Everyone has a dream. A rustic cottage in the country, a shiny new sports car, the holiday of a lifetime, or the opportunity to run your own business. The problem is, dreams have a tendency to cost money – a lot of money. Barring a massive windfall, if you want to make your dreams come true, you need to plan.
You may find yourself in a position where you are looking for extra funds. Get your free credit score here to get things started.
Planning for your future
1. First, you need to set yourself a goal. Be realistic – what do you want to achieve, and by what date to you want to have achieved it? Maybe you want to spend your retirement travelling the world. Work out the age at which you would like to retire, and how much you expect your flights and accommodation to cost. Adjust these figures for inflation, and you have your goal.
2. Now you need to figure out how to raise these funds. If time is on your side and you have a regular income, then the obvious answer is to save. Set aside a certain percentage of your monthly salary until you have hit your goal. Keep your savings locked into an offshore bond or ISA account to make the most of the interest, and stop you from dipping in from time to time.
3. Don’t want to wait? Access your funds sooner by taking out a second mortgage on your property, or applying for a loan. Shop around a few different banks until you find a lending rate which suits your purposes, and make sure you don’t borrow more than you need.
How to borrow sensibly
Despite your best intentions, saving money is difficult. If you are serious about making your dreams a reality, you need to plan for the possibility that you will have to borrow money at some point.
When you ask your bank for money, the first thing they will do is run a credit check on you. This will give them access to your financial history and it will help them decide whether or not they want to lend to you, and at what rate.
Prepare for your credit report by getting a free credit score from a reputable credit agency.
Once you have this information, you can start taking steps to improve your credit rating, and get a better lending rate. It is never too late to change your credit score and open up a whole new world of possibilities in your financial future.
When you understand your creditworthiness, you can begin to make realistic plans for your future, and start making your dreams come true.