Becoming better at managing your finances can feel like an overwhelming goal. That’s why it’s a good idea to break down an effort like this into smaller, more manageable pieces. Here are some things you can do when you have just a few minutes of time that can put you on the path to better finances.
Monitor Your Credit Score
How much credit you have, and how well you use it, says a lot to your potential lenders about how much of a risk they’ll be taking if they offer you a loan or a charge card. Taking just a few minutes once a month to check your free credit score can give you a clear picture of your creditworthiness; if your score isn’t as high as you’d like it to be, you can work on ways to boost it.
Plan Your Payments
When you don’t pay your bills before they’re due you may incur late fees, and over time those tardy payments may do significant damage to your credit score. That’s why it’s a good idea to sit down for 15 minutes in order to create monthly calendar reminders for your due dates or, even better, to set up automatic payments through your bank account. You can even take it a step further and contact your creditors and utility providers to request specific due dates. That way you can be confident that you’ll always have funds on hand when those scheduled monthly payments are debited from your account.
Recalibrate Your Budget
If you’re one of the smart folks who has drafted a budget to live by, then you’ve already taken a major step toward staying on top of your finances. However, it’s important to remember that most budgets could use a review from time to time. Perhaps you’ve gotten a raise, or you’ve added in a new monthly expense that needs to be covered. When you’ve got a bit of time on your hands, pull out your most recent paystub and bills and recalibrate your budget so it reflects your current income and expenses. You may be fortunate enough to identify some extra funds that you can put aside for retirement or a major purchase that you wouldn’t have been aware of without a budget review.
Open a Retirement Account
Participating in your work’s 401(k) retirement program is probably a no-brainer, particularly if your company makes matching contributions to the fund. It’s one of the easiest ways to build for your future with little effort on your part. To be sure you’re doing everything you can to build your nest egg, take a few minutes to open an ancillary account, such as a Roth IRA. Most people can contribute up to a fixed amount to this fund each year, and the withdrawals will be tax-free when you reach retirement age.
Schedule a Money Meeting
If you share even a portion of financial responsibility with a partner, it’s important to check in with him or her regarding money management. Spending just a little bit of time once a month reviewing your budget and your current financial situation can go a long way toward reducing the stress that couples often experience when it comes to money matters. Communicating regularly about money can help ensure you are working as effectively as possible toward reaching your shared financial goals.
If your goal is to improve your money management, it needn’t take a lot of time or effort. If you’ve got just a few minutes on your hands, tackle one or more of these simple tasks to get a firmer grasp on your finances.
