There are certain things in life you want to consistently re-evaluate. Your hairstyle. Your taste in decor. And, of course, your finances. From your savings strategy to your investment portfolio and retirement planning, it should all be up for review. Going through your financial situation with a fine-tooth comb today can help ensure you’re prepared for a better tomorrow.
Read More: 8 Generational Wealth Myths That Are Holding You Back
Check Out: 4 Things You Should Do if You Want To Retire Early
The good news is that the process doesn’t have to be painful. Identifying pain points now means you can fix them before they escalate. Think of it this way: The sooner you start and the harder you work, the more likely you’ll be to achieve your financial goals.
Having good — or better, great — credit opens doors to everything from car loans to the rates you’d pay on a mortgage. Simply put, your credit score can impact major parts of your life, including where you can live. Regardless of which stage of life or financial journey you’re in, having good credit means having more choices.
So, how do you bring your credit score up? First, carefully examine your credit report to ensure there are no errors. Next, focus on paying down high-interest debt while keeping your credit card balances low. Working with a financial advisor or credit counselor can also help you develop a personalized plan to improve your credit.
No matter which pop culture financial expert you’ve turned to for advice, they’ll tell you one thing: You’ve got to have a robust emergency fund. Remember the saying about the best-laid plans of mice and men? They all too often go awry. Losing your job, dealing with a car breakdown, facing an illness, or taking on any major unexpected expense can set you back financially — sometimes by years — unless you’re prepared.
For You: I Broke the Generational Cycle of Debt — Here’s How I Did It
You can avoid getting caught in the sticky trap of debt if you have enough money saved to cover anywhere from six months to a year of living expenses. One of the best ways to set up an emergency fund is by using a high-yield savings account and making regular contributions to it. The interest will accrue over time, boosting your savings, and you won’t face penalties for taking the cash out when you need it.
If there’s one thing that’s indisputably a part of life — after death and taxes, that is — it’s debt. Though all debt isn’t created equal, you need to know how much you owe, from car loans to credit card balances. Giving yourself every financial advantage before you sail off into the sunset means paying down that debt.
