cash flow forecast, punch in any other payments you are expecting, and you can figure out how much money you will have for months to come. Want to plan a vacation in August? Well start tucking away money in April for it and keep track of how much you have away for the vacation, and when it comes around you are ready.

Using computers to track expenses can make life much easier.

Credit Repair Part 1

When I returned to the D.C. area my credit wasn't, well still isn't, that great. In my first college stint I had racked up a bunch of credit card debt. I was one of those people who, after realizing the hole I had put myself in, paid off all the cards and then proceeded to cancel them. Well that was a stupid mistake. Not only did I add all the negative credit remarks to my report, but I then eliminated all of my available credit. Now, after getting life back on track, finding a full time job, and stabilizing my spending I am trying to fix my credit. The first thing I learned is that none of the major credit card companies wanted me back.

That left me with two options: get one of those 'for bad credit' cards offered by companies like Orchard Bank that charge you $150 just to open the account; or get a secured card. I opted for the secured card. After looking at a few banks I settled on Bank of America. Not only do they have secured credit cards thru MBNA, right now they are offering up to $50 for opening up a checking account. If you are interested in learning how to get that $50 drop me a comment and I'll send you the referral link.

One of the first things I learned was that getting the secured card isn't as easy as it sounds. First you need to have an account at BofA, then you need to send them the $300(that's the minimum), and then it can take up to a month for them to actually get the card to you. So if you are planning on using that card right away, forget about it.

Once you have the card, plan how you are going to use it. I get my statement on the 20th, and my payment is due on the 10th. I spend around $200-300 a month on groceries. So I make my payment on the 1st of the month(payday), and then do my grocery shopping throughout the month. At the end of the month I pay off the entire balance. This showed up on my credit report the month after I received the card. It shows that I am currently making full payments each month.

Stay tuned to learn other methods of getting good items onto your credit report.