Financial literacy is extremely important, but two-thirds of Americans can’t pass a financial literacy test. Many adults don’t have the savings to cover an emergency, more than a third of United States households have credit card debt, and 33% of Americans have nothing saved for retirement. Becoming financially literate begins with learning what you can about your personal finances and the smart choices you should be making. If you have no idea where to start, here are five simple money moves you can make this week. These easy steps will help set you up for future financial success, so you’ll want to get started right away.
Compare before you buy
Before you buy anything, whether it’s a sweater or an internet plan, you’ll want to compare your options. There are more options available than ever before and buying the first thing you see is a great way to waste money or end up with a subpar item or service. Use a great resource like Moneygains to save money and find great deals. With Moneygains, Northern Ireland residents can compare electricity plans and find the cheapest deal. With a service like this, it’s a good idea to look at your options and find one that best suits your needs and budget. Taking the time to compare before you purchase anything will help you save money and feel confident that you have the best deal.
Set up recurring investments
A majority of American families have some kind of investment, but if you don’t know what you’re doing, it’s hard to see any real money gains. Not every person investing is an expert, though, so it can feel like a challenge to know what to do with your portfolio. Instead of hiring an expensive financial advisor to manage your portfolio, set up recurring investments. A portfolio management tool can calculate great trades for you and you can set up recurring investments to ensure you’re always making a smart money choice. A Canadian Couch Potato portfolio might be perfect for someone who’s looking to make some money but couldn’t tell you the difference between the stock market and the farmers market.
Make a plan to pay off debts
Most adults are burdened by debt. The average American has $38,000 in personal debt, which doesn’t include a mortgage. Paying a monthly credit card or student loan payment can leave you without enough money to spend on housing, food, or even just something fun for yourself. If you have debt start making a plan to pay it off. Create a budget that helps you put more money towards your loans. Take a look at your debt and make a list of loans, sorted by interest rate. You’ll want to pay off the loan with the highest interest rate first. Once you have a plan to pay off your debts, you can focus on becoming debt-free and financially independent.
Cook more and dine out less
Americans dine out almost six times a week and this definitely adds up. To avoid spending money on fast food or restaurants, make a meal plan and grocery list. If you struggle to find the energy to cook on weeknights, try preparing all your meals on Saturday or Sunday so you can just throw something in the oven on a weekday. Reducing the amount you spend on dining out will help you save money and put more cash towards your debt.
Force yourself to wait before buying a fun item
Impulse buying is extremely common and it’s easier than ever to find something you want on the internet and buy it with one click. When you really want something fun, force yourself to wait. Think about the item for a few days and look at your budget. Can you afford to buy this item? Do you really need it? If you’ve spent a few days considering the item and are determined it will be worth the cost, then you can buy. Plus, this time will give you the opportunity to compare prices and find the best purchase.
It’s easier than you might think to make smart money moves. Try one or more of these tips and watch your savings and financial literacy grow.
Mohit Tater 2020-08-10 07:57:51