15 Steps To Better Finances

Financially, times have been tough for all of us. Organizing your budget and giving your finances a good spring cleaning could be very helpful right about now. Below are fifteen tips for getting started. First, we will tackle your debt situation, or dig up some additional cash, then we will figure out ways to utilize that new found money.
1. Check your credit card interest rates. Even if you pay off your credit card bills each month, it is a good idea to double check your rates in the case that you hit a rough financial patch and have to delay paying your cards in full for a couple of months. Many credit card companies raised their rates in the last year, but as a result, they did lose a lot of customers. A few of these companies are trying to win customers with a good history back, so you can find a good bargain out there with the help of internet search tools like bankrate.com.


2. Set up autopay on your debts. This is something you want to get on right away. Just one late payment can hit your credit tremendously, and you could end up seeing your interest rates shoot sky high. Even though the new credit card law puts more controls on credit card companies, they can raise your rates for at least six months when you pay late. Additionally, you have the capacity to even earn points if you pay your bills on a credit card with reward points. If you are not allowed to use credit to pay some of your debts, set up an autopay utilizing online banking. That way, you will never have to worry about a late payment.

3. Check your reward cards. Many credit card companies reduced their reward benefits before the new credit card bill took effect, but some have introduced cards with better rewards as they look for the best customers. So if you do have good credit, take advantage of it and compare your rewards with the new cards on the market.

4. Review your cable deal. Cable companies are constantly running new deals that introduce new channels or internet services. Go to their website and check out the deals that are available now. You might be able to get a better one!

5. Review your wireless bill. Look over your wireless usage and be sure that you have a plan that meets your needs. Can you lower the amount of minutes you use, resulting in a lower bill? Or should you buy extra time instead of letting those extra minutes rack up?

6. Check the deal on your home phone. Nowadays, more and more telephone companies offer unlimited long distance. Also, many offer package deals that include wireless and cable. Figure out which one is the best considering how much you use wireless, landline and cable services.

7. Look over your home and car insurance policies. With home prices plummeting, you might be able to save some cash by lowering your insurance to match the current value of your home. You might also be able to lower costs by increasing deductibles.


8. Shop for new home and auto policies. After you look over your policies, take a while to shop for new policies. You might discover that you can save money by switching insurers. Check with Insurance.com begin your search.

9. Spend your gift cards. Don’t let them just expire because you forgot about them! Use them to buy items you may need right away. If they hang out in your wallet too long, you could even end up losing them. Look at it this way: if you don’t spend the money, consider it a gift to the store or credit card company from which it was bought.

10. Check your credit reports. For free, once a year by using annualcreditreport.com. It is much easier to fix a problem the sooner you catch it. Also, it will help you to be vigilant on your watch for identity theft.

11. Fix any credit problems. If you do find any errors, or questionable accounts in your credit report, work on it immediately. You will receive instructions that explain how to question errors on your report when you receive your copy.

12. Increase your retirement savings. Now that you have a little more money, increase your automatic savings into your retirement account! An increase as small as 1% a year can really make a difference.

13. Review your investments. Look into them, see how they are doing and see how your investments add up.
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14. Rebalance your investments. Make sure you have the right percentage invested in stocks or stock mutual funds, bond mutual funds, or bonds and cash.

15. Set up an appointment with a financial planner. It is a good idea to sit down with a financial planner once a year to look over what you are doing with your money, set achievable goals and make sure that your money is in the right spots so you have the opportunity to meet those goals. Seek out a planner who is fee based rather than commission based. When a planner receives money based on commission, you may be getting advice that helps the planner earn more money, not you.

Looking through and organizing your finances this year is a lot more important as we bounce back from one of the worst downturns this country has ever experienced. While it is a good idea to look over your finances every year, it is crucial to review them now.