If your financial picture does not correspond to this guideline, you might prepare a budget and a cash flow statement based on income and expenses during the preceding 6 to 12 months in order to identify gaps in income and find ways to cut spending. Include a contribution to savings. Experts recommend a reserve fund to cover 6 months of basic expenses. Itemize personal expenses for such things as clothing, travel, entertainment, and hobbies. Develop habits such as price shopping, menu planning, coupon dipping, and monitoring your use of credit to guard against overspending.
Credit can be essential to meet unexpected or emergency expenses.
Federal regulations prohibit age and gender discrimination in the granting of credit. Lenders must treat all income alike, whether from employment, retirement benefits, or other reliable sources. Still, it may be easier to get a national credit or charge card in your own name while you are employed. There are several kinds of home equity conversion loan plans, including Deferred Payment Loans and Reverse Mortgages, where you borrow against home equity and receive monthly or periodic cash payments. Unlike home equity loans or lines of credit, reverse mortgages involve no monthly repayments as long as you live in your home or until a predetermined date.