Although the economy is somewhat starting to develop, there are many Americans who still don’t have jobs and are struggling to pay their bills. Not knowing if you will be able to pay your mortgage or car payment this month can surely make you feel intensely anxious. Fortunately, there are a few things you can do to protect your finances this year.
1. Set up a savings account
In this uncertain economy, it is more crucial than ever to set up a savings account. If you lose your job or receive an unexpected bill, you will have some money to get you by. If you can’t afford to put hundreds of dollars in a savings account right now, at least try to keep $10 a week.
2. Don’t Get Into Credit Card Debt
One of the worst things you can do for your finances is get into credit card debt. If you rack up thousands of dollars in credit card debt, the interest rates will be so high that it will take you a long time to pay them off. Unless it is an emergency, try to avoid using your credit card. If you do end up using it, make sure to make your payments on time each month. If you tend to use your credit card when you are out shopping, leave it at home.
3. Contribute to Your 401(k)
One of the best ways to save for your future is to contribute to your 401(k). If you save for your retirement in a 401(k) account, you can save money on taxes and increase your retirement security.
4. Do a Background Check on Your Investment
It is a good idea to do an annual background check on your investment. It is totally free and can save you a lot of money in the future. For example, you can go online and use FINRA Broker Check to check your investments.
5. Refinance Your Home Through HARP
If your mortgage payments are too high, you should consider refinancing through the Home Affordable Refinance Program. It helps you refinance your mortgage to get a more affordable rate. Understand that you will be required to fill out a loan application and go through an underwriting process.
If you follow these helpful tips, you will be able to protect your finances much easier.
Author: Madyson Grant