Smart Money Tips

Simply setting spending limits in a variety of budget categories doesn’t really give you the complete picture. There are likely categories where you may be needing to cut back, trim or reallocate but you won’t know that’s the case unless you track your expenses.

Saving as a family starts with setting a goal and making a plan to reach it. Saving just for the sake of saving isn’t very motivating. Saving for a purpose, like a trip to the ice cream shop, can get kids of all ages interested and committed to the process!

Plan now to use your tax return to your benefit. Pay down existing debt, build up your emergency fund, fund your IRA, start a vacation savings account, make home improvements, donate to a local charity, support a local small business.

We often fall into the trap of thinking if we just made more money our money problems would go away. In reality, knowing your money personality makes the biggest difference when it comes to dealing with and improving money issues.

Whether you’re preparing to file your own taxes or paying a professional, being ahead of the curve and gathering all necessary documents now will help you avoid the last-minute scramble.

Did your family status change recently? Even if not, have you taken a moment to review your current beneficiaries? It’s a good idea especially whenever you experience a life change such as marriage, birth, adoption, death, or divorce.

Having a MySocialSecurity account at ssa.gov makes it convenient to check your social security statements, change your address, request a replacement card, and manage your benefits online.

Knowledge is power. You are more powerful than your circumstances! Even the most basic personal finance principles can be forgotten.

Do you have a savings wish list? Can you think of things you wish you had saved money for? Whether it’s emergency savings, retirement savings, vacation savings, etc. Plan now to use your tax return to increase your savings.

Start the year off with a financial check-up! You’re probably familiar with a physical check-up at a doctor’s office. This is similar only you’re not at a doctor’s office. 

Taking an audit of your recurring charges and current subscriptions can help you see where you might be leaking unexpected cash. If you’re looking for a little extra to throw at debt payments each month, this is a great place to start.

Car insurance can be one of your biggest monthly expenses. I’ve found you can usually save on auto insurance by doing one of two things: changing your coverage level or getting a new policy.

Consider a temporary, part-time job to help you achieve your financial goals much faster. If you’ve decided to get rid of debt or save more money for future expenses, then a part-time job can help you get there quicker. A part-time job could also be a way to break into a career or line of business that could end up meaning a bigger full time paycheck.

A good credit score can improve your chances of getting a loan, renting a house, getting good insurance rates, it also means you’ll qualify for better interest rates on a mortgage, saving you thousands over the life of the loan. So how do we improve our credit score? Some of the factors are pretty obvious: pay your bills on time, consistently, over the long-run. Other factors aren’t so obvious.

Mark your calendar for Dec, 31. That’s the last day before Uncle Sam starts collecting federal student loan payments (and charging interest) again. If you or a loved-one have federal student loans, make the most of the next month.

Let’s talk spending on household goods, groceries, and clothes. This type of spending can vary greatly from month to month depending on the types of products you buy and strategies you use to plan. Simple strategies of list making and using coupons can help you stick to your budget.

It’s wise to get your interest rates as low as possible, reducing the amount you ultimately end up paying. Mortgage and credit card debt are common places to start. Mortgage rates can be reduced by refinancing. Credit card rates can be reduced simply by calling and asking for a lower rate.

Talking about making a will is a lot like talking about life insurance. It’s necessary, but it might make you uncomfortable. A will is important if you have minor children because it designates where your children will go in the event of you and your spouse’s deaths. A will is also important because it dictates how your assets are divided up among your family when you die.

Whether you have a 401K at work or not, you can contribute to a Roth IRA each year as long as you meet the income limits. The Roth IRA is great because it allows you to contribute after tax dollars and allows those contributions to grow tax free. If you think your tax rate will be higher in retirement, this is a smart move.

We all have expected expenses that vary from month to month. Groceries, household goods, clothes, dining out, entertainment, etc. What I do when I feel like I’m spending too much in these categories is create a simple, selective budget to get this spending back under control.

One of the fastest ways to improve your financial situation is to review your list of expenses and look for ways you can eliminate and reduce. This process isn’t about becoming a scrooge, it’s about spending wisely and within your means so you can achieve financial goals faster.

Having your financial records organized and in one spot brings clarity and allows you to quickly find documents for reference. Properly protecting important documents means you won’t have to start over in the event of a fire or other incident.

If you earn an income and someone else depends on that steady stream of income to survive, then you should probably evaluate your life insurance. Because if you’re gone, your dependents will be left without that income source.

Whether you have joint finances or separate, it’s still important to sit down with your spouse or partner and get on the same page. Similarly, if you’re single, you don’t have a default accountability buddy to discuss your money issues with. You must check in with yourself or a trusted friend or family member from time to time.

Let’s talk goal-setting. I think written, SMART goals are the way to go versus the more arbitrary goals like “save more” and “have less debt”.

Proper money management is a language you never stop learning. It’s important to regularly consume information to keep you motivated and intentional.

Knowing your assets will allow you to calculate your personal net worth (assets minus liabilities). It will also give you a sense of what you need to insure, secure, or include in your last will and testament.

Whether it’s debt on a credit card, a car loan, student loans, or your mortgage, making an efficient plan to tackle debt doesn’t happen on it’s own. It takes self-discipline and a game plan!

No matter the income level, financial success comes from consistently living below one’s means. A review of your monthly expenses will give you a sense of part of the "big picture." It will also give you the information needed to create an emergency fund, a simple budget, and automate your bill paying.

It’s not uncommon for your credit reports to contain errors, and these issues can pop up at any time. So it’s a good idea to review your credit reports at least annually, of only for this purpose.