NewDay USA

“SMART”

Check your credit report for accuracy!

Credit reports are not always accurate.  The Federal Trade Commission’s 2013 study found that one in four consumers had errors on their credit reports that could have affected their scores. Make sure your report does not incorrectly list any late payments and that the amounts you owe for each account is correct. These mistakes could negatively affect your score. It is better to be safe than sorry, so check your credit report and dispute any errors with the credit bureau.

Make sure your information is consistent.

Providing complete, accurate and consistent identification information on your credit applications helps set up your credit history correctly from the beginning. Any new accounts you establish will be matched to the correct report and there is less of a chance that your credit file will be incomplete.

Pay your bills on time!

One very important thing you can do to improve your score is to pay your bills by the due date. Banks offer the option of setting up automatic payments to help you be punctual, just be conscious of your account balance to ensure you have enough money to make your payments. If you don’t feel comfortable with automatic withdrawals, you could set up payment reminders that will help you stay on track.

“NOT-SO-SMART”

Ask for a lower credit limit.

A lower credit limit can help you control your spending by capping how much you can borrow, but 30% of your credit score is based on how much you owe, according to MyFICO.com. If you cannot pay off your debts, lowering your credit limit will actually damage your score by increasing your utilization ratio—a formula comparing how much available credit you have and how much you owe.

Pay off an installment account early.

Paying off debt sounds like a great plan to improve your credit and save in interest, but paying off an installment loan could hurt your score by raising your utilization ratio. Instead, pay off cred card debt to help raise your credit score.

Nicholas Testo is a 2nd Lieutenant in the Army National Guard and a dedicated member of our NewDay USA team.  He joined the Guard on May 11, 2014 because he “had a calling to do and be something higher and greater than myself.”  As an infantry officer in the 1-175 Infantry, he is platoon leader and in charge of 40 men.  Nick’s leadership skills, work ethic, and discipline have translated seamlessly into NewDay’s company culture where he is successfully training associates in handling phone calls, quality control, and VA guidelines among other duties.

Nick was activated on April 27th earlier this year during the Baltimore riots where he was attached to Charlie Company of the  1-175 IN.  When the assignment lasted longer than expected, Nick was happy to use the knowledge he gained at NewDay USA to offer financial advice to his fellow troops.

Nick is up for promotion to 1st Lieutenant and has big plans for his future, including IBOLC in December followed by Ranger School.

We are so proud of Nick and we are so happy to have him on our team!

What are your dreams for your future? Do you hope to travel the world? Escape the big city in favor of the peaceful countryside? Try out a new hobby? Whether you just started working or you’re nearly finished, there is still time to grow your nest egg. It’s never too early, or too late, to begin saving for retirement!

In your 20s- Start saving early! You can benefit from decades of growth. Set up automatic withholding. If you have a 401k plan, money is withheld from your paycheck and you never get a chance to spend it.  If you don’t have a 401k plan, consider setting up a direct deposit to an individual retirement account.  Some employers match a percentage of your contributions. Consider a Roth 401k account; you pay taxes on your contributions. When you are ready to withdraw for retirement, withdrawals will be tax free!

In your 30s- Identify your retirement dreams and goals and make up a plan on how to accomplish these goals. Thirty-somethings often have more factors, such as marriage, children, a mortgage, and other bills, that complicate their finances. Prioritize your saving efforts and paying off any debt. Create a budget and allocate a certain amount to be automatically taken out of your account each month.

In your 40s- You are now responsible for your growing children as well as your aging parents. It is time to get life insurance and an estate plan. Create an emergency fund, separate from your retirement fund, to cover any unexpected expenses that arise as well as the expected ones. Clean up bad debt by paying off credit cards; pay off higher interest rate cards first. Put your retirement saving plan before your material wants.

In your 50s- You still have time to save! Be sure to make the most of IRA or 401k opportunities and remember, you are now eligible to make catch-up contributions. Eliminate debt. Can you make extra principal payments to try to eliminate that monthly mortgage payment before you retire? Can you pay off your credit cards and try to pay off your car? Look for a fun part-time job that you will enjoy, all while making some extra money to save away for retirement. Stay healthy, taking care of yourself you can prevent costly medical expenses. Think about downsizing your lifestyle. It may be practical to move into a smaller home with smaller monthly payments.  Sell items that you don’t use anymore.

Your company happy hour is a great place to make a lasting impression—but will it be a positive one or a negative one?

 1.    Don’t consistently bail. Some people look forward to socializing with their coworkers after hours, while others may see the event as an extension of the work day and would rather just go home to relax. Happy hour is a great way to build relationships with coworkers you don’t see on a daily basis. Attending shows that you are dedicated to and interested in the rest of the team. Consistently skipping happy hour means you are missing out on valuable networking opportunities.

2.    Don’t drink alcohol? You don’t need to consume alcohol to attend happy hour. Order a soda and engage in conversation and no one will know the difference.

3.    Pace yourself. If you do choose to drink, learn to sip your drink rather than guzzling it down. Order one drink and make it last. If you have reached your limit, order a decoy drink to carry around as a prop. You should have something in your hand to avoid looking anxious to leave.

4.    Eat before the event. Drinking on an empty stomach allows the alcohol to affect you sooner. You may feel lightheaded or unable to concentrate. Eat a snack on the way or order an appetizer for your table.

5.    Be professional. Remember, your reputation is on the line. Use your best judgment with what you say and how you behave. You are showing your coworkers and your boss a glimpse of your social skills. This is not the setting to “let loose” or “blow off steam.”

6.    Avoid gossip. News travels fast! The last thing you want is some negative gossip being traced back to you! Stick to easy professional topics that make everyone feel comfortable.

 Mixing business and booze is often easier said than done, so remember: someone is always watching and your reputation is at stake. Show your company you are a team player and that you can remain professional while still having fun!