Weekly Financial Fixes To Turn Into A Habit
Often times when we pay attention to our finances, it is just to stay afloat rather than making constructive actions. Managing your finances is a whole job itself and sometimes we wonder, "where do I even start?".
Simply changing up your weekly routine in the slightest can help better prepare you for the long-run. Trying making these a habit.
Checkup On Your Credit
How long has it been since you have seen your credit score? Probably way too long.
Start by visiting a site online that allows you to pull a free credit report, or do a "soft" inquiry on your account. What stands out? Do you see any dings to your credit? Have your positive habits boosted your credit score?
What factors play into our overall credit score? Your FICO Credit Score is made up of about:
10% of your total accounts. Showing that you can handle a mix of different types of credit is a positive indicator.
15% length of credit. Generally, the longer your credit history, the better off you are.
10% Inquiries. Hard inquiries are done by lenders on credit seeking activity. Inquiries can be a good indicator of credit seeking, but limiting the amount of inquiries in a short period of time can help you boost your score.
30% revolving utilization. How much do you owe on your accounts?
35% missed payments. Paying your statements on time is the number one factor in determining your credit score.
Making sure that you practice positive habits to boost your credit score will help you long-term as well as when you need financial assistance from a lender.
Audit Your Credit Cards
Check the balance of your cards. Have you used over 30% of your credit limit? Using more than 30% of your limit damages your credit score and continues to make it worse the more that you use up.
Make a plan for paying off your credit card debt and aim to not rack up more than a necessary balance. Shopping sprees and unneeded items tend to greatly increase credit card debt.
Cut Down On Costs and Ditch The Subscriptions
Ditch Netflix? No way. Yeah, I wouldn't either.
Rather, consider switching to a less expensive cell phone plan or get rid of the extra music subscription that you are not using. You would be surprised the costs that rack up due to monthly subscriptions.
Instead, use this money to put away in your savings for retirement, a down-payment, etc.
Create A Monthly Budget
A firm monthly budget can assist you in putting money away for that rainy day. Make your savings account a priority every paycheck. You can even schedule a portion of your paycheck to automatically be deposited into your savings every pay period.
The mistake that most Americans make is putting their savings account at the bottom of their list. Consider your savings account as another bill. You wouldn't want to miss that bill payment.
Set Up A Retirement Fund
Invest in yourself now so you can live to the fullest later. If your employer has a 401K, take advantage of it. Invest as much into it as you can. If not, consider setting up a Roth IRA account, or a similar investing fund.
Consider investments such as rental properties or stocks. Anything can that help you build equity in the long run will better prepare you for early retirement. Whatever you decide to invest your money into, make sure that it will produce an adequate return.
These tips do not have to be evaluated every day of the week, however, incorporating these steps into your weekly or monthly habits will make you more knowledgable of where you sit financially and where you can improve.
What will be the best move for your financial growth? Sit down and start crunching the numbers and take a leap into your investments!