Fast Forward: Small Financial Moves You Can Do Now That May Pay Off Big Later
Life can be full of twists and turns and decisions you make know can have an impact on your future in either a positive or negative way.
The same can be said when it comes to your finances, and many financial moves that you make now, however small, can help to shape your financial future.
Here is a look some savvy strategies that could make a difference in the long-term. There is an overview of an alternative way to look at your finances, plus some tips to keep more cash in the bank, and why your credit score matters.
It is easy to focus your attention on the bigger picture when it comes to your finances and that often means you pay far more attention to your mortgage and retirement payments than the smaller financial commitments you might have.
It is worth adopting a different mindset and remember that macroeconomics matter.
What this means is that lots of small steps in the right direction rather than attempting giant leaps will have a cumulative effect on your financial position. A good example of how this way of thinking could revolutionize your finances would be when you take a look at your efforts to save for retirement.
If you can only afford to put aside $50 per week towards at the moment, you might be tempted to think that a small regular contribution like this won’t have the desired impact on your future savings targets.
But if you managed to earn just 2% interest on that savings pot, you would have accumulated in excess of $8,000 in just 36 months. That little number suddenly looks a lot bigger when you adopt a mindset that focuses on taking small steps forward with your money.
Find more money
Most of us would like to have more money to play with each month but rather than taking a second job and working more hours, you could most likely find some more money simply by putting your finances under the spotlight.
Make a list of all of your monthly expenses right down to the smallest amount of expenditure like buying a regular coffee on the way to work.
Once you have all the numbers in front of you, there is a good chance that there will be some monthly subscriptions and other expenses that you could cut out of your budget. Do that and when you add up all those small savings, you might find that you have managed to identify a chunk of cash that you could use to invest for a better future.
Keep borrowing costs down
It is all too easy to let your finances run away with you and sometimes you find that you have dug yourself into a financial hole and damaged your credit rating with some missed payments and overextended yourself with a high debt-to-income ratio.
You might be able to find that someone like creditrepair.xyz could identify some ways to repair any damage that you have done with your credit score.
The relevance of this is that if you get your loans under control and clear down balances, when you do need to borrow money in the future you will are more likely to be accepted and you should get a better quote on the interest rate.
Paying less for your credit and tracking all your expenses are just two financial moves that could pave the way to a brighter future.
Georgina Taylor writes about personal finance with a focus on retirement. She is a personal finance consultant who works with people aged 50 and over to make sure their retirement goes right.