5 Smart Money Moves
Want to get smart about your money, but not sure where to start? These five tasks will increase your financial IQ.
1. Establish an emergency fund. Start building a savings account with enough to cover three to six months of expenses. This will cover you in the case of a job loss, medical emergency, or natural disaster.
2. Open a high-yield savings account. Put your emergency fund into a high-yield savings account, where it could earn five percent or more in interest. Consider this: let’s say you have $10,000 in a regular savings account with an interest rate of 0.20 percent. After twelve months you would have earned $20 in interest. In a high-yield savings account with an interest rate of 5.00 percent, that same $10,000 would have earned you $500.
3. Create a budget. It seems so simple, but many of us are flying blind when it comes to how much we spend and on what. Start by tracking your spending for two months, then build a budget based on your expenses. You may be surprised at how quickly that daily latte adds up.
4. Enroll in a 401(k) or IRA. Start saving for retirement now. If your employer offers a 401(k), your contribution is deducted from your paycheck before taxes are taken out. If your employer matches any of your contribution, it’s another form of compensation that you’d be foolish to give up. If you are self-employed, establish an IRA and contribute a portion of your income.
5. Know your credit score. This is useful for a lot of reasons. For one thing, you can keep an eye on what’s being reported on your credit and gives you an opportunity to correct any errors. It also lets you keep an eye out for fraud or identity theft. It’s worth paying for the FICO score – the number creditors use to determine your credit worthiness. Anything above 760 is considered excellent; 700 to 760 is considered good. Below 620 will require some credit repair to avoid high interest rates.
Get Started Now!
- Check Your Credit Report & Credit Score now!
- Start a Loan Request
- Sign up for our News Feeds
- Have Questions? Call 1-800-GET-SMART (1-800-438-7627)
