What is Credit? - Introduction

As I get older, the more "credit" becomes important.  In order to be approved to buy a car, home, or furniture, my "credit" must be run.  But why?  I find myself asking a lot of questions, like what is "credit" exactly, and why must it be run?  What is a "credit score," and why is mine where it is? 


My transition into adulthood will no longer allow me to be ignorant about the subject.  So, in the spirit of learning and self betterment, I am going to tackle this beast head on. 

Save Money - One Coin at a Time

There are many methods and tips out there to help you save money.  Some advise you to set aside a percent of your earnings.  Others tell you to simply deposit $10 a week into your savings account.  Both methods work, of course, and they are both relatively easy, but I've discovered something better. 


Like most Americans, I live paycheck to paycheck.  I'm 26, and saving for my retirement a million years from now is not going to help me make it through the next year's financial challenges. Personally, living paycheck to paycheck is alright (for now), but it comes with many concerns.  The main concern is the lack of financial flexibility.  Meaning, I can financially make it through the daily maintenance of living, but If something big or unexpected happens, I'm screwed!


If my car breaks down, or my computer gets stolen, I will have no spare cash to cover that expense.  I will be forced to take out a loan, or sell something, or even worse, borrow money from the parents.  My inner future CPA won't allow myself to be put in such a position!


So, how do I save money for unexpected expenses?  One Coin at a Time...

Top Line - Bottom Line

Students, it's the weekend, tests are over, time to go to the local pub and kick back a few or hit the movies for a little well deserved RnR with friends.  One problem, you don't have any money!  Why? 


Struggling Graduates, trying to make it in this crazy adult world, the bills seem to hit you all at once.  One problem, you don't have any money! Why?


Single Parents, you've got mouths to feed, diapers to buy, a college fund to set up for the kids.  One problem, you don't have the money! Why?


You are either going to answer this question one of two ways...


"I don't make enough money" or...
"I have too much debt"


Both answers are correct, BUT its not that simple.


I'm going to explain it to you by way of Top Line - Bottom Line.