20 WAYS TO IMPROVE YOUR FINANCES IN UNDER 20 MINUTES

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Alberta Bailey
5 years ago
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2 20 WAYS TO IMPROVE YOUR FINANCES IN UNDER 20 MINUTES We are all busy, sometime it is really difficult to take the time to think about and act on ways to improve our finances. In the past, I have repeatedly become determined to improve my financial situation, spent tons of time making a plan, doing research, and documenting everything I planned to do. This took so much time and effort that when it came time to acting on my plan, my enthusiasm soon faded because I was literally burned out from just thinking about it and planning. It took me a while (I m a bit hard headed), but I finally learned to slow down. After all Rome wasn t built in a day, so the saying goes. And, that every little small step that I actually accomplished to improve my finances would eventually lead me where I wanted to be. This is a list of 20 small manageable steps you can take when you have 20 minutes or less of spare time to help you improve your finances. Every small step you take to improve your finances will add up and you will eventually make a major impact in your financial life. Now is the time to take action, putting it off will only hurt you in the long run. Pick one task a day, or a week, or whenever you have a bit of time, tackle one of these tasks at a time and you will soon be on your way to a healthy financial future.

3 SET FINANCIAL GOALS Have you ever heard the saying How will you know how to get there if you don t know where you are going? The same is true on your financial journey, if you don t know what goals you are truly trying to reach, then you will most likely get lost along the way. You should set short, mid and long term goals. What are your goals 1 year from now? How about in 5 years and ultimately where you want to end up in your journey. Take a bit of time and define what you are really wanting to accomplish financially. Whether it is getting out of debt, being able to afford that dream vacation or purchasing your first home. Put your goal on paper, document how you plan to reach these goals and the target date you are going to achieve each goal. I like to create visual reminders that I display in my office or around the house to remind me of what I am working so hard to accomplish. It is so much more motivating than just writing them down on paper and filing that paper away somewhere only to glance at it every now and then. SET YOUR SAVINGS ON AUTOPILOT Have a portion of your paycheck deposited directly into a dedicated savings account. It only takes a few minutes to change your direct deposit allocations. This way you don t even need to put any effort, time or even think about it. After a while you won t even notice the difference in your paycheck and will be pleasantly surprised when you check your savings account balance. I would recommend that you open a savings account at a bank other than the one you normally do business with. This will make it more inconvenient to dip in for a few

4 dollars here and there or transfer money into your checking account when things get a bit tight. TRACK YOUR SPENDING Tracking your spending is a habit you really should need to adopt. It keeps you accountable of how much you are spending because often times we lose sight of where our money is going. We check our account balance at the end of the week or month and ask ourselves, Where did my money go? When you don t know where your money is going, it is so easy to overspend. Find a way to track where every penny is going. There are plenty of apps or websites that make it super simple to do this or you can create a spreadsheet if you prefer. It doesn t matter which method you choose, you just need to do it and review where you money is going. You will be more aware of how certain want or luxury purchases could take a big chunk out of or your wallet and derail your financial goals. Would you rather have that daily latte and over priced shoes or financial stability? CREATE A BUDGET A monthly budget is a vital tool in order to improve and maintain your financial health. Your budget will help you manage where your money is going, determine how you can achieve your financial goals and brings order and awareness to you spending as well as your saving. Creating your budget doesn t need to turn into a week long project, with all the tools out today, you can easily create a budget in 20 minutes or less. Find a web tool, smartphone app or build yourself a basic budget spreadsheet, whatever works best for you.

5 TALK TO YOUR PARTNER Make sure that you and your partner are on the same page regarding your financial goals. I ll tell you that both of you will be fighting a losing battle if you are working against each other. Get in line with each other regarding your financial goals, you both may need to compromise a bit but it ll be worth it. Once you are both on the same page and are working toward the same goals, take a bit of time each week to discuss where you are at. What struggles each of you are facing and ideas you both may have on how to cut back on spending. GET MORE FROM YOUR JOB If you are lucky enough to work for a company that offers benefits, you should take advantage of everything they have to offer. Take some time to review all the programs your employer offers and go talk to your HR manager for more information. Does your company offer a match for contributing to your retirement plan? Do your best to contribute the maximum amount that they are willing to match to get the full benefit, what s better than getting free money. What about flexible spending accounts or wellness programs? Take advantage of health and disability insurance to protect your long term financial future. AUTO BILL PAY Staying on top of your bills is a must to improving your finances. It not only saves you from incurring costly late fees and increased finance charges; it also improves your credit score which saves you money in the long run by rewarding you with lower interest rates.

6 Sign up for auto bill pay for all recurring monthly bills to save time and money. It literally takes less than a few minutes to enroll and it ends up saving you the time every month. You should also make sure to sign up for or text alerts that will notify you a few days before you payment is actually process. This will give you a heads up to make sure you have enough funds in your checking account. Another option is set up calendar reminders or alerts on your phone to notify you of upcoming due dates. TAKE A DAILY MONEY MINUTE Take some time every morning to log into your bank accounts. Check your balances to make sure that there are no errors or there is enough money to cover any upcoming withdrawals to avoid overdraft and late payment fees.. You should also review transactions posted to your account from the prior day to make sure there are no errors. Reviewing your balances also gives you the opportunity to plan for the day ahead and brings awareness of how much you are spending daily, which in turn will help you manage your money better by making you more aware of where your money is going. REVIEW YOUR CREDIT REPORT Review your credit report at least once a year to make sure there are no errors. You can easily get a free copy of your credit report annually at freecreditreport.com in no time. Make sure all information is accurate and up to date.

7 If you do find an error send the reporting agency a short and to the point note letting them know about the error and send them any documentation supporting your claim. I had to do this once and it was very painless, and the error was removed from my report within a few days. Having a negative mark removed for you credit report will translate into an increase your credit score which in turn could reduce interest rates that you are being charged and possible a reduction in your insurance rates SET MONTHLY FINANCIAL GOALS Setting financial goals, as we already discussed, is your road map to where you want to end up financially. But it could get discouraging sometimes when reaching your goal seems so far away. Let s say one of your goals is to dig yourself out of $20,000 worth of debt within two years. That breaks down to $192 a month. This makes it easier track your progress and adjust your spending if need be. It s also a good way of keeping yourself motivated and your mind on the end result. REQUEST BETTER INTEREST RATES Paying lower interest rates on credit cards and loans can go a long way in moving your finances in the right direction. Ask lenders for a better interest rate most credit card companies will lower your rate by simply asking nicely. If they say no, let them know you found a better rate and you will be transferring your balance to a new company.

8 You can also check with your bank to see if the offer interest rate discounts for things like having your paycheck directly deposited into their bank or setting up direct payment on the loans. Banks also determine your interest rate based on your credit, the better your credit the less interest you will be charged. If your credit score has improved quite a bit since the date you initially took out the loan, another option is to refinance the loan to get that lower rate. ELIMINATE RECURRING PAYMENTS Review your bank statement for recurring subscription services or memberships that you no longer use or don t use enough to validate the monthly charge. I ll bet everyone reading this must have at least one recurring charge that you forgot about, you are so used to having the money withdrawn from your account you don t even give it a second thought. Maybe you are paying for a gym membership but only find time every few weeks to take advantage of it. Cancel the membership if you are not getting the full value for the money you are paying. What about streaming services? Do you really need Netflix, Hulu and Amazon Prime, not to mention also paying for Cable or Dish services. Who has the kind of time to use all these services and get your money's worth from all of them. Pick a favorite (or two if you must) and drop the rest. REVIEW YOUR INSURANCE POLICIES You should review all your insurance policies at least once a year to make sure that you are paying the lowest possible price for the coverage you need to protect yourself, your family and your finances.

9 Review your policies to see if you are paying for coverage you no longer need or increase coverage in other areas. You also should compare the rates you are paying your current insurance provider with other companies to make sure you are getting the lowest possible rate. You can compare insurance rates from hundreds of companies very easily and in a short amount of time through online price comparison websites. REMOVE FEES If you get hit with a bank or other fee you don t feel that you should be charged, speak up. Call you bank or provider to correct the error and nicely ask that it be removed from your account. You can still ask for a fee to be removed even if it is legitimate. Maybe you got hit with an overdraft fee because your payment was posted a day prior to your check being deposited or you got hit with a late fee because the check you mailed arrive one day after the due date. These are minor oversights so you shouldn t have a problem getting them removed, especially if it s a rare occurrence. On the other hand, if you are three months late on making a payment or if you are hit with overdraft charges every now and again, you are probably wasting your time here. OPEN BILLS IMMEDIATELY The worst thing you can do is ignore your situation when you are struggling financially. I know, it is much easier, but ignoring it is not going to make it go away. The only way it ll go away is if you take the bull by the horns, face it head on and put in the work to fix it.

10 One way to do this is to open all your bills right away, make note of the amount and due date. Also review them for any errors, it is much easier to get errors taken care of right away then three months down the road when you finally review your account, or even worse, end up paying for the error without even realizing it. Opening your bills right away and knowing where you stand will also impact your spending. You are less likely to splurge on wants if you know it ll impact your financial goals. PLAN YOUR PURCHASES Plan your purchases at home prior to going shopping. Making a plan will help you save money, stick to your budget and control impulse purchases. It doesn t matter if you are just going on your regular weekly grocery trip or you are in need of a new major appliance. Plan ahead by either making a list of what you are in need of and stick to your list; or if it is a major purchase, do you research, comparison shop online for the best price and know what you are going to purchase prior to heading out to the stores. SHARE YOUR GOALS Share your goals with family and friends, or even on social media, if you are comfortable doing so. You don t need to share all the details of your finances but letting people know your goals will hold you more accountable in following through with what you said you were going to do. It ll also give people a chance to support you and maybe they will share some helpful advice or words of encouragement.

11 PAY OFF LOANS FASTER Make bi-weekly payments on your car loan, mortgage or any other debt to pay off the loan faster and save on interest. By submit half your loan payment every two week you will be making 13 payments per year and you will also accumulate less interest you pay on the loan. Before setting this up there are two thing your need to check with your bank with to make sure you actually saving money. One, make sure that you bank allows for early payment without penalty and two, make sure that interest is compounded daily, which is usually the case. BUNDLE YOUR SERVICES Consider bundling certain service together such as your phone, internet and cable services or your vehicle and homeowners insurance. Many companies reward loyal customers who utilize multiple services that they provide by giving you a lower rate or giving you multi policy discounts. Review prices yearly, some companies will give you an introductory price or discount to get you business then increase the price after a certain period of time. If they do raise your rates, call them up and ask that it be lowered back to the original pricing. I ve done this more than once without any issues. RAISE YOUR INTEREST RATE If you have money sitting in a savings account at your local bank, you should shop around to get the most out of that money. Not all banks offer the same interest rate in fact it can vary quite a bit from one financial institution to another, it s

worth taking a bit of time to shop around for the best rates. Do a little online research at site such as bankrate.

FDIC insured, your money will be as safe as it is at your local financial institution.

Implement a handful of these tips whenever you can and you re going to start seeing results, not only in your bank account

12 worth taking a bit of time to shop around for the best rates. Do a little online research at site such as bankrate.com Don t dismiss online banks, often times they will have better rates than brick and mortar banks and as long as they are FDIC insured, your money will be as safe as it is at your local financial institution. Final Words Getting your finances up to snuff doesn t have to consume all of you time and energy. Implement a handful of these tips whenever you can and you re going to start seeing results, not only in your bank account but also in the way you think and approach money decisions every day. Please send me an to lisa@moneymindedmom.com if you have any tips you would like to share, I would love to hear them!!

However, it is possible to live without a paycheck for an extended period of time but only if you plan for it.

However, it is possible to live without a paycheck for an extended period of time but only if you plan for it. LIVING FROM PAYCHECK TO NO CHECK Smart Financial Planning Can Help You Get Through the Transitions ENGLEWOOD, COLORADO Have you ever spent a Friday afternoon daydreaming about quitting your steady full-time