7 Ways To Repair Your Finances in 5 Minutes
Written by
Jennifer Taylor
Edited by
Zuri Anderson
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Overhauling your finances might be easier than you think. Financial woes can feel daunting, but a few quick changes could make a huge difference.
Whether you’re looking to find more room in your budget, pay off debt or save more money, you can be on the path to achieving these goals in a matter of minutes.
Keep reading to learn seven ways to mend your financial situation in just five minutes.
Cancel Unnecessary Subscriptions
Scan your credit card statements for recurring transactions and really think about whether you’re using all the streaming services you’re paying for, said Noah Damsky, chartered financial analyst (CFA) and principal at Marina Wealth Advisors in Los Angeles.
“If you think you may still need it, cancel it and give yourself the opportunity to resubscribe if you find that you have to it,” he said.
Shop Insurance Coverage
Check the price, deductibles and limits of your insurance policies, Damsky said.
“Find a trusted, local insurance broker who isn’t affiliated with only one brokerage firm,” he said. “Shop your coverage every couple of years so you’re getting competitive rates.”
Insurance policies are designed to fit your needs, so this is an opportunity to make sure your coverage is still appropriate.
“Given inflation over the last few years, evaluate whether you need to change deductibles or raise limits, such as on dwelling coverage on your home,” he said.
Unsubscribe From Unwanted Retailer Emails
If your inbox is bombarded with emails from retailers offering discounts and promoting their latest products, Damsky said to unsubscribe.
“These emails are meant to get you to spend money on things you don’t really need,” he said. “Unsubscribe to declutter your inbox and save yourself from unnecessary spending.”
You can’t be tempted to spend if you don’t know about these promotions.
Automate Your Savings
It’s easy to tell yourself you’ll save what’s left in your account at the end of the month, but it can be much harder to actually have money left over. Paying yourself first can be a game-changer.
“Automate your savings to occur right after the direct deposit from your paycheck hits your account,” said Filip Telibasa, certified financial planner (CFP), owner and planner at Benzina Wealth in Sarasota, Florida.
“This way, it comes out first before any frivolous expenses.”
Open a High-Yield Savings Account
“Open a high yield savings account and keep at least three months of expenses in it for an emergency fund,” Telibasa said. “If you have this in place, you are less likely to accumulate debt, as you have funds set aside for a rainy day.”
Not only will you be financially prepared, you’ll also be racking up interest payments.
Prioritize Eliminating High-Interest Debt
“Focus all your resources — cash flow — on paying down high interest rate debt — anything with a rate above 10%,” Telibasa said. “This means turning off other savings, if needed.”
Paying off high-interest debt may take years, but creating a plan to do so can be done quickly and easily.
“The idea is that you cannot earn more than the 10% you are paying on the debt consistently, so you are losing money overall,” he said.
Think Twice Before Buying
“Consider how long you will use an item you purchase as a consumer,” Telibasa said.
He said to think about whether it makes sense to pay a little more upfront, if it means being able to use the item for a longer period of time. This can save you money in the long run, because you won’t have to quickly replace an item that was cheap in more ways than one.
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Sources
- Noah Damsky, Marina Wealth Advisors.
- Filip Telibasa, Benzina Wealth.
