Credit Score Importance

A budget is the first step to personal your financial responsibility. It is important to know the significance of credit and debt. Without knowing what each does to you personally, can be very harmful to your financial well being. Having a good credit score can help you sustain your personal financial responsibility. Getting a good credit score is not that difficult, but maintaining a good score may be. You need to have manageable debt, so that your credit score won't decline but will peak at a good score and will stay at that score or it may keep rising to a better score. Having a substantial financial well being will allow you to achieve financial independence.
Creating a budget is an essential component of responsible money management.
Knowing what each credit bureau is looking at is important; so you just need to keep all your stuff together. Also a helpful thing to know is that a FICO(Fair Isaacs Corporation) score and a credit score are the same thing. Now that you know how credit can impact your life, now let's talk about the importance of insurance. There are many different types of insurances available for you to choose from. But there are four types of insurances that everyone needs in their life; life insurance, health insurance, long-term disability coverage and auto insurance. Life insurance is very important, it is needed so that when you die, a sum of money that you have been earning and getting taken out of your checks, it is to help your living family. The sum of money is to cover the funeral expenses and give a financial cushion. “Industry experts suggest a life insurance policy should pay ‘ten times your yearly income’ ”(McMaken). Also while choosing your life insurance mortgage payments and living expenses such as loans, credit card payments, taxes, child care, and
Not having actual bills and payments needing to be paid i have many flaws in my budget. Finding the flaws of your budget is very important. For instance one flaw in my budget is that I said it’ll take only $45 to pay the phone bill. Another flaw within my budget is that I didn't put any money aside for medication. What if one of your insurances don't cover the cost of the medication fully, setting money aside just as a precaution is important. One other major flaw in my budget is that I didn't put any money out for lawn care. When I first was doing my budget I was think that it meant that someone was going to come mow your lawn, but now that I am taking a relook at it I am looking at is as if the blade from the lawn mower breaks I am going to go need to go get a blade for it or gas to put in it. So I have to set aside some money for lawn care. Therefore a lot of adjustments need to be made on my