Abandon Nest

Earlier this year, I was very curious about what kind of information the people looking at my financial records were receiving. On the advice of my father, I decided to check my credit report online. Based on what I found, I recommend that every one of you do the same. Here’s some reasons why:

1. Find Forgotten Accounts - You know that credit card you applied for when you first started college? The one that you threw in your desk drawer as the emergency card and completely forgot about? Yeah, that’s still on your credit history even if you don’t use it ever. Lenders will look at open accounts and wonder why you have them.
2. Verify Your Information - What are your lenders reporting to the credit bureaus? If you get your credit report, you’ll find out, and you’ll find out if the information is valid and correct. There are times when the credit bureaus flat out receive incorrect information. If you discover this, you can write them and have it corrected.
3. Confirm Your Credit Standing - Credit scores are important because it’s how lenders decide what kind of interest rates to give you, whether to lend you money, and decide on various other terms. If you have a high credit score, you can be fairly certain that you’ll be ok when you go to borrow money or sign a contract (lease, cell phone plan, etc.). If you have a low credit score, you need to start doing things that will boost it. Use your credit cards responsibly, make payments on time, and don’t exceed your credit limits.

When I went to get my credit report, I did it from this website. It’s reliable, and you get the credit report for free. I highly recommend it and encourage you strongly to get your credit report. Trust me, it’s worth it.

Kira says you can also get your credit report absolutely free at AnnualCreditReport.com. Thanks Kira!

Have you ever encountered an unexpected expense? I’m sure you have. We all have. Today, I encountered a large expense that (admittedly) I knew was going to come up sooner or later. However, I had no idea when it would hit.

I drive a 1987 Chrysler LeBaron. It’s a nice car and gets me from place to place quite nicely. However, it’s a little beat up and a lot old. I knew that it was going to have to have work done sometime this summer, I just didn’t know what was going to have to be done. Because I was anticipating problems, I’ve been saving for quite some time. Today the bill hit: $628. Ouch!

Fortunately, I was prepared. This expense was not a problem for me because I’ve been anticipating car repairs and saving for it. Thus, I’m quite pleased with myself and my budgeting. This should be a lesson to everyone, though, that you have to anticipate even the unanticipated in your financial life.

Dave Ramsey’s Financial Peace is a great book with practical and practicable lessons that will help you develop as a master of your own financial destiny.

I was lent Financial Peace by my manager. In addition to being an engineer, he doubles as a financial counselor for members of his community, so I figured the book would be worth checking out. As soon as I was through the first chapter my suspicions had been confirmed. This was a great book that deserves to be read by anyone who is either just starting out with financial management or has encountered unexpected financial hardships.

The best thing about Financial Peace is the ease with which it can be read. The typeface used is large and the tone of the book is mostly conversational. You’re never commanded or assaulted by the author. Rather, you’re given suggestions and advice, as from a good friend. The book has a human touch that is rather devoid from most financial pieces.

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