One of the most frequent questions I get is, “what are some things I can be doing to become more financially secure?”
I love hearing this because it means you are looking to make a change. You want to improve your life and become financially independent.
Luckily improving your finances isn’t difficult, but it does take time and a little work. Let’s dig into some of the big money moves you can make today.
1. Start hustling
If you’re looking to increase your wealth, one of the easiest ways is to start making more money. Yes, you could push for a raise at work or you could start hustling.
How often do you find yourself binge-watching a new show on Netflix? My wife and I are doing it all the time. Use that time to make a little extra money with online surveys. One of the best survey companies right now is Survey Junkie. They have 6 million members and pay out earnings almost instantaneously through Paypal.
Inbox Dollars is another company I love. You’ll receive $5 when you sign up and you can get paid for doing simple things like shopping online, reading emails, searching the internet, and more.
The gig economy has opened up a lot of new opportunities to make money. Do you have a car that you love to drive? You could sign up to become a Lyft driver and make extra cash driving people around. They are even giving away $300 just for signing up.
DoorDash is another way to make a little money on the side with your car. If you’re not familiar with DoorDash it’s a food delivery app. Similar to driving for Lyft, you have the ability to set your own hours and you get paid after you pick up and delivery to food order.
2. Budgeting your money is a crucial step
You will never be able to fully change your situation until you have an understanding of how your money moves each month. Many of you probably know exactly how much money you make. But I find a lot of people don’t understand where that money goes every month.
Everyone needs to set up a budget. This will give you the ability to track every dollar that comes in and where it goes.
I love using Personal Capital for my families budget. Their budgeting tools allow me to track our monthly cash flow. I can set monthly spending targets and follow along during the month to see how we are tracking against our goal.
3. Sign up for an online saving account
A must-have for anyone is an emergency fund. If an expense pops up unexpectedly, you can rest easy knowing you have the money available to cover it. This account needs to be as liquid as possible so a savings account is your best option.
Unfortunately, most savings accounts come with rock-bottom interest rates. Going with an online savings account will actually give you a decent return. My wife and I have our emergency fund in a high-yield savings account at CIT Bank.
They offer a 1.55% APY and you can open an account with just $100. But the best part is the account comes with no fees.
4. Start trimming your expenses
We all want to be able to earn more money, but cutting some of the expenses that we don’t need can be just as valuable. By eliminating some of these things you don’t need or use and you can put yourself in a much better place financially.
You can use a service called Trim. They will analyze your accounts and find recurring subscriptions that you no longer utilize. Canceling subscriptions isn’t the only thing Trim does for customers. They can also negotiate with service providers like cable and internet as well as help you find lower insurance rates.
Over the past month, they have helped their customers save over $1 million. The best part is that you can sign up for FREE.
5. Refinance your credit card debt
Debt is the biggest obstacle holding people back from financial independence. Being able to successfully overcome the debt hurdle, you can accomplish just about anything.
Due to recent interest rate hikes by the Federal Reserve the average credit card interest rate sits at an all-time high of 16.99%. With rates that high, it can take years before most people will be able to completely pay down their debt.
Refinancing debt can be a great option and could help you save thousands of dollars. Companies like Credible.com will allow you to refinance at rates as low as 4.99%.
6. Student loan debt must go
Even if you don’t have credit card debt, many of you probably have student loans that you’re still paying off. Credible.com can help you with those as well. In fact, they help save the average Credible user nearly $19,000 over the life of the loan.
The idea of being free from student loan debt probably sounds pretty good, doesn’t it?
7. Understanding your credit
Your credit is one of the most important pieces of your financial makeup. Your score has a direct impact on the rates you receive when you finance things like a home or a car. The better your credit score, the less the item is going to cost.
I always recommend signing up for Credit Sesame. They offer your credit score for free as well as credit monitoring. If something within your credit profile changes, they will notify you. Maybe it’s a new credit card account or you have a balance that’s past due. These things can affect your credit and you need to be aware.
8. Don’t leave money on the table with your 401k
Many of you probably have a 401k with your employer. And hopefully, you’re taking full advantage of any match they offer. But there’s a chance you might be leaving money on the table.
Blooom will analyze and optimize your 401k for FREE. They will make sure you’re properly allocated, find any fees that might be holding you back, and help set you up for a more comfortable retirement.
9. Rent out your home for income
If you have an extra room or an entire house, Airbnb is one of the best and easiest ways to make a little extra money by renting it out. You could make a few hundred dollars per night from your home depending on the size and location.
Make sure you sign up for Airbnb and start making a side income from your extra space.
10. Investing outside your retirement accounts
Investing within a qualified retirement account is important when setting up your financial future. However, it shouldn’t stop there.
We all know that savings accounts provide us with very little income. I always tell people to use them for emergency funds, but nothing else. Instead, put your extra money to work for you.
One of my favorite services right now is Acorns. You can connect your financial accounts and with each purchase you make, they will round up to the nearest dollar amount. That difference is then invested in a diversified portfolio. It takes less than five minutes to sign up and well worth every second.
You can also take it a step further and sign up for an account with Ally Invest. There are a lot of investment companies available, but this is one that I really like. Trades start at just $3.95 and you can invest in stocks, mutual funds, ETF’s, options, and more.
