When you finally do sit down to think about it, you immediately become overwhelmed. Which goal do you attack first? You need a budget, a savings plan, a debt-repayment strategy, a better credit score, a plan for retirement and… oh, you’re running away again, aren’t you?
Calm down and come back. To tackle big goals, you have to start small.
Simple Money Management Steps to Take Today
Here are a few simple tips you can take today to get your finances under control and start working toward a healthier financial future.
1. See How Your Finances Stack up to Your Peers’
How many of you just cringed?
Most of us don’t have friends — or even family members — who are willing to talk explicitly about these numbers.
Status Money is an app that allows you to anonymously compare your financial situation with your peers without asking those awkward, prying questions. Link an account to tap into this database and you’ll be able to compare your income, debt, interest rates, credit score, spending… you name it.
By seeing how others are doing, you can see what you need to work on — or where you can sit back a little and just breathe easy.
2. Find out Whether You’re Paying Too Much for Car Insurance
Have you shopped around lately? Have you compared rates from the 20 largest auto insurers that do business in your area? That sounds kind of difficult and time-consuming, doesn’t it?
Fortunately, a service called Gabi will do it for you, and you don’t even have to fill out any forms. Simply link your insurance account and provide your driver’s license number, and Gabi will go to work.
Once you link your insurance account to Gabi, it will:
- Scan your existing insurance plan.
- Analyze what coverage you have.
- Compare the major insurers’ rates for that same coverage.
- Help you switch on the spot if it finds you a better rate.
Gabi says it finds an average savings of $720 per year for its customers.
It is a true apples-to-apples comparison at the same coverage levels and deductibles you currently have. Once you sign up, you never have to shop again. Gabi’s software has your policy on file and keeps on monitoring for savings as your life changes.
3. Have a Cup of Coffee and Assess the Damage
Banks and credit card companies aren’t the only ones that look at your credit score. You’ll have to authorize a credit check when you want to move into a new apartment, rent a car with a debit card or buy a new phone.
That’s why we always suggest starting with a peek at your credit score — specifically from somewhere that can let you know if there’s anything to be concerned about.
Even better if it’s free.
The credit report card from Credit Sesame does all that, and it’s free. The report lays out all your unpaid debts, any delinquencies and steps you can take if you want to improve your credit score.
You can also opt to receive alerts when your your credit score rises or falls so you can take necessary action (or celebrate with a happy dance).
4. Take 10 Minutes to Protect Your Family’s Future
However, securing life insurance is an important financial move, especially if you’re married, have kids or are in your prime earning years. It pays your dependents when you die, which can help pay for your funeral, mortgage or other debt.
So if “get life insurance” has lingered on your to-do list far too long, take the next 10 minutes to figure itout. Don’t worry — it’s way easier than you think.
A company like Policygenius offers you an easy way for anyone to compare and buy life insurance. The search engine allows you to compare policies and get instant quotes. Once you find the right fit, you can apply right online.
If you’re young and mostly healthy, consider purchasing term life insurance online from Ethos. It partners with a major A-rated life insurance carrier to provide policies for a low price. For example, $30 a month could get your family $1 million of coverage.
Anyone, including independent contractors, can secure term life insurance through Ethos without a medical exam or extensive paperwork; just fill out a digital application.
5. Invest in Real Estate (Even If You’re Not Wealthy)
Want to try real-estate investing without playing landlord? We found a company that helps you do just that.
Oh, and you don’t have to have hundreds of thousands of dollars, either. You can get started with a minimum investment of just $500. A company called Fundrise does all the heavy lifting for you.
Through the Fundrise Starter Portfolio, your money will be split into two portfolios that support private real estate around the United States.
This isn’t an obscure investment, though. You can see exactly which properties are included in your portfolios — like a set of townhomes in Snoqualmie, Washington, or an apartment building in Charlotte, North Carolina.
You can earn money through quarterly dividend payments and potential appreciation in the value of your shares, just like a stock. Cash flow typically comes from interest payments and property income (e.g. rent).
(But remember: Investments come with risk. While Fundrise has paid distributions every quarter since at least Q2 2016, dividend and principal payments are never guaranteed.)
You’ll pay a 0.85% annual asset management fee and a 0.15% annual investment advisory fee.