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June 30, 2020
You've probably seen a lot of advice that focuses on making small changes to improve your finances, like saving loose change and ditching your daily caffeinated beverage. Instead, settle down with your morning brew, and learn about alternative ways you can make a big impact on your finances.
- Make (and stick to) a budget. This may be the most important step you can take to gain control of your finances. Knowing where your money is going can help you set up strategies to cut spending and boost savings. Check out budgeting apps – they may help you get started and keep you on track.
- Lower the interest you pay on credit card debt. Paying the minimum on even a small credit card balance can cost you in interest over time. Contact the credit card company and ask if you're eligible for a lower interest rate. In addition, look for a credit card that's offering no- or low-interest balance transfers. Then, avoid incurring any new charges while paying off your debt.
- Get a new quote for insurance. You may be able to save a significant amount of money on your life, homeowners or renters, and auto insurance policies by requesting quotes from several agents. Most will offer significant discounts if you bundle policies.
- Shop around for cellphone, TV and streaming services. When was the last time you took a close look at your bills for cellphone, cable and streaming services? You could be paying for plans or services you no longer need or want. Call your current providers to renegotiate your current plans or compare costs with other companies.
- Take advantage of tax breaks, rebates and incentives. Whenever you get a bonus, raise or tax refund, put the money into savings or use it to pay down any high-interest debt. Do you qualify for any state or federal tax credits? If you own a home, you may qualify for rebates when you install energy-efficient appliances or windows. In addition, the federal government and several states offer tax incentives on electric cars.
- Maximize your employee benefits. Employee benefits like a 401(k) plan, health savings account and flexible spending account are worthwhile perks. Make sure you're getting the most out of your employer-sponsored benefits, especially those that save you money by lowering taxes or out-of-pocket expenses. Find out if your employer offers tuition reimbursement or will repay a portion of your student loan debt.
- Invest in your financial future. Set up a savings account with automatic transfers from your paycheck so you're not tempted to overspend. Once you have three to six months of expenses in savings, think about putting money into other investments like a mutual fund or a money market or CD account. The earlier you start investing, the longer you'll have to benefit from compounding returns.
MidCountry Bank offers a variety of financial tools and products to help you reach your financial goals. To learn more, contact a banker today!
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