Skip to content
  • Home
  • Categories
    • Basic SEO Strategy
    • Content Marketing
    • Digital Marketing
    • Local SEO
    • On Page SEO
    • Pay Per Click Marketing
    • Social Media Marketing
    • Video Marketing
  • About
  • Contact
  • Privacy Policy

    operativesoft.com

    SEO Solution & Marketing General Tips

    • About
    • Contact
    • Privacy Policy
    • Site Map

    Category: Investing

    The 5 Best Financial New Year’s Resolutions

    by Marjorie Lowe

    January 12, 2021

    4:32 am

    Leave a comment on The 5 Best Financial New Year’s Resolutions

    Financial Planning, Home, Investing

    2021, Auto, Auto Loans, balance transfer, Budget, Buy, Car Insurance, credit, credit card, Credit Card Debt, debt, Fees, Financial Planning, financial resolutions, Financial Wize, FinancialWize, How To, invest, Investing, Loans, Main, New Year, new years resolutions, Original, Popular, rate, Refinance, refinancing, Retirement, savings, Savings Account, savings accounts, Student Loans

    Change has to start somewhere, and for many people that change is easier to make if the starting point has some meaning. It can be a birthday, an anniversary, or any other date with some symbolic weight. Most commonly, people choose the beginning of the new year.

    If you’re looking for some New Year’s resolutions that will truly change your life, consider adjusting your financial strategy. Here are five things you can do in 2021 to take your money game to the next level.

    Refinance Loans

    Interest rates are at near-historic lows, which makes this the perfect time to refinance your debt. Refinancing means switching your loans from your current lender to a new lender in order to take advantage of a lower interest rate. Refinancing can save you thousands of dollars, depending on the original interest rate and total balance.

     For example, let’s say you have a $200,000 30-year mortgage with a 5% interest rate, and you refinance to a 3% interest rate. Your monthly payment will be $244 lower, and you’ll save $31,173 in total interest over the life of the loan. 

    You can refinance auto loans, personal loans, and even student loans. However, if you have federal student loans, you may want to hold off on refinancing. Refinancing a federal student loan converts it into a private student loan. This means you’ll give up extra perks and benefits like income-driven repayment plans and deferment and forbearance options.

    Transfer Credit Card Debt

    If you have credit card debt, you can pay less interest by transferring the balance to a new card with 0% APR on balance transfers. These special discounts usually last between 12 to 18 months, during which time you won’t be charged interest on the credit card balance.

    For instance, let’s say you have a $5,000 balance on a card with a 17% APR. If you only make the minimum payments, you’ll pay $1,223.61 in total interest. If you transfer that balance to a card with 0% APR for 12 months and repay the balance in that time, you won’t pay any interest.

    There is often a small fee associated with balance transfers, around 3% of balance transfers. For example, if you transfer $5,000, you’ll pay a $150 fee. That still leaves a net savings of $1,073.61 in the scenario outlined above.

    Decrease Your Fixed Expenses

    One of the best things to do for your budget in 2021 is to decrease fixed expenses like your car insurance, internet, cable, and cell phone. Call those providers and try to negotiate a lower rate.

     Go through your transactions for the past few months and write down all the recurring subscriptions like Netflix, Amazon Prime, and DoorDash. Then, group them into categories like “frequently use,” “sporadically use” and “rarely use”. Consider canceling anything you rarely use.

     See if you can get a better deal on your most popular subscriptions. For example, if you and your significant other both pay for Spotify Premium, get a Spotify Duo account instead, and save yourself $83.88 a year.

    Open a Better Bank Account

    Most people are missing out on an easy way to earn money through your bank account. You could be leaving hundreds of dollars on the table if you still have a traditional savings account.

    According to the FDIC, the current average interest rate on a savings account is 0.05%. Many high-yield savings accounts offer rates between .40% and .60%. 

    Let’s say you have $10,000 in a savings account with .05% interest. After one year, you’ll have earned $5.04 in interest. If you moved that amount to a high-yield savings account with .5% interest, you would earn $49.92 in interest over that same time period.

    Start Investing

    If you’re not investing for retirement yet, this might be the most important financial resolution you can make. Thanks to the power of compound interest, you can start investing now and see huge growth by the time you’re ready to retire.

    IRAs and 401(k)s are the two main retirement accounts. Anyone can open an IRA, while only those who have access to an employer-sponsored 401(k) can open one.

     If you’re not sure how to invest in your retirement account, consider hiring a qualified financial planner through the National Association of Personal Financial Advisors (NAPFA).

    If you’re not ready to work with a financial planner, you can use a robo advisor like Betterment or Wealthfront, which will create a portfolio based on your age, income, and expected retirement age. Robo advisors have low fees and are designed to help beginner investors.

    How to Keep Financial Resolutions

    First, start small. Pick one habit to change at a time. If you try to accomplish five goals at once, you’ll burn out quickly and give up. 

    When you decide on a resolution, break it up into smaller, more manageable tasks. For example, if your goal is to talk to a financial planner about investing, break it down into the following steps:

    1) Research financial planners through NAPFA

    2) Send introductory emails to three financial planners

    3) Choose the one that seems like the best fit

    4) Schedule a consultation

    Give yourself a deadline to accomplish each of these tasks, and ask a friend to hold you accountable.

    Another tip is to tie your resolutions to a bigger goal. Like dieting or starting a new exercise plan, changing your financial habits is hard. If you’re used to grabbing lunch with your co-workers every day, bringing leftovers from home instead will seem like a huge change.

    The key is to imagine the future version of yourself who will benefit from the changes you make today. If your goal is to open and contribute to a retirement account, imagine yourself as a senior citizen living comfortably.

    When you’re tempted to skip this month’s retirement contribution to buy concert tickets, think about your future self, what you’d want for them and how they would appreciate your sacrifice. It can also help to remember some of the financial mistakes you’ve made in the past, and how much easier your life would be right now if you had made a different choice.

    The post The 5 Best Financial New Year’s Resolutions appeared first on MintLife Blog.

    Source: mint.intuit.com

    Categories

    • Account Management
    • Airlines
    • Apartment DIY
    • Apartment Hunting
    • Apartment Life
    • Auto
    • Auto Insurance
    • Auto Loans
    • Banking
    • Basic SEO Strategy
    • Borrowing Money
    • Breaking News
    • Budgeting
    • Building Credit
    • Building Wealth
    • Car Insurance
    • Cash Back
    • Checking Account
    • College
    • Commercial Real Estate
    • Content Marketing
    • Credit 101
    • Credit Card Guide
    • Credit Cards
    • Credit Repair
    • Crime and Safety
    • Debt
    • Digital Marketing
    • DIY
    • Early Career
    • Education
    • Estate Planning
    • Extra Income
    • Family Finance
    • Financial Advisor
    • Financial Freedom
    • Financial Planning
    • Find An Apartment
    • First Time Home Buyers
    • Flood Insurance
    • Food Budgets
    • Frugal Living
    • Health Insurance
    • Home
    • Home Buying
    • Home Buying Tips
    • Home Decor
    • Home Design
    • Home Improvement
    • Home Loans
    • Home Ownership
    • Identity Theft
    • Investing
    • Liefstyle
    • Life Hacks
    • Life Insurance
    • Loans
    • Local SEO
    • Luxury Homes
    • Marketing Analysis Guide
    • Mortgage
    • Mortgage News
    • Mortgage Rates
    • Mortgage Tips
    • On Page SEO
    • Pay Per Click Marketing
    • Paying Off Debts
    • Personal Finance
    • Pets
    • Real Estate
    • Refinance
    • Retirement
    • Saving Energy
    • Savings Account
    • Selling A House
    • Side Gigs
    • Social Media Marketing
    • Starting A Family
    • Student Finances
    • Student Loans
    • Taxes
    • Travel
    • Unemployment
    • Video Marketing
    • Work From Home

    Recent Posts

    • How to Save for a House in 8 Steps
    • Shigeru Ban-Designed Home in Sagaponack, NY is the Prized Architect’s Only Project in the Area
    • Is It Real? The Creepy Mansion in ‘The Haunting of Hill House’
    • 6 Second Uses for Hand Sanitizer
    • Brooklyn mortgage scam inflicts million-dollar damages to the FHA

    Tags

    Auto Banking Budget Budgeting Buy Buying Career Car Insurance Cash Back Cities College credit credit card Credit Card Debt credit cards credit score debt Family Fees Finance Financial Goals Financial Wize FinancialWize Home How To interest rates invest Loans Main News Original Personal Finance Popular Products rate Retirement Save Money Saving savings savings accounts School security Spending Student Loans Travel
    operativesoft.com
    Home | Contact | Site Map

    © 2021 operativesoft.com Powered by WordPress Theme: Gillian

    Back to top