Take charge of your personal finances in 2021
This year is your time to get a handle on your personal finances. If you want to manage your debts, plan for the future, or get advice on how to invest in your future, we have compiled some prudent tips for getting on your feet and planning for financial success.
Know Your Debt Structure
Your negative net worth is defined as the collective sum of all of your debts. It includes large debts such as car payments and student loans, as well as smaller debts from credit cards. Some might think that the best way to pay off debt is to target the biggest numbers first, but that would actually be going about it backwards. To successfully pay down your debt, you need to target your individual bills. This breaks the task into smaller, individual goals.
When you take aim at your debts, don’t focus on the ones with the biggest principal, but instead try to pay off the debts with biggest interest percentages first. Securing a payday loan from a transparent lender like GoDay is a tactical way to get access to funds you need right away. While these loans are convenient ways to secure avoid red tape and hurdles, they can also come with the highest interest rates. So, make sure to pay these smaller debts off first, then shift your focus to the big fish in your debt pond.
Rely on Technology
When it comes to personal budgeting and financing, technology — especially in the personal app department — has come a very long way.
Want to get a handle on your day-to-day spending? Mint provides an all-in-one personal finance platform to help you manage everything in one place, from balances and bills to debts, credit score, and more. The platform allows you to create your own budget, but it offers helpful tips based on your own spending habits. You can set short- and long-term goals and get regular updates on your progress.
Looking to build your investment portfolio? Apps like Personal Capital can help you invest better and make a solid plan for retirement. Licensed financial advisors will review your portfolio and provide money management guidance to help you make long-term planning a reality — all through the app.
Consult with Experts
Experts bring a lot to the table. In finance, an accountant or money manager not only brings training and knowledge, but it’s also their job to keep diligent track of your spending. They not only help you plan your investment strategy, but they also monitor your credit card and bank statements, looking out for irregularities. They can help you track expenses to make the most of your tax benefits. You can also hire bookkeepers who work for you only at tax time to avoid the cost of a year-round accountant.
If you own a personal business, a financial specialist becomes even more vital, as they can help you handle payroll and benefits, capital costs such as your lease, and they can help you secure lending.
Whatever your situation, finances can be a challenge. Whether you’re trying to save more, spend less, manage debt, or build a business, being assertive and proactive will help you on the road to success.
