Smart Personal Finance Moves to Make Now

No matter if you just came out of college or have been set in your career and handling the household finances on your own for a while, it is never too late to learn and make adjustments that will benefit your future.  Handling the household finances is a tough job and shouldn’t be handled alone.  Whether you have a significant other, or a family member or friend that you trust, you should always bounce ideas off someone to ensure you are setting yourself up for success for the future.  After all, this is your nest egg we are talking about.

Set Up an Emergency Fund

You may think you’re on top of your finances now, but what if a huge unexpected charge hits, how would you pay for it?  Even worse, what if you lost your job and it took you a few months to find a new one?  Experts suggest that you keep a few months’ worth of expenses in an account for easy access.  Any more than that and it would be a waste sitting there, as it could be growing in a brokerage account or retirement account at a better rate.

Pay Off Debt

Debt is never a good thing.  Using a credit card is by no means a negative, as you can acquire some great rewards on your normal purchases, but if you charge too much and you can’t pay the entire statement balance by the due date then you get into a situation where you start paying interest and depending on the balance, can only get worse and can take years to get out.  If you currently have a credit card balance you should start to make the largest payment each month that you can afford so you can rid that burden.

Boost Credit Score

Credit score is the best impression you can leave on a lender and will ultimately decide your approval, so it’s best to strive for the highest score that you can.  The higher the credit score you have, the better the interest rate and terms that you can get on the market, whether it is for a credit card, mortgage, or loan, and the lower the interest rate the less you pay each month.  By making regular on-time payments, having no debt, and not applying for multiple applications, you can see your score continue to rise each month.

Save, Save, Save

The more money you can free up each month by reducing expenses, can ultimately go towards the greatest financial goal that you can strive to reach, which is being able to retire and live off of your savings.  That’s why it’s important to start saving the earlier the better so that money has a charge to grow over time.  The time to retirement will go quick, so if you are not currently maximizing your 401(k) accounts, now is the time, especially if you receive company matching benefits, which by not taking advantage of you are only leaving free money on the table and shorting yourself for the future.

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