November 2020 – My WordPress Website

Some best practices for personal financial resource management

What does the phrase “being a good steward” mean, anyway? And how does the TGS Financial System help you be a good steward financially?

First, let’s break it down to the word “steward” itself. Here is the definition of “steward” from the Merriam-Webster Dictionary: the conducting, supervising, or managing of something especially: the careful and responsible management of something entrusted to one’s care.

So, a good steward carefully and responsibly manages their financial resources. Let’s learn more about how this is accomplished and explain the role of the TGS Financial System in the process.

A Good Financial Steward is Mindful of Their Resources

The first step in mindfulness is actively paying attention. A good financial steward stays aware of their finances. Fortunately, technology provides ways to manage this simply. An example is the TGS Financial System, which is a proactive app. It sends a notification when there is something important to know about your credit.

Most people carry their cell phones everywhere these days. As a result, users of the TGS Financial System stay mindful since their credit management system is always within reach. It’s a way to manage your credit cards and creditworthiness. And it provides information for making the best purchasing decisions.

For example, someone with the TGS Financial System App needs a new refrigerator. They make a selection at the home improvement store and check the TGS Financial App in line to checkout. The system shows which credit card is best for the purchase in real time. In this case, their financial system app resulted in a mindful purchasing decision.

Another way to practice financial mindfulness is to review your purchase history over a given month. Reviewing monthly spending reveals spending trends.

For example, you notice one month that your spending at restaurants was higher than normal. It isn’t necessarily a negative change. Being a good steward, you decided to spend more at local restaurants because they are struggling. And you are practicing good stewardship through awareness of how you spent money that month.

A Good Steward of Financial Resources Manages with Intention

Some associate good financial stewardship with frugality. However, being a good financial steward doesn’t mean not enjoying nice things.

In the example mentioned with local restaurants, good stewardship meant supporting struggling businesses. It also resulted in some excellent dining experiences. The cheapest choice is not always the right one. A good steward knows this and pays attention to the intent behind purchase decisions.

Managing finances with intention is also creating a budget that allows for giving back. One view is that financial resources belong to God. A natural result of this view is to want to give back or share what’s been given. Good stewardship is managing resources so that personal needs are met with room for giving.

This is accomplished by setting both long- and short-term financial goals, then creating a budget that achieves those goals. This is followed by carefully managing resources that are tangible, like cash, and intangible resources, such as credit.

Anyone Can Be A Good Steward of Financial Resources

“I’m just not good with money,” is something you hear people say. It may be something you’ve said yourself.

There is no degree, income, or math skill requirement for good financial stewardship. In fact, a past of financial difficulties doesn’t mean you can’t be a good steward.

Thankfully, the internet provides everyone with the education necessary to be a good financial steward. All it takes is a willingness to learn and some effort. Individuals in your life who practice good stewardship offer bonus resources for gaining knowledge and insight.

There are a variety of tools to use for good financial stewardship. The TGS Financial System is an example of one designed to support good stewardship. Its easy-to-use interface makes it an accessible tool for anyone.

How the TGS Financial System Supports Good Stewardship

The TGS Financial System provides information that helps you manage your finances better. It provides more than credit card management. With the system, you know your debt to income or usage ratios with a simple calculation. This knowledge is valuable for making financial decisions moving you towards your goals.

The TGS Financial System shows spending habits and how they affect your credit. The information is available at your fingertips to help you stay on track. The interface is simple to use. It’s a resource designed with you in mind.

The mission of TGS is to provide this resource to assist you in becoming a better steward. Visit our website to learn more about how The TGS Financial System supports this mission.
Contact us with questions or feedback. We love hearing from you!

Your first experience with the world of credit building often begins with a credit card. It is exciting to receive a shiny new credit card for the first time. Credit cards do help you build good credit if properly managed. The Good Steward Financial System helps to establish practices and strategies with credit cards early on that can help you achieve future goals.

The Amount of Credit You Are Utilizing Affects Your Credit Score

Your credit score is affected by your debt utilization percentage. Debt utilization is how high of a balance you carry compared to the credit limit on an account. For example, if you have a credit card with a credit limit of $2000 and you charge $1800 per month, you are utilizing 90% of your available credit. A high debt utilization score has a negative impact on your credit rating.

If you want to improve your credit score, the recommendation is to use no more than 10-30% of your available credit every month.

Some people consider spreading purchasing out over several credit cards to help manage their debt utilization percentage. This approach has more drawbacks than benefits. First, there is the extra time involved in managing multiple monthly credit card payments. Even letting one monthly payment on a credit card slip has a negative impact on your credit score.

Your debt utilization score is weighted at 30% of your total credit score, and the only factor that carries more weight is the timeliness of your payments. Payment timeliness is weighted as 35% of your total credit score.

So if you want to raise your score, keeping your debt utilization low and paying bills is the best strategy. Why risk juggling four to five monthly credit card payments when you could accomplish a better result with one to three?

A potential lender may view too many credit cards on your report as a red flag, even if you are making payments on time.

How Many Credit Cards Should You Have?

How many credit cards you should have is a difficult question to answer, because there is no magic number. It is true that credit scores can increase slightly when you are approved for more than one credit card. A lot of people find success with having one credit card for daily purchasing that they pay off in full every month, and one or two reserved for emergencies or larger purchases. By not carrying the emergency cards on a daily basis, they are less likely to run up those balances on impulse purchases.

Before opening multiple credit card accounts, it is important to remember that your credit score can take a hit if numerous companies are pulling your credit report in a short period of time.

Your credit score is also affected by the average length of time you’ve had accounts open. When you open a new credit card account, you risk lowering that average.

As you build your credit score, the number of offers for cards you receive in the mail will increase as well. Credit card companies make it tempting but it’s best to proceed with caution. Jumping from one credit offer to another based on the rewards program offered, for example, is not going to advance you towards your long-term credit goals.

How to Raise Your Credit Score Without Spending Money

It can be frustrating when you realize it takes credit to have good credit. There are some ways you can raise your credit score without making purchases on credit cards and paying the balances on time.

One way to raise your credit score without spending money is to see if someone with good credit can add you as an authorized signer on a card in their name. If that card is paid on time, it will have a positive reflection on your credit score.

If you qualify for a credit card on your own, you can build your credit by charging a small amount and paying it off every month. Consider charging small monthly subscriptions like Netflix or your preferred music service to one card and establishing a history cycle of paying those balances in full every month.

Another good way to build credit is to obtain a secured credit card. Secured credit cards require you to provide money upfront for the amount of credit you have on the card. The amount you put down is your credit limit and caps your spending. Secured credit card companies do report to the credit agencies. You can build your credit by paying off any purchases you make on a secured credit card monthly.

Even if you don’t have credit cards, you may be paying bills on time that don’t report to credit agencies. Landlords and utility companies don’t typically report to credit agencies, but you can certainly ask them to. If they agree, you can build some credit this way and receive the reward for what you were already doing.

General Suggestions For Building Credit

First and foremost, if you want good credit pay your bills on time. If you struggle with this, consider setting up automatic payments from your bank and using The Good Steward Financial System to manage your credit cards.

Another suggestion is to not close credit card accounts even if you no longer use a particular card. As mentioned, your credit card score is affected by building history, and if an account is in good standing the longer it is open will benefit your credit rating.

Most people start building credit with credit cards, but one factor in improving your credit score is diversification in the types of credit you have on your report. Having a car loan or mortgage builds credit, but if those options are out of reach for the time being, you can take out a small personal loan for a purchase like a computer or piece of furniture. These are considered credit builder loans and will do just that as long as you pay the monthly bill on time.

Credit cards can be beneficial in building good credit, but it pays to keep the big picture in mind and incorporate them into an overall strategy for building good credit. Contact us for more information on how The Good Steward Financial System can help you with your credit goals.