(as of May 15,2023 11:54:16 UTC – Details)
REDUCING MONTHLY EXPENSES: THE BIG THREE
If you have an extra room, consider having a roommate to help split your rent. Renting is sky-high, but if you are looking for a new place, consider an apartment that offers all utilities included.
For transportation, consider taking public transit. Transit passes are cheaper when you purchase a monthly pass and can be an alternative to ride shares.
If you have a car, call your insurance provider for discounts. Also, keep on top of your car maintenance. Little fixes can become big fixes if you’re not proactive.
Learn how to meal plan. By knowing what you’ll be eating throughout the week, you can shop for sales and coupons. Also, download your favorite retailer’s app. Their app can include coupons and cash-back offers you can’t find elsewhere.
If you will eat out, try locally-owned restaurants instead of the big chains. Not only are you supporting small businesses and your community, but you’re also not paying crazy markup prices.
What is budgeting, and why is it important for saving money?
Budgeting is creating a spending plan that tells your money where to go. By tracking your expenses and income, you can make your money work for you and not against you. And yes, this includes dream trips and that cool new car you’ve been eyeing!
What are some strategies for paying off debt and improving my credit score?
Take advantage of the debt avalanche and snowball method. A debt avalanche ranks your debt by interest rate (high to low) and then pays off the higher ones first. This payoff method helps you save the most money over time by paying less interest. If you prefer more immediate motivation, a debt snowball has you ranking your debt from the lowest debt to the highest owed. Once the smallest debt is paid, you take your regular payment and apply it towards paying off your next one. Credit Karma is a free online tool that analyzes your credit score without a hard hit and can tell you what you need to work on instead of randomly guessing. You also want to make sure you’re not maxing out your available lines of credit,
What are the best savings accounts for earning interest on my money?
A high-yield savings account (HYSA) is a better option than a traditional savings account to earn interest on your savings. On average, HYSAs offer 20-25 times higher interest rates, which means you can hit your financial goals much faster. Other ways to earn interest are certificates of deposit (CDs), money market accounts, and bonds from the U.S. Department of the Treasury.
What are some tax-saving strategies for individuals and families?
Take advantage of your pre-tax dollars. Contribute regularly to retirement savings. Pay for your health insurance and put money into an account that helps you pay your medical expenses, like a health savings or flexible spending account. By lowering your gross pay, you’ll have less cash to be taxed. Also, look into what deductions you qualify for, like the Child Tax Credit and the Child and Dependent Care credit. For a complete list of credits and deductions, visit the IRS website.
What resources are available to help me manage my finances and reach my financial goals?
Budgeting For Dummies is a start! Check Amazon to find popular personal finance books and purchase them with good reviews. Try free online money management tools like Mint, Personal Capital, and Prism. These can help you identify where your money is going so you can start to put it elsewhere.
ABOUT THE AUTHOR
ATHENA VALENTINE LENT is an award-winning financial columnist for Slate Magazine. Athena became passionate about financial representation for the Hispanic community after teaching life skills in a Title I school where the was no financial literacy being offered. This passion led her to start the popular website Money Smart Latina and to become an advocate on issues such as the Latina wage gap and multi-generational housing. Additionally, Athena has written for BuzzFeed, Prudential, Experian, T. Rowe Price, The College Investor, GOBanking Rates, and Money Under 30. She’s also the community liaison for FinCon, an annual conference for content creators and brands in the financial industry.
Publisher : For Dummies; 1st edition (May 9 2023)
Language : English
Paperback : 320 pages
ISBN-10 : 1119985145
ISBN-13 : 978-1119985143
Item weight : 431 g
Dimensions : 18.54 x 2.29 x 23.37 cm