5 Fast Steps To Take Control Of Your Finances In 2021

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Feel like you’re drowning in debt? Overwhelmed by all the many bills to pay? Not sure if you should pay your credit card minimum? Hey, we know what that’s like.

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So we’ve come up with five simple steps to re-charge your outlook on your finances, and get you on track to a healthier, wealthier you…

1. Improve Your Credit Score

If you’re like a lot of us, you probably don’t track your credit score. We get it. After all, nearly 54% of Americans never check their credit scores. It’s normal.

But why is it important to know your score, really?

Having a good credit score could likely help you save money on things like your mortgage, your car insurance, your credit cards and many other things. On the flip side, a bad credit score can cost you the same amount in added expenses.

We recommend using free apps like Credit Sesame, or LendingTree to check your score regularly.

And if you have no credit history – you should start to immediately begin building your rating by using apps like Self, which helps you build your credit responsibly.

2. Pay Off Debt Faster

Once you know your credit score, your immediate options become much clearer.

For instance, if your score is higher than 660, then you might want to check out Tally, which pays off all of your credit cards at once, and simply allows you to make one much lower payment each month.

On the other hand, if your score is lower than 660, you may want to check out TrueBill, which will help reduce your bank fees, cancel your unused subscriptions, and even lower your cell phone and cable bills.

Again, if you have no credit score, you need to start building one. Until then, try applying for a personal loan through Credible. Loans up to $100,000 at rates as low as 3.99% APR may be your best option.

We’ve also written extensively about how to reduce your high interest debt by using balance transfer credit cards here and here.

3. Reduce Your Tax Burden 

There are numerous ways to lower your tax burden – everything from FSA to HSA contributions, from 401k’s to 529 plans, and traditional and Roth IRA’s.

One of the best ways to do so is by investing in your kids’ college education. It’s now easier than ever thanks to apps like UNest, which allows you to invest as little as $25 per month from your phone, and savings potential of up to $2,200 per year.

And investing in a Roth IRA can be just as easy using anyone of a number of great social investing apps, like Sofi & Public (see our recent Top 7 Social Investing Apps).

4. Save Money On Everyday Expenses 

Reducing your overall expenses is a necessary and difficult step. But it has to be done. Period.

After all, spending more than we earn is how we get into debt in the first place. However, it’s easier said than done, and the reality of life is that we still have essentials to buy and get us through each day – from food to clothes, toilet paper to gas, somethings we just cannot go without.

So why not find the best possible deals, and even get rewarded for buying the things we need?

That’s where apps like Dosh, Fetch, and Ibotta can be very useful. Checkout our full list of the best shopping rewards apps.

5. Earn More Money 

Okay, it seems a bit obvious, but again the math is simple. Spending more than we earn each month is the fundamental reason we accumulate debt in the first place. And while saving money and reducing our overall expenditures is half the battle, the fact is if we could just increase our monthly earnings we could pay down debt that much faster.

Aside from asking our bosses for a raise, or looking for a higher paying job, adding a couple fun side gigs can be an easy way to boost our earnings and subsidize our debt reduction efforts.

Check out our list of 13 Side Gig Apps For 2021 and start earning easy money!


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