The Top Seven Personal Finance Tips 2019
It’s 2019, and you should make it a goal to get your personal finances in order. If you’re not sure where you’d like to start with this goal, you’re in luck. I’ve put together seven personal finance tips 2019 that I’ve tried because I wanted to verify that they work. Follow them, and you could find yourself going into 2020 with a healthier financial outlook!
Get Your Personal Finances in Order by Following These 7 Tips
Personal Finance Tips 2019 One – Consolidate Credit Card Debt
Did you know that credit card debt can be one of the most expensive forms of debt you can have? Cards with high, variable interest rates can add hundreds or thousands of dollars onto your total balance before you pay it off. One fast way to avoid this interest is to consolidate all of your credit card debt with a personal loan. A credit card consolidation loan is an unsecured loan that ranges in price from $1,000 up to $100,000. You typically have between two and seven years to repay it. You pay off all of your credit card balances with the loan. Then, you pay the loan. Don’t use your credit cards while you pay the loan off.
Personal Finance Tips 2019 Two: Use Your Tax Refund to Pay Your Debt
Yes, getting a larger tax refund is exciting. But, you really should use it to pay off your debt instead of extravagant spending. Whether you have credit card debt, student loan debt, or mortgage debt, putting a large payment toward it can help reduce the number of interest charges you pay. You do want to contact whichever agency holds your debt and make sure that your lump-sum payment goes toward your principal balance. Otherwise, they may apply it toward your next month’s payment. If you have no debt, consider starting an emergency fund to plan for any unexpected expenditures.
Personal Finance Tips 2019 Three: Pay Off Your Holiday Bills
The holidays can be an expensive time in anyone’s life, and you could quickly find yourself with a lot of debt left over. For many people, this means charging gifts. You want to pay off any of last year’s holiday debt as quickly as possible. This will help you avoid interest charges. The last thing you want to do is drag your payments out and still pay on it when this holiday season comes around. Put extra payments toward this debt if you’re able to in order to pay it off quicker.
Personal Finance Tips 2019 Four: Invest in a Retirement Account
You’re never too young to start adding to a retirement account. As of 2019, an individual under 50 can contribute a maximum amount of $6,000 to their IRA. People over 50 can contribute a maximum of $7,000. You may want to start smaller and slowly increase your monthly contributions until you get used to living without the additional money. If you can, stick away a little more each year to ensure that you give yourself a comfortable retirement, no matter when you retire.
Personal Finance Tips 2019 Five: Refinance Those Student Loans
Most student loans have very high interest rates, and you may be shocked at how much of your monthly payment actually goes to interest instead of the principal balance. Refinancing allows you to consolidate all of your existing loans into a single loan. This single loan usually has a much lower interest rate, and you only have to make a single payment a month instead of multiple ones. You can pick from a variable or fixed interest. Also, repayment terms vary from 5 to 20 years. Also, review the best credit cards for young adults to build credit for a stronger credit score.
Personal Finance Tips 2019: Six: Schedule Your Vacation in Advance
Typically, most people plan their vacations well in advance. However, the further out you plan it, the better it will be when it comes to managing your finances. Often you can find more travel discounts by planning early. Ideally, you should schedule at least six months out. This gives you six months to put money away to use to fund your vacation. Additionally, it also gives you six months to take the time off work, arrange for a pet sitter if you need one, and get your house in order for when you’re away. This can help reduce your stress levels, and you’re less likely to turn to a credit card for last minute expenses.
Personal Finance Tips 2019 Seven: Transfer to a Zero Percent APR Credit Card
Yes, we just told you not to add any more credit card debt. But, a 0-percent APR card can help with your existing credit card balances. Look into the two best balance transfer cards; check the 0-percent APR terms. They’re usually 12 months. You can transfer your existing balances to one of these cards. Once you do, you’re just paying on the balance. You won’t pay any additional interest charges. Just make sure you can pay off most or all of your existing debt by the end of the promotional period.
Personal Finance Tips 2019 Bottom Line
You can make 2019 the year you start getting out of debt. These seven personal finance tips 2019 can help you reduce your debt, pay less to get out of debt and get you well on your way to a happier and healthier financial future.