These financial questions are so common they are asked almost daily.
Finance is a complex and ever-changing topic, so it’s no surprise that people have a lot of questions about it. Here are the top 3 most commonly asked financial questions:
How do I save more money?
This is a question that many people struggle with. There are a few simple things you can do to start saving more money. Create a budget and track your spending. This can be as simple as saving your receipts and adding them up by the week, month, or year. The same can be accomplished by creating a spreadsheet in a notebook or in a computer program. The last way to track is for more tech-savvy and by using technology help by tracking through free or paid apps on your smartphone. This will help you see where your money is going and where you can cut back.
Then set up a savings account and make regular deposits. It is proven that if you save systematically through automatic deduction, you’re more than likely to succeed than waiting until the end of the month to save what is left over. This holds true even if you can only save a small amount each month, it will add up over time.
Finally, look for ways to reduce your expenses, such as cooking at home more often or canceling unnecessary subscriptions. Comb through your credit card transactions or checkbook register to help find items or areas that can be cut back on.
How do I improve my credit score?
Your credit score is a number that lenders use to assess your creditworthiness. A higher credit score means you’re a lower-risk borrower, which can lead to lower interest rates on loans and other financial products. There are a few things you can do to improve your credit score, such as paying your bills on time, keeping your credit utilization low, and disputing any errors on your credit report. Don’t use a credit card unless you can pay off what you are putting on the card each month.
A quick credit score tip: As you work on your budgeting from the first question and paying off credit card debt. Once your credit card is paid off, It is better to keep unused credit cards open and not used than to close them out.
How much do I need to save for retirement?
The amount of money you need to save for retirement will depend on a number of factors, including your age, health, income, taxes, and lifestyle. However, there are a few general guidelines you can follow. For example, the rule of thumb is to save 10% of your income for retirement. If you start saving early and invest your savings wisely, you’ll be well on your way to a comfortable retirement. Remember that everyone’s number is different because of all these factors.
Lifestyle is usually the largest factor during retirement. Many people will wait until retirement to travel more frequently, travel for longer periods of time, cross items off of the proverbial bucket list, and or potentially move to another part of the county or vacation home. Sometimes family is the reason for relocation, warmer climates for aging bodies, or just a new start for a retirement phase of their life. All those items can have a dramatic effect on budget and retirement account balances.
As retirees age, health tends to affect many facets of life and lifestyle. For the vast majority of us, usually the older we get the less we do and spending slows at older ages. However, spending needs to be delicately set up to afford to do the things when young and healthy, but also consider that you don’t want to run out of money in the case that you are still healthy and physically able to keep on doing things.
Hiring a Financial Advisor is recommended. Advisors are trained to help answer these important retirement questions. Managing your finances can be challenging, but it’s important to take control of your money so you can reach your financial goals. By asking questions and learning more about personal finance, you can make smart financial decisions that will benefit you for years to come.