THE BROKEN WALLET

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8 tiny ways to improve your finances in 2023!!

Each decision we make regarding money can have either a positive or negative effect on our bottomline. The bad news is that we might take a few wrong “financial” turns in life. The good news, though, is that it’s possible to get on the right path — it all starts with baby steps. 

1. Review your credit report

It’s important to review your credit report annually — and getting your copies is easier than you might think. 

The three major credit bureaus — Experian, TransUnion, and Equifax — give each consumer one free credit report every 12 months. You can monitor any changes to your credit accounts, check for inaccuracies, and see where you stand credit-wise. 

As a sidetone, checking your own credit doesn’t hurt your score. You can get your free copies from AnnualCreditReport.com.

2. Set a monthly savings goal (no matter how little)

Each month, set aside a specific amount for savings. Growing an emergency fund can seem like a daunting task, especially if you don’t have a lot of extra money. However, a savings account is important to any financial plan – and it’s your best weapon against debt. 

Even if you’re only able to save a little, make it a priority. Every little bit counts and it adds up quickly.

3. Double your credit card payments (at least)

Paying only the minimum means you’re paying interest each month. Depending on how much you owe, you might spend hundreds over the life of the balance. However, if you double your credit card payments (at least), you might pay down your balance faster and save money on interest. 

Plus, higher payments don’t only decrease your balance. They can also improve your credit utilization ratio. This is the percent of available credit in use compared to your credit limit. A lower ratio is key to raising your credit score. 

4. Increase your retirement contribution by 1%

Even if you can’t save a lot for retirement, increasing your contribution by 1% can make a big difference. 

Small increases from time-to-time are less likely to cause financial strain – yet you’ll benefit in the long run. Aim to increase your contribution each year or when you receive a pay raise.

5. Review your life insurance policy

Don’t forget to periodically review your life insurance policy – your insurance needs can change over the years. There’s no hard or fast rule regarding how much coverage to obtain. As a guideline, though, you might get a policy that’s 8 to 10 times your annual income — especially when others rely on your income for support. 

To determine the appropriate amount of coverage, consider all your debts. Life insurance policies should cover your funeral, burial, and pay off personal debts. Consider financial responsibilities too.

Are you a caregiver? Do you have children? Are you the sole provider of a household?

Having enough coverage is crucial after a tragedy. This can remove a huge financial burden and provide peace of mind.

6. Read one personal finance article (each day)

Financial literacy provides the skills and knowledge to understand money and manage it correctly. 

Reading one personal finance article each day can equip you to handle money responsibly. Remember, there’s always something new to learn. Articles and blog posts can help with budgeting, saving, investing and other aspects of managing money.

Personal education can also help you devise your own financial plan. You’ll learn what works and what might not work based on your circumstances.

7. Cancel a subscription service

Subscription services are usually paid monthly through direct debits. And while some of these services are inexpensive, the cost adds up over the years.

According to one report, “the average U.S. households spends about $200 a month on subscriptions.” Regardless of where you fall there might be room for improvement. Therefore, conduct a subscription audit from time-to-time and cancel those you don’t use as often.

Here’s a tip: Once you cancel a service, continue making those payments to yourself. Auto transfer the same dollar amount into your savings account each month

8. Open a high-yield savings account

I always recommend online high-yield savings accounts because some of these have interest rates up to 25x times higher than traditional savings accounts. 

Your money can grow faster, and since many high-yield savings accounts don’t come with an ATM card, you’ll make fewer needless withdrawals. 

There are many options to choose from such as CIT Bank’s Savings Connect. As of January 2023 these accounts earn an APY of 4.05%. Click here to learn more and open an account.