You can improve your finances even if you don’t have a lot of extra time or money. In fact, the busier you are the more important it is to get your finances in order. You won’t need to clear you schedule to do this. Some of these ideas are ones you can do while you wait for your kid at practice or on your lunch break. Sound good? Here are some tips you can implement today that will help improve your finances in less than an hour.
Check Yourself
Do you know your credit score? I watch mine like Gollum protects the precious. While you don’t need to go that far it is really important for everyone to take a look. Most large purchases will require financing. It is difficult to pay for a car or home with cash. Your credit score is used to determine if lenders think you are a good risk or a bad risk when you apply for a loan. Some employers check this too so even if you don’t use credit it is important to know.
If your credit score is good or excellent (700+) you will get the best interest rates available. If it is lower you will be charged higher interest rates for the same amount of money. This is something you can improve once you know where you stand today.
While it will take more time to improve your credit score if it is poor or average knowing what it is will get you started. There are services that provide your scores for free like Credit Karmaor you are entitled to a free credit report annually according to Federal law. Remember, if you aren’t paying for a product you are the product. Sites that provide the scores for free on a more frequent basis will advertise on the site with financial products that they feel will benefit you based on your information. I don’t mind this because it lets me check mine whenever I want without paying.
Put Your Bills on Autopilot
Ever get so busy that you miss a payment on your bills or credit card? This happened to me when I was on maternity leave. I didn’t know what day of the week it was let alone when my bills came in. Newborns that sleep strange hours can do a number on the most organized person’s schedule. My credit card payment was not delivered on it’s due date.
Due to this oversight the company moved me to the “default” interest rate that was over 20 percent and hit me with a late fee. Luckily I got an email notification about it so I acted quickly. Taking 5 minutes to call the credit card company got my interest rate moved back down the previous rate. By explaining my situation and enrolling in auto-pay I saved money and time.
If you know when you get paid it makes sense to put all of your bills on automatic payment. The average adult makes over 35,000 decisions a day. Having my bills on auto-pilot takes those decisions off of my plate and allows me to focus on other things.
If you don’t get paid every two weeks and have irregular income set a reminder in your phone to check your bills and due dates. This will keep you from missing something. You can also set notifications through most lenders if getting an email or text will keep you from being late.
Unsubscribe
The first thing I did when I started my year long shopping banwas unsubscribe to every store email that I was getting. There were over 100 by the time I was done. Next time you get one take my advice and hit unsubscribe. Go shopping when you need something and not because a retailer told you to. If you miss a sale you will survive.
Ever look at something that has had tags on it for a year and wonder “why did I buy this”? It was probably a deal – but that money would have been better off staying in your bank account.
Don’t panic – if you are in a store and see something you want it is very easy to find available deals by quickly going to a website likeRetail Me Notand finding a coupon. I don’t think it is worth paying full price for anything. However if deals are in your face 24/7 you will spend money on things you don’t need because they are on sale.
These are just a few of my favorite quick ways to improve your finances. Do you have other quick tips that might help readers make improvements on the fly? I would love to hear your thoughts in the comments.
FAQs
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
What is the 50 30 20 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
How can I get financially stable fast? ›
5 Ways to Achieve Financial Security
- Start living on less than you make. No matter where you are on the road to financial security, your paycheck is the vehicle that's going to help you get there. ...
- Kiss your credit cards goodbye. ...
- Pay off your debt. ...
- Build up an emergency fund. ...
- Invest 15% of your income.
The 'One Hour Savings Rule' Explained
The goal is to pay yourself first by saving one hour of your earned wages daily. While you may have heard of paying yourself first by setting funds aside from every paycheck, the goal here is to pay yourself first from the first hour of earned income in a day.
What can I do to improve my finance? ›
7 Money Management Tips to Improve Your Finances
- Track your spending to improve your finances. ...
- Create a realistic monthly budget. ...
- Build up your savings—even if it takes time. ...
- Pay your bills on time every month. ...
- Cut back on recurring charges. ...
- Save up cash to afford big purchases. ...
- Start an investment strategy.
Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.
How to budget $5000 a month? ›
Consider an individual who takes home $5,000 a month. Applying the 50/30/20 rule would give them a monthly budget of: 50% for mandatory expenses = $2,500. 20% to savings and debt repayment = $1,000.
How do I stop struggling financially? ›
In this article:
- Identify the problem.
- Make a budget to help you resolve your financial problems.
- Lower your expenses.
- Pay in cash.
- Stop taking on debt to avoid aggravating your financial problems.
- Avoid buying new.
- Meet with your advisor to discuss your financial problems.
- Increase your income.
7 steps to financial stability
- Invest in yourself. Having further education, more knowledge, and required skills for work can support your career advancement. ...
- Make money from what you like. ...
- Set saving and expense budgets. ...
- Spend wisely. ...
- Set emergency fund. ...
- Pay off debts. ...
- Plan for retirement.
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
The “rule of 72” is calculated by dividing 72 by an annual compound interest rate to arrive at the amount of time it takes to double your money.
What is the 24 hour money rule? ›
What's the 24-Hour Rule? The 24-hour rule is where you give yourself a full day to consider whether you want to make a purchase. Singh gives an example of going to the mall and seeing a sweater for $70. While you might impulsively want to buy it, the 24-hour rule would mean you go home and give yourself some time.
How much if you save a dollar a day? ›
The answer to that question depends on interest rates or rates of return. With no interest involved, putting one dollar a day into a bank account (or a jar at home) will see you end up with $365 in a year. Multiply that amount by 30 years and you'll end up with $10,950. Now let's factor in an interest rate of just 1%.
How to be financially smarter? ›
7 financial habits to help make you smarter with your money
- Automate whatever you can. Automate your savings, automate your loan repayments, automate your bills. ...
- Have specific, meaningful goals. ...
- Invest. ...
- Don't spend that unexpected cash. ...
- Prioritise high interest debt. ...
- Track your spending. ...
- Learn however you can.
12 ways to boost your financial IQ
- Identify your money stressors. ...
- Sit down and make your budget. ...
- Manage your debt. ...
- Create a savings plan. ...
- Spend wisely. ...
- Build your credit and track your credit score. ...
- Get the most out of your work benefits. ...
- Look into retirement plans.
Our 50/30/20 calculator divides your take-home income into suggested spending in three categories: 50% of net pay for needs, 30% for wants and 20% for savings and debt repayment. Find out how this budgeting approach applies to your money. Monthly after-tax income.
Is the 50 30 20 rule outdated? ›
However, the key difference is it moves 10% from the "savings" bucket to the "needs" bucket. "People may be unable to use the 50/30/20 budget right now because their needs are more than 50% of their income," Kendall Meade, a certified financial planner at SoFi, said in an email.
What is the disadvantage of the 50 30 20 rule? ›
It may not work for everyone. Depending on your income and expenses, the 50/30/20 rule may not be realistic for your individual financial situation. You may need to allocate a higher percentage to necessities or a lower percentage to wants in order to make ends meet. It doesn't account for irregular expenses.
When should you not use the 50 30 20 rule? ›
The 50/30/20 has worked for some people — especially in past years when the cost of living was lower — but it's especially unfeasible for low-income Americans and people who live in expensive cities like San Francisco or New York. There, it's next to impossible to find a rent or mortgage at half your take-home salary.
