Whether you have more money or more debt, there are things you can do to increase wealth and reduce debt. You may start a side hustle for some extra cash, or you may need solutions to grow what you have. Wherever your starting point is, your financial health is important, and it is never too late to start doing something about it. These 5 smart money moves are easy to follow and have proven to be very beneficial.
Create a Budget
Lot’s of people get by without a physical written down budget for their personal finances. However, you would be amazed at how simply budgeting your money is the first step to increasing your wealth. Even if you have a good general picture of what comes in and goes out, the simple exercise of mapping it out and formally allocating funds is a big help. It’s a bit like cleaning out your refrigerator. You find a lot of spending that isn’t really necessary, and you can identify where some of your problems lie, just by reviewing your numbers.
Improve Your Credit Score
It’s easier than ever to check your credit score and to develop ways to improve it. Look up your credit score and immediately take steps to get to the next level. Pay attention to your credit limits and how close you are to reaching them. The further your debt is from your limit, the better. FICO also looks to payment history and the age of your credit accounts. consult your bank for tips on how to improve your score specifically.
Refinance Debt with High-Interest Rates
Target your high-interest accounts to pay off first. Even better, refinance to get a better rate. If you have a credit card debt with a high-interest rate and you qualify for another credit card, seek out a card with a 0% APR on balance transfers and no annual fees. The APR will go up after a year or so, but the goal is to have your debt removed, or significantly lowered by that time.
Use an Investment App
There are now all kinds of investment apps that are made specifically to create accounts and distribute funds. You can invest a little or a lot. Some apps have you round up your change at every purchase to be deposited into your account and then your funds get distributed as you prescribe. Look for the app that is best for you and has the flexibility and investment potential that meets your needs. Don’t forget to read the ratings and reviews.
Look at Your Insurance Policies
We can always save money on our insurance premiums, right? Insurance is one of those things you just pay for and forget about until you switch companies to save 15% or more. However, it makes good financial sense not to forget about your insurance and to actually revisit your policies regularly. You can make adjustments to your policies to match up with your fluctuating needs and make sure that the coverage you have is actually the coverage you want. This doesn’t just go for auto or home insurance. Life insurance has a lot of advantages, although it gets tougher to budget for the longer you wait.