What does it mean to be financially empowered? Well, a person who is financially empowered is both informed and skilled when it comes to their finances. They understand how they spend their money, make wise financial decisions, and have access to resources to help them reach their goals. Are you one of these people?
If not here are a few tips to help you get started.
Prepare for Surprise Expenses
Most people know the unexpected will happen eventually — yet few plan for it. Boost your financial empowerment by knowing you can deal with whatever life throws at you. This could be through establishing a saving account and setting up an automatic electronic contribution, based on what you can afford, from each paycheck.
When you have money set aside for life’s surprises — whether it’s a flat tire, a broken furnace or a medical emergency, they no longer have the power to send your budget into a tailspin.
Pay off Debt
Pay off debt by either paying debt that has the highest interest rate first or pay the smallest debt with the largest payment possible, until paid off. Be sure to incorporate debt repayment into your budget. You should always pay more than the minimum balance on credit card bills. This will help you pay off the debt sooner.
Pay Bills on Time
Pay your bills on time to help you build good credit and avoid expensive late fees. Create a bill payment calendar to help keep track of due dates, enroll in automatic bill payment or signup for text message reminders so you don’t forget to make timely payments. Negotiate due dates to help match your payday.
Leverage Free Money
If your employer will match your workplace retirement contributions, pay for your continuing education and professional development, provide coffee, snacks or meals, or offer to subsidize your wellness with discounted health programs or gym memberships, take them up on it! Financial empowerment is knowing your worth; utilize all the perks an employer is willing to provide.
Monitor Your Credit History and Score
Financial empowerment means knowing what’s in your credit history and how it impacts your credit score. With that insight, you can make deliberate choices about how to use credit as a tool that benefits your financial life. Start monitoring your credit score. The higher your credit score and more positive and established your credit history, the more options you may have when it comes to the types of creditors and lenders you want to borrow from, and on what terms.
Back At You
Do you even care about all this stuff? Or are you already one of these people? Do you consider yourself a financially empowered person? If so, share any tips down below and we will publish the best ones in an upcoming article.