Source: https://var/www.wisebread.com/16-small-steps-you-can-take-now-to-improve-your-finances
We all have big dreams when it comes to money. “One day, I’ll afford that car or that dream vacation” – but how many of us actually take the steps to strategically make that happen? It’s never too late to change your habits, and luckily for us, WiseBread breaks down a few small things to improve your financial health:
Create a Household Budget
Ok, this one sounds obvious; but you should calculate exactly how much money you bring in each month. Establish that number, then organize your financial priorities such as essential living expenses, debt, savings, and lifestyle costs. Sometimes writing the numbers down is all you need to do to truly understand where you are.
Calculate Your Net Worth
Your net worth is basically “the total of your assets, minus your debts and liabilities.” If your net worth is a positive number, that’s awesome. If this number is negative (which WiseBread points out is common for younger people), you’ll need to continue focusing on paying off your debt.
Review Your Credit Reports
Every 12 months, you’re able to check your credit report for free from each of the three major credit bureaus (Experian, TransUnion, and Equifax) at annualcreditreport.com. WiseBread recommends requesting a report from each bureau every four months so you can keep a solid eye on the progression.
Check Your Credit Score
“Your FICO score can range from 300-850,” as WiseBread points out. The higher the score, the better you’re doing. Factors that go into your credit score are payment history, how much debt you’re carrying, your type of debts, and how much available credit you usually have.
Set a Monthly Savings Amount
Don’t wait until you’ve paid for everything you need to put savings away. Put a monthly amount away at the beginning of every month, and stick with it.
Make Minimum Payments on All Debts
Never make late payments – that’s a big “no-no.” Build your payments into your budget and make sure you meet them before each deadline.
Review Your Employer Benefits
Make sure you’re taking full advantage of what your employer is providing.
Set One Financial Goal to Achieve it By the End of the Year
Recognize where you need to focus your energy financially. Most of us have more than one financial goal, but we don’t know which one to focus on; therefore, we never end up meeting them because it just causes a ton of stress. Avoid overwhelm by picking one to focus on and achieve by the end of the year.
Interested in learning more about alternative ways to improve your finances? We can help at 713-493-7528 or info@upplanningedge.com.
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