Money management is an ongoing process. It's easier to manage your finances if you break the tasks into smaller pieces. Here are 12 tips, one for each month of 2021, to help you stay on top of your personal finances.
The start of a new year is a great time to set
new financial goals. Use the SMART acronym
to help you succeed. Write down your goal as it applies to each heading. Here's
how it works:
Filing your taxes as early as possible decreases
the chances of fraudsters filing phony returns in your name. Make filing your
taxes early a priority to avoid tax
identity theft.
Decide what to
do with your tax refund in advance to help you get the most out of it.
Think about how you can use the refund to achieve financial goals. It could go
into your emergency fund or toward paying down debt. Maybe a portion could go
toward a vacation or a household renovation project. Apply it toward tuition or
job training. The important thing is to have a plan in place before you get a
refund.
Check your credit reports and credit scores
closely for errors, and if you find something you question, report it. The
sooner you find and dispute challenge errors,
the easier it is to get the problem solved. Use annualcreditreport.com to
obtain free copies of all three of your credit reports. You might also consider
signing up for a free
credit monitoring service to help you keep track of your goals
and to monitor your credit reports.
If you have a negative credit history, you may
want to consider professional
credit repair. Negative credit results from late payments,
collections, repossession, tax liens, charge-offs, foreclosure, judgements or
bankruptcy. They all show up on your credit report and can seriously damage
your credit and your personal finances. Credit repair services help you with
your credit by challenging negative accounts and possibly even getting them
removed from your credit reports altogether. Though they usually charge a
monthly fee, these services can be more effective at achieving results than you
are on your own.
The more you understand personal finances, the
better you'll be at managing them. Books offer ideas and methods for working
toward and achieving your personal financial goals. For paying down debt and
growing an emergency fund, Dave Ramsey's The
Total Money Makeover is a great resource. Or, try David Bach's The Automatic Millionaire for ways to
find money to put in your savings account.
Review bank statements and account details on
your bank's website to see if you're getting the best service for the lowest
fees possible. You might save money by opting out of overdraft coverage or by
downloading your bank's ATM locator app to your phone. Consider switching banks
or adding an
account at your local credit union. Use online tools to compare
fees, rates and services of national, online and local banks. Credit
union locator lets you compare local credit unions and their
membership requirements.
Have you achieved the financial goal set in
January? If not, refocus and get back on track. If so, how can you build on
that goal? Can you start a new SMART goal now?
Teach small children about banks by taking them
in to open their own savings account. Have them deposit birthday money and cash
earned from helping around the house. Take them shopping and teach them to
compare prices and sizes and to use coupons so they can spend their money
wisely. Teach your teens about taxes, filling out W-4 forms and using checking
accounts. Show them how tuition rates and college choice affect student debt. Teach
them the basics
about credit.
Make a conscious effort to spend on things that
bring joy and meaning to your life. Think about how you've been spending money
this year. When you spend on things you enjoy, you'll get much more out of your
money. Make a conscious effort to plan your spending for next month.
As a family, make the holidays about doing
instead of getting. Get together and choose fun activities to do. Spend time
with each other instead of spending money on toys that break and electronics
that separate family members instead of bringing them together. Create memories
instead of debt.
Start compiling tax documents so you're ready
to file as soon as your W-2s or 1099s are in. Remember, this is a great way to
avoid identity fraud at tax time.
Make it a habit to think about your money each
month. For more help on repairing your credit, contact CreditRepair.com for a free credit evaluation.
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Article Updated July 27, 2021
