Daylight Saving Time gives us an extra hour to do whatever we want. Will you sleep in or will you use this time to save some money? Financial professional Brad Allen talked with Milwaukee’s WTMJ-4 and has 5 things you can do in 60 minutes or less that will save you big time down the road.
60 Minutes To Save
1. Create a Holiday Budget – We need to be proactive to avoid racking up debt over the holidays. Make a list of who you need to get gifts for, how much you want to spend and any other items you might need for the holidays like decorations and food. Then take that list with you while you shop!
2. Organize Your Accounts – Do you know where all your money is? A lot of people have multiple accounts or even use multiple banks. This year, take that extra hour to take inventory of all your financial accounts. You should make a list with the type of account, information on how to access it, the account holder and the contact information.
3. Deal with Debt – The average American with credit card debt owes more than $16,000. It’s very easy to feel overwhelmed, but that’s why it’s so important to organize your debt and create a plan to pay it off. Organize your debt by the account, total amount due, interest rate and monthly payment. Then attack the lowest balance first while making minimum payments on the rest. Once you get that first account knocked out, you’ll have the momentum to keep going.
4. Plan for Taxes – We all dread tax season, so why not get a head start this year? Use those extra 60 minutes to get organized. Get folders for all your income, expenses and deductions and your investments. You may need to add categories in the folders depending on the different sections you need. For example, in your deductions folder, create sections for medical, charity and business. File these away now and then keep it going throughout the year.
5. Start an Emergency Fund – An emergency fund is like a safety net. I recommend my clients have at least 3-6 months’ worth of savings in the bank. A recent survey shows that 69-percent of Americans have less than $1,000 in their savings account and 34-percent of people have no savings account at all.