Happy Tax Day, hunnies! In honor of this much anticipated time of year, we put together some money management tips that will motivate and inspire you to get your finances in order!
Whether you’re just starting your financial wellness journey or are a seasoned boss babe in need of some foundational reminders, we’ve got you covered. Read on to learn how to get money and start building your empire.
#1: Pay Down Your Credit Debt
The most beneficial thing you can do for your financial health is pay down your debt. When you accumulate debt, you’re literally losing money.
Have you checked your APR lately? APR (Annual Percentage Rate) is the interest you pay on your charges. If you charge a lot to your credit card without promptly paying it off, you might be paying a lot more than you realize.
Determine an amount you can put towards your debt on a weekly or biweekly basis, depending on when you get your paycheck, and commit to that number until you hit $0 on your statement!
Most financial advisors recommend paying down one card at a time so you can stay motivated by seeing the balance go down more quickly than paying a little here and there on different cards.
Oh, and in case it isn’t obvious, stop spending on your credit card until you pay it down!! Then you can start charging responsibly from scratch.
#2: Start Saving
Opening a high-yield savings account at an online bank is one of the easiest ways to build wealth. You get a certain percentage (usually 0.5% right now) of your account total automatically deposited back to you.
So, what does that mean? It means free money, gf.
Even starting with a seemingly small amount makes a difference. For example, if you put $25 into savings each week, you’ll have accumulated $1,300 in savings in only one year! Putting $100 into savings each week means you’ll have over $5,000 in savings by this time next year! The amount you add each week depends on your personal financial goals.
Hot Tip: Automate your savings! This means setting up an automated weekly transfer from your checking to your savings account. That way you never forget to transfer–And you won’t miss the money if you never saw it in your account in the first place.
#3: Open A Roth IRA or 401(k)
If your company offers a 401(k) match, get that bag, girl! Honestly, what are you doing if you aren’t taking advantage of any opportunity for free money?
If your company doesn’t offer a 401(k) match, then you might be better off with a Roth IRA. If you’ve ever wondered wtf the difference is between these two retirement savings tools, we’ll break it down for you:
#4: Open A High Reward Credit Card
Getting money back for spending? Yes, please!
We personally love any credit card that gives us rewards for spending. For example, you can get a travel-specific credit card that earns you flight, travel, or hotel points when you spend.
Not a big traveler? You can get a credit card that gives you cash rewards when you spend at a certain location or make a specific type of purchase – e.g. gas, groceries, etc.
You need a good credit score to open a new card with a low APR, so always pay off any debt before opening a new line of credit!
#5: Track Your Spending
This exercise may sound intimidating, but we promise it’s so worth it!
In order to complete any of items listed above, you obvi need funds to make it all happen. So, we recommend that you make a list of what you spend your money on for at least a couple of weeks.
Look at where your money is actually going so that you can make more informed decisions.
If you find out (like some of us who have done this recently…) that you’re spending way out of budget on Postmates or Starbucks or happy hour, then take an honest look at where you can cut back–And then redirect that money into paying off debt or growing your savings.
We hope this blog helps you learn more about your financial health! Happy Tax Season, bbs.