READER'S ROCK LIFESTYLE MAGAZINE VOL 2 ISSUE 4 NOVEMBER 2014 Vol. 1 Issue 7 January 2014 | Page 67
10 simple ways to instantly
improve your finances in 2014
Have A Happy New Year Guide
(BPT) - Do you wonder how you
could better manage finances? You're
not alone. When it comes to money,
most people are far from perfect.
Whether you make $20,000 a year or
$200,000, some simple steps can
start you on the right financial path,
and some of them only take a few
minutes to complete.
"Personal finance is an intimidating
topic, especially if you've made
mistakes in the past," says Michael
McAuliffe, an adjunct instructor at
Morton College and president of the
nonprofit Family Credit
Management. "But everyone has the
opportunity to start fresh and make
improvements. Your past missteps
don't have to dictate your financial
future if you resolve to be proactive
today."
McAuliffe recently co-authored a
financial workbook titled "Personal
Finance Made Easy." Thanks to a
grant from State Farm, the workbook
can be downloaded for free at
www.familycredit.org, or you can
request a hard copy be mailed to you
free of charge. You can use the
workbook alone or pair with the free
online video lessons. Topics covered
include money management, savings,
investing and more.
McAuliffe suggests 10 simple ways
for you to start improving your
finances immediately:
1. Stop, think, save When out shopping,
don't mindlessly pile
things in the cart. Take a
moment to stop, think
what you really need,
and save by not buying
extras. Cutting
unnecessary spending is
easy when you make a
habit of briefly pausing
to analyze what you
really need.
2. Cut 5 percent - If your employer
cut your paycheck by 5 percent,
you'd be unhappy, but you'd still be
able to survive. Why not make that
cut now? Reduce the extras like your
daily latte or weekly visit to the salon
and the savings will mount quickly.
3. Save - Every little bit counts when
it comes to savings. If you save just
$5 a day - the cost of a fast food
lunch - you'll have $1,800 in a year.
It's OK to start slow and build
momentum. The ultimate goal should
be to save at least 10 percent of your
net income (income after taxes and
other deductions).
4. Budget - It sounds simple, but
most people don't have a solid
budget. Create a spending plan now
and stick to it. List all expenses and
see where adjustments can be made.
Refer back to your budget regularly
to stay on track.
5. Keep multiple savings accounts The less accessible your money is,
the easier it is to reduce spending.
Keep multiple savings accounts and
pay yourself first. One savings
account could be designated for an
emergency fund, another for a new
car or a future vacation.
6. Make it visual - Discourage
overspending by reminding yourself
why you are trying to save. A photo
of your vacation destination, for
example, illustrates what you're
saving for; put it everywhere you
spend money - wallet, computer
monitor, vehicle, etc.
7. Make your money work for you Consistent contributions add up over
time, and thanks to the power of
compound interest, the longer you
leave your money untouched in a
savings account or other investment,
the more it can grow.
8. Home savings - If you own a
home, you know it can cost a lot of
money. Cut costs by doing home
improvements and maintenance jobs
yourself rather than hire out. Call
your insurance agent and see if there
is a lower rate for homeowner's
insurance. Check into refinancing
while rates are still low.
9. Manage checking accounts - You
need a checking account, but are you
really keeping track of your money?
Online banking makes it easier than
ever to balance your checkbook,
track your spending and set up alerts
when your balance goes under a
certain amount.
10. Review your credit report - From
mortgages and car loans to
employment and renting eligibility,
your credit report and score affect
many aspects of life. You can review
your credit report for free annually
by going to
www.annualcreditreport.com. Make
sure you know what's on it and make
corrections as necessary.
For more practical financial tips,
visit www.familycredit.org and order
your free "Personal Finance Made
Easy" workbook. In addition to
partnering with State Farm on this
project, FCM received grants from
Bank of America, Barclays Bank and
AICCCA (Association of
Independent Consumer Credit
Counseling Agencies.)