You know your finances could use some serious TLC, but you’ve been putting it off… and off… and off.
When you finally do sit down to think about it, you immediately become overwhelmed. Which goal do you attack first? You need a budget, a savings plan, a debt-repayment strategy, a better credit score, a plan for retirement and… oh, you’re running away again, aren’t you?
Calm down and come back. To tackle big goals, you have to start small.
Here are a few simple tips you can take today to get your finances under control and start working toward a healthier financial future.
1. Get Help Paying off Your Credit Cards in 1 Move
Are you stuck with credit card debt that you can’t seem to get rid of? It’s like you can never get ahead!
Wouldn’t it be a relief to get free of that? A service called Payoff makes it surprisingly easy to save money by consolidating your credit card debt.
That’s when you borrow money at a low interest rate, then use the loan to pay off the balances on your high-interest credit cards. You’ll save money on interest payments, freeing up cash to pay off your cards faster.
The Payoff Loan is a personal loan of $5,000 to $35,000 to eliminate your credit card balances. You repay the loan with fixed monthly payments over a fixed period of time.
If that sounds complicated, Payoff makes it fast and simple. In just a few minutes, you can see the interest rate you’d get — it won’t affect your credit score.
(Speaking of credit scores, you’ll need a score of at least 640 to qualify. Payoff operates in every U.S. state except Massachusetts, Mississippi, Nebraska, Nevada and West Virginia.)
2. Take 10 Minutes to Protect Your Family's Future
Many of us would rather not think about death — let alone life insurance.
However, securing life insurance is an important financial move, especially if you’re married, have kids or are in your prime earning years. It pays your dependents when you die, which can help pay for your funeral, mortgage or other debt.
So if “get life insurance” has lingered on your to-do list far too long, take the next 10 minutes to figure it out. Don’t worry — it’s way easier than you think.
If you’re under the age of 54 and want to get a fast life insurance quote without the medical exam, pushy sales calls or even getting up from the couch, check out Bestow. The company is built around one concept — helping you get the term life insurance policy you want, simply and fast.
It just takes five minutes to answer some basic lifestyle questions, and you can get quotes for up to $1 million in coverage without a medical exam. If you’re approved, you can personalize your coverage to fit your budget. You can change or cancel your plan at any time.
Bestow is available in 48 states (excludes New York and Georgia) and expanding quickly around the U.S.
For everyone else, a company like Policygenius offers you an easy way for anyone to compare and buy life insurance. The search engine allows you to compare policies and get instant quotes. Once you find the right fit, you can apply right online.
3. Invest in Real Estate (Even If You're Not Wealthy)
Many of us would rather not think about death — let alone life insurance.
Want to try real-estate investing without playing landlord? We found a company that helps you do just that.
Oh, and you don’t have to have hundreds of thousands of dollars, either. You can get started with a minimum investment of just $500. A company called Fundrise does all the heavy lifting for you.
Through the Fundrise Starter Portfolio, your money will be split into two portfolios that support private real estate around the United States.
This isn’t an obscure investment, though. You can see exactly which properties are included in your portfolios — like a set of townhomes in Snoqualmie, Washington, or an apartment building in Charlotte, North Carolina.
You can earn money through quarterly dividend payments and potential appreciation in the value of your shares, just like a stock. Cash flow typically comes from interest payments and property income (e.g. rent).
(But remember: Investments come with risk. While Fundrise has paid distributions every quarter since at least Q2 2016, dividend and principal payments are never guaranteed.)
You’ll pay a 0.85% annual asset management fee and a 0.15% annual investment advisory fee.
4. Find out If You're Paying Too Much for Car Insurance
For many, car insurance is just one of those things where we cave in and pay. Because, just like the electric bill and phone service, we need it, right?
Yes. There’s no getting around car insurance, unfortunately. But one way you could save money is by shopping and comparing rates twice a year.
“Not only can a lot of circumstances in your life and your car (mileage, age) change in that time, but insurance companies may be changing their pricing as well, and you want to be sure you're getting the right coverage, service and of course pricing to suit your changing needs,” says Alyssa Connolly, the director of marketing insights at The Zebra.
According to The Zebra’s 2019 State of Insurance report, consumers just aren’t doing this. And car insurance rates keep increasing, with the average person paying $1,470 a year for coverage.
The takeaway? Compare rates regularly. The Zebra, an online car insurance search engine that offers “insurance in black and white,” compares your options from 204 providers in less than 60 seconds.
Just enter information about your car and your coverage needs, and The Zebra shows dozens of side-by-side quotes from top insurance companies for free.
5. Have a Cup of Coffee and Assess the Damage
When’s the last time you looked at all your debts and their interest rates to devise a payoff plan?
That’s what I thought.
A really easy way to do this is to get a “credit report card” from Credit Sesame.
Credit Sesame is like your favorite teacher from high school — without the pop quizzes.
It gives you a free credit score, plus lays out your credit history so you can see exactly how much money you owe and to whom. It even tells you your monthly payments and interest rate, as well as which debts (if any) are in collections.
And you don’t have to stay home to do it. The Credit Sesame app lets you keep track of your credit score and ways to improve it — on the go!
For example, it might recommend a mortgage lender, credit card or debt refinancing, based on your needs and chances of being approved.
James Cooper, a motivational speaker, raised his credit score 277 points using Credit Sesame. Now he talks to high school students about the importance of having good credit and uses what he’s learned through Credit Sesame as a blueprint for his lessons.
“We want to touch the Z Generation,” Cooper says “We’re not in the business of fixing credit. We want to get to you before you have to fix your credit.”
6. Pay Less for Your Student Loans
Did you know you might be paying more than you need to for your student loans? If you want to save (um, duh), you should look into refinancing.
That means you work with a company to get a whole new loan and interest rate. Your new lender pays off your old student loans and replaces them with a loan that works better for you. You could lower your monthly payment and save a ton of money in interest over the life your loan.
A company called CommonBond makes the process quick and easy to understand. You can get a quote on a new interest rate in just a few minutes to — and it won’t hurt your credit.
CommonBond helped Katie Ulrickson, a pediatric critical care nurse, save $515 a month on her student loans. She had $100,000 to pay back and seven different monthly payments to keep track of. She rolled it all into one new loan, dropping her monthly payments from $1,200 to $685 — in only one payment a month.
8. Get the Most out of Your 401(k)
You have a 401(k) — kudos for that, but is it doing what you need it to?
If you’re like most people, you have no idea whether your 401(k) is on pace for your retirement or just sputtering along.
Chances are, your 401(k) could be doing a lot better. Take control with help from Blooom, an SEC-registered investment advisory firm that can optimize and monitor your 401(k) for you and keep it speeding toward retirement.
It just takes a few minutes to get a free 401(k) analysis that will show you whether your investments are allocated properly and whether you’re losing money paying hidden investment fees. It’ll even tell you just how much more money your account could earn by the time you want to retire.
After that, if you sign up, it’s just $10 per month to have Blooom monitor and maximize your 401(k). Bonus: Penny Hoarders get the first month free with the code PNNYHRD.
Think of Blooom like a mechanic constantly fine-tuning your car’s engine so it gives you the best possible performance and gas mileage. Except it’s your 401(k) — and your future.
8. Dodge Bank Fees — and Get Paid up to 2 Days Early
There’s no law that requires you to bank the old-fashioned way — at a brick-and-mortar bank with a crummy interest rate on your savings.
It’s time to move your money into the 21st century. An iOS app called Varo Money combines traditional banking tools with modern technology to help its customers become financially healthy.
Here’s the best part: Pair your Bank Account with a Varo Savings Account where you’ll earn 2.80% annual percentage yield. That’s nearly 47 times — repeat, 47 times — the average savings account, based on a 0.06% average reported by CNN Money.
Varo goes easy on the fees, too. As long as you use one of its 55,000 ATMs across the world, you’ll never pay fees.
Additionally, you’ll pay no monthly service fees, no minimum balance fees, no foreign transaction fees and no cash replacement fees. You’ll just pay any fees charged by out-of-network ATMs and cash deposit fees if you deposit cash in-store through Green Dot.
9. Get Control of Your Money With a Budget
Clarity Money* is a free app that helps you see, organize, and take control of your finances.
The way it works is simple. You just download the app, connect your existing accounts, and get ready to learn more about where your money’s disappearing to… and how to keep more of it.
Clarity Money analyzes and uses your spending history to provide budgetary insights. It’ll show you exactly how much you spend in different categories, like bars and restaurants, as a percentage of your total expenses.
But it’s not just a recap of your weekend spending with pretty graphics.
It also gives you the tools and information you need to start making better financial choices. And they’re all super-easy to use, and accessible right inside the app.
Disclosure: Clarity Money compensates us when you download the app using the links we provide
10. Fix Your Credit the Easy Way: Have Someone Else Do It
Do you get phone calls and mail from debt collectors? If you do, we’re sorry to say your credit score probably isn’t awesome. And that means you’ll have to pay more to buy a home, or rent or buy a car, among other things.
Collection Shield 360, a free credit repair service, helps people clean up their credit reports and deal with collection agencies.
With a free basic membership, it contacts your debt collectors to have negative marks on your credit report removed, and it provides you with credit-bureau dispute letters that can help scrub your credit report.
The service helped 31-year-old server Tabatha Pankop deal with lingering bills from T-Mobile, Bright House Networks and Verizon. Her credit score jumped up nearly 200 points, enabling her to move into a better apartment and start looking for a townhouse to buy.
Premium membership includes monthly updates of your credit score and collection accounts. That costs $1 for a two-month trial; then it’s $9.48 per month.
Bonus : Talk to a Tax Agent
Is it too much to ask to have one place to do your taxes professionally — regardless of how many deductions and forms you have — for free?
Nope. At least that’s what Credit Karma thinks. You probably know Credit Karma as the website to get your free credit score and find other financial products, and now it’s reinventing how you do your taxes. Its new Credit Karma Tax preparation lets you do your taxes with professional help for free.
From the time you sign up to the time you file, doing your taxes with Credit Karma is completely free. Have a lot of deductions? No problem. Need to talk to a professional to figure things out? Credit Karma can help you out. Want your max refund? It’s guaranteed.
You can even import your taxes from last year to get a head start with its Jumpstart feature.
Don’t let the guy sitting at that card table at the grocery store do your taxes. And don’t blow half of your return on a CPA. Try Credit Karma Tax preparation. It’s completely free, guaranteed accurate and lets you keep your whole refund.
Now you need to decide just how much fun to have with that refund!
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