FINANCIAL ADVICE By Sarah Hussain
5 Key Steps to Improve Your Finances for 2021
It’s hard to know what challenges might be on the horizon in 2021 that could effect your finances, but taking a few key steps now can help you be ready for whatever comes.
Having a plan is key to your financial success, so we at Achieva Credit Union have five steps to help you prepare for 2021.
Pay Yourself First
Choose a percentage of your income (1-5% or so) to go automatically into your savings account before you make any payments. After a few pay periods, you won’t even notice it. With online banking, you have easy access to everything, but if you can make it inconvenient (but not impossible) to pull money out of your savings on a whim, you’re more likely to leave it there.
Set (and Stick to) a Budget
Understanding where your money is going will help you make smart choices. Are you shelling out money every month for a streaming service your kids got bored with? Can you cancel that gym membership? Having a budget will help you see where you might be going overboard, and it will alleviate any guilt you might have about making a big purchase.
Clean Up Your Credit
Fewer than 40% of Americans with credit card balances know their Annual Percentage Rate (APR). Review your statement often, and if you’re not happy with your current rates, make a switch. Let Achieva Credit Union help you transfer your existing credit card balances to a lower APR: If you have a solid credit score, transferring your balance could save you a lot of money on interest.
Refinance
Even if you bought your home in the past few years, it might be time to consider refinancing. Rates are at an all-time low, and refinancing your home can lower your monthly payments, reduce the number of payments you need to make, or give you access to cash. Make sure you first research your options and take the time to ask your lender questions. Refinancing is typically a simple process; however, it’s only beneficial if it improves your loan’s terms.
Make Smart Plans for Your Tax Refund
If you’re expecting a refund on your next tax return, be smart about how you use it. After you pay off bills with high interest rates, set up an emergency fund. Put this money in a separate savings account if you can and designate it for helping you overcome financial challenges that could come up in 2021, such as unplanned medical expenses or repair bills.
Doing this planning will make a big difference in your financial well-being for 2021. To learn more about how Achieva can work for you and help you with your financial plans, go to Achievacu.com, visit your local branch drive-thru or call me at 727-431-7680.
great work well done thank you