Contribute to your 401(k) plan (k). Make certain that you contribute enough to your 401(k) to be eligible for the maximum matching funds. Don't pass up this free money because your employer is willing to give it to you.
Open as well as IRA. Open an IRA if you own your own business or work for a company that does not offer a retirement plan. Opening this type of retirement plan can result in significant tax benefits. If you're not sure which IRA is best for you, you can look up """"Types of Retirement Plans"""" on irs.gov.
Check the interest rates on your credit cards. The interest rates on your credit cards can have an effect on your balances and can add up over time. If your interest rate is driving up your credit card balances, it's time to shop around for a lower rate. Mortgage loans, auto loans, and even your checking and savings accounts are all options for rate checks. Pay off the balance that is costing you the high interest for a genuine sense of accomplishment. Divide the amount owed by 7 and pay that amount every month until your balance is zero by the end of the year. Can't handle that much every month? Transfer the balance to another card with an introductory rate and pay it off before the promotion expires. Make certain that there are no high transfer fees.
Set up a savings account. When opening your savings account, follow these three steps:
1. Establish a financial goal and a timetable.
2. Determine how much money you will save each month to help you reach your goal.
3. Set up automatic transfers from your checking account to your savings plan. This way, the transfer is completed for you and you will not lose the money.
Examine your credit report. Make certain that your credit reports are error-free. Remember that you are entitled to one free credit report from each of the three major credit bureaus each year. Annualcreditreport.com provides one free of charge.
Sort through and recycle old financial documents. Sort through all of your bank statements, invoices, bills, and other financial records and keep only what is absolutely necessary. Keep your tax returns, canceled checks, receipts, and any supporting documentation for at least six years. Make certain that you do not simply throw away important documents without first shredding them. You don't want an identity thief to pick them up.
Configure automatic bill payment. Spring cleaning isn't just about getting rid of clutter. It's all about making your financial life run more smoothly. Set up automatic bill pay and link it to your checking account to eliminate the possibility of missing a payment and incurring late fees.
Examine your budget. Examine your current budget and determine whether any changes are required.
Pay off as much debt as you can. Spring is an excellent time to review your outstanding debts and determine which loans or credit cards you can pay off. Create a more stringent payment plan if nothing else. Paying off your outstanding debts as soon as possible will put you in a much better financial position for the rest of the year.
Keep track of your financial passwords and keep all of your records in a safe place. Check to see if you're using the same password for all of your financial accounts. Protect your identity by storing your passwords and other financial documents in a secure online vault.
Be a good steward of your community. Make an effort to make a difference in your community. Giving of yourself to others will make you feel much wealthier, believe it or not."""
