5 Ways To Improve Your Finances in 5 Minutes or Less
Written by
Gabrielle Olya
Edited by
Ashleigh Ray
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Taking control of your money and setting yourself up for financial success doesn’t need to take a great amount of time or effort.
There are a few simple moves you can make to improve your finances that can be done in a matter of minutes.
Here’s a look at five ways you can improve your finances in five minutes or less.
Automate Your Savings
Setting aside money for short- and long-term savings goals becomes effortless when you automate the process.
Set up automatic contributions from your paycheck to a savings account and a retirement account, and you’ll be tracking toward your financial goals without having to think about it again.
Once your automatic contributions are set up, you can spend any additional income without having to worry.
“Save 10% of pay in savings and another 10% in retirement, and spend the rest,” said Gabriel Shahin, CFP, founder and principal at Falcon Wealth Planning, Inc.
Break Out the Calculator
To make sure you are not overspending with what’s left over, do some quick math.
“Calculate [the total cost of] necessary bills like rent, utilities and loans,” Shahin said. “Then, calculate net take home [pay]. Forecast [what’s] left over and that’s what you can spend on fun, restaurants and groceries.”
Taking a few minutes to calculate this number can help you make sure you’re not spending more than you have, which can lead you to take on debt.
Double-Check Your Retirement Savings Goal
Many Americans fear that they will not save enough to retire comfortably. To ensure you will have enough, set aside a few minutes to actually do the math.
“Calculate if your current standard of living would keep you happy long term,” Shahin said. “Back into how much you need to save based on when you retire to make sure you are on track for your retirement goals.”
Having a number goal in mind can help you calculate how much you should be saving for retirement to keep you on track.
Look for Recurring Expenses You Can Cut
One quick way to find expenses you can cut if you are looking to save more towards your goals is to review your credit card and bank statements to find subscription services and other recurring costs that you may not need.
“Remove any unnecessary expenses like Netflix [subscriptions], gym [memberships], upgraded cell coverage and so on,” Shahin said.
Check Your Credit Report
One more financial statement you should review is your credit report. Check for any errors that could potentially be dinging your credit score. By alerting the credit bureaus of these errors, you can improve your credit score without much time or effort.
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