We are always looking for a quick fix, but as we all know, the recommended fixes hardly work. Today, however, we reveal financial fixes that work, and no, we’re not throwing your way a scheme promising to double your cash in 6 hours or one that will erase your debts. Instead, we’re highlighting some of the things you could do to protect and consequently grow your finances. These moves will not only help you repair your credit but also help you fund your retirement. And you will have to work at some of these things.
1. Review all your credit card statements
If you want to fix your finances, the first thing you need to do is look at where your money goes. Your credit card statement is an excellent place to start. So, sit down with your recent credit card bills and draw a line through each event or purchase that, in hindsight, should not have taken place. These are the events or purchases initiated by hunger, anger, loneliness, or tiredness. Once you identify these purchases or events, you will be at a position to stop yourself from future emotional spending mistakes. After identification of the mistake, it will be easier for you to avoid the mistake in the future.
Also, now is a good time to unsubscribe from the things you don’t need. Do you need all that fun, tech, or clothing expense on your budget every month?
2. Review your tax refunds
If you got a hefty check from the tax man in the past year, you should speak to your tax guy to help you adjust your withholdings. The tax refund is an interest-free loan to the tax man, and you want to be sure that you’re not losing any money.
3. Bundle up your insurance
If you’re a medical device consultant looking for an insurance cover or covers for different things, you could save money by having one company to take care of all your insurance needs. Why? You could be entitled to better rates when you bundle your auto, homeowner’s and your umbrella policies under one company. Remember that you can fix your finances if you work on saving each and every dollar that comes your way.
Besides bundling, you also need to raise your insurance deductible to carve out some room in your budget. Doing this means that you will be paying lower monthly premiums.
4. Go digital
If you haven’t embraced the power of the digital world yet, now is the time. There are many apps and applications you could use to track your expenses, making sure that you not only account for your expenses, but you also save money. Tracking expenses will also prevent you from making impulse purchases or overdrawing your accounts. Speaking of expenses, don’t you think it’s time you renegotiated your cable package?
5. Automate your savings and essential expenses
You know that you should always pay yourself first, but you also know that it’s easier said than done. So, allow technology to help or place a standing order with your bank. Either way, saving into your retirement account automatically will ensure that you don’t steal from yourself. Create different savings accounts and pay yourself first. You should also pay off your essential and only start spending after you’ve taken care of your obligations.
Finally, enroll in a high-yield checking/ savings account and take advantage of your employer’s benefits.