1. Create a Financial Budget

You may be used to budgeting money on the fly and putting whatever you think looks right into savings. Sometimes, that works, but creating a consistent financial budget will help you establish more realistic and accurate goals. If you need help creating a financial budget, you can follow a tried and true 50/30/20 ratio. It consists of spending roughly 50% of your after-tax dollars on necessities, no more than 30% on your wants, and at least 20% toward savings and/or debt repayment.

2. Check Your Credit Report

To ensure you don’t have incorrect information on your credit report that may hurt your credit score, we recommend monitoring your credit report often. By doing so, you can correct any false information and fix your credit score as soon as possible. A lower credit score from incorrect information could result in higher premiums and interest rates. You can obtain a free copy of your credit report at AnnualCreditReport.com. If you suspect foul play, such as fraud or identity theft, consider freezing your credit card account by calling your financial institution. To file a dispute, call the credit-reporting bureau directly. 

3. Research How to Earn Extra Income

If you’re trying to put away extra income for a large purchase like a car, house, or tuition, consider getting a side hustle. Brainstorm some ideas and make a list of your skills that could help you earn extra income. This could range from seasonal work, services you could provide on your days off, or even requesting additional hours at work. A great site to find ideas you may not have thought of is Side Hustle Nation.

4. Automate Payments

If you struggle to make payments on time due to a hectic schedule or it slips your mind, follow along closely with this one. Setting up automatic payments could save you time and money by helping you avoid late fees. Additionally, paying your bills on time will help you increase your credit score! Don’t forget to monitor and check your bills periodically to ensure they are accurate. Consider using BillPayer or Biller Direct within Launch CU’s Digital Banking Suite to automate your bills. You can also set up recurring transfers and loan payments!

5. Cut Out Unnecessary Fees

If you’re looking to save a bit more each month, consider cutting out or lowering the number of bills you pay each month. One thing you could consider cutting is cable. Swapping to a streaming service such as Hulu or Netflix can save you tremendously. Cutting out smoking is another great way to save money each year. This goes beyond just the cost of a pack of cigarettes. On average, smokers pay more for health insurance, life insurance, and long-term care insurance on the private market. Of course, kicking the habit is easier said than done.

Additionally, pay attention to any memberships you may have but are not taking advantage of. Do you have a membership to the gym that you have been avoiding? If so, consider an at-home workout instead, or get some cardio by running outside.

6. Price Shop

Sometimes, you can negotiate with car insurance companies and phone companies. Consider calling to see if you can negotiate your bill and lower your costs. Oftentimes, if you prove that another company can offer a better price, they will lower theirs to match it. This doesn’t always hold true, but it’s worth trying out!

7. Create An Emergency Fund

A financial crisis is not something we can predict. As such, it’s best to be prepared. One of the best ways to prepare you and your family for financial emergencies is to set up an emergency fund. It might be hard to set aside money that you’re not getting a return on, but take our word for it, you will be happy it’s there when you need it! The typical amount of money you should consider for your emergency fund is between three to six months’ worth of your expenses. While this may seem like a lot, this amount doesn’t have to appear overnight. Try to set aside money weekly, monthly, or even bi-monthly. Another great option is setting aside the money you may get from your tax return.

8. Meal-Prep and Cook at Home More

We all know that restaurants and fast food are convenient, but oftentimes it is more expensive than eating at home. Finding time to cook a healthy and delicious meal at home takes time and dedication. Cutting back on dining out and cooking more affordable meals at home can save you money in the long run. If you’re short on time, consider a meal-prep day. You could plan your meals out on Sunday and cook a few of them for the week, or even plan to use a slow cooker to save time.

9. Read More

What better way to learn about personal finances than reading tried and true personal finance books? You can learn everything from budgeting to doing your taxes, to investing! Just make sure you do additional research before you implement some of these plans. While some concepts have proven results, others can be pretty far out there. If you need reading suggestions, check this list to improve your finances. Launch CU’s blogs also offer many informative and helpful articles regarding personal finance!

10. Adapt and Overcome

Lastly, it’s important to be flexible. If issues come your way, don’t give up! Adapt and overcome them. Always stay positive and strive to be a better person than you were yesterday. Remember, even baby steps can lead to success.

Saving for the future is intimidating. By following these ten ways to improve your finances now, you are taking the first step towards achieving your financial goals! Launch Credit Union is always here to help, with our team of industry experts to assist in your plans to achieve future goals.