39 Ways to Improve Your Personal Finances

Inflation. It’s just one word but it can strike panic in the hearts—and budgets!--of consumers. This year has been a tough one for all of us and a common question we hear is “How can I make my money go further?”

With the gift-giving season just around the corner, this is a valid concern. There are a lot of small ways to adjust your spending like cutting back on unnecessary expenses (this may mean pausing the morning coffee run for a while), shopping for the holidays earlier than you normally would and, of course, watching for sales.

This year, there have already been pre-Black Friday sales from several of the big box stores and there surely will be more to come. Keep yourself in the loop by following the stores and brands you like on social media—you just may score a great price on your holiday gifts!

These money-saving tips may be small—remember, they all add up!—but it can be difficult to find the courage to take a closer look at our finances and commit to making bigger changes.

A good first step is to give yourself permission to take 15–30 minutes each week to focus on your budget.

Maybe you don’t know where to start or what the next step should be. At Mountain America Credit Union, we’ve got you covered. Here are 39 financial guidelines, in no particular order, for you to consider. Browse through each to determine if there’s room for improvement or if you are good to go:

1. Get your overspending under control. No matter what your financial goals are, developing and sticking to a spending plan is the key to achieving them. People tend to have a lot of feelings about money, and these feelings often translate into spending more than we should. So, whether it’s the flashy advertisements that you can’t resist or maybe an underlying desire to keep up with the neighbors, take the first step to financial freedom by reviewing areas where you’re spending too much.
    

2. Create a new budget. Of course, no amount of planning can account for every expense that may come your way. Some things to account for include holidays, birthdays, school year expenses or special activities and how your income may fluctuate seasonally.
    

3. Find a budgeting app you like. Successful budgeting doesn’t happen overnight. Long-term success requires a system. Choose the system you prefer—spreadsheet or app, manual or automatic—and give it a try. If you’re ready to try an app, there are many to choose from—Mint, You Need a Budget, Goodbudget. Download one and use it for a couple of weeks. If it doesn’t work for you, try something else. Don’t forget to check your financial institution’s mobile app. You may have access to budgeting tools already and not even know it.
    

4. Make a will. This is one of the most important pieces of your estate plan. Many people think they don’t need a will because they don’t have a large estate, or they think they’re too young to worry about it until later. A will is the best way to ensure your wishes are carried out after you’re gone—no matter how much money you have.

    

   When it comes to the timing, not all of us get a heads up when our time is near, so taking care of this estate document now is more important than ever. Revisit it annually or when you experience significant changes—marriage, children, new assets, etc.
    

5. Protect your savings from inflation. High rates of inflation don’t just affect necessities like gas and food. They can put a dent on your savings, too. Consider incorporating strategies to mitigate the losses like diversifying your investment portfolio, building skills for a side hustle or working toward a promotion or raise to keep up with the costs.
    

6. Prepare for rising interest rates. What can you do to save when the U.S. Federal Reserve raises interest rates? If you have a variable rate mortgage, consider refinancing. This will lock your payment in at still-low rates without being subject to raises (or reductions). If you’re planning to borrow money, do it now before the rates have a chance to get too high.

    

   Increased interest rates also mean a higher return on savings and certificate accounts. Learn how to use a laddering strategy to maximize your earnings.
    

7. Prepare now for your next major life event. What’s next on your radar? Marriage? New home? Retirement? Whatever it is, do your research to find out how this change can affect your finances. For those getting married? Take the time to sit down with your partner and discuss financial goals, current debts and your budget strategy. You may also want to talk about a prenuptial agreement to protect your assets. Having a child? Now’s the time to set up college savings accounts, research childcare options and costs, and review your paid family leave benefits.
    

8. Boost your retirement savings. If you are not currently saving for retirement, start now. If you’ve already started, consider saving 1% more. Small increases like this can lead to significant returns later without negatively affecting your budget now.
    

9. Get ready for tax season. Maybe your tax bracket has changed or you started a new business. If you worked remotely last year, there may be additional tax implications to consider. Do your research—or speak with a tax professional—to see what tax changes may apply to you.
    

10. Find out if cryptocurrency is a good fit for you. Cryptocurrency isn’t going anywhere, so it’s worth learning more about. And it’s not just about which cryptocurrency to invest in—you need to know the best way to protect your assets, too. That may mean you need to create an estate plan specifically for your digital assets. There are a couple different schools of thought as to the best way to secure the string of numbers that act as your key to these investments. Be sure to include this on your list of topics to discuss with your financial advisor.
     

11. Learn from your past. In your quest to plan for the future, it’s always a good idea to investigate the past. Reflect on your spending and saving over the last year to gain insight into how the next 12 months might go. For example, after the challenges posed by the pandemic, you may realize that you’re more interested in beefing up your emergency fund or further diversifying your investments in case a similar crisis comes along.
     

12. Start saving for college with a 529 plan. Can you imagine what college tuition will be when your new bambino reaches the age of 18? It’s almost inconceivable! That’s why a 529 plan is a great way to start saving now. These funds are not just for university tuition—they can also be used to pay for elementary or secondary school tuition, community college, technical training, off-campus housing or even food and meal plans.
     

13. Commit to a debt-repayment plan. The best way to repay your debt depends on how your financial goals are prioritized. If you’re focused on reducing the amount of interest you pay, try the avalanche method—focus most of your money on the credit card with the highest interest rate while paying the minimum on everything else.

     

    However, if you’re more interested in getting some quick wins under your belt to stay motivated, the snowball method may be better for you. This is when you focus most of your money on the credit cards with the lowest balance. Before you know it, you’ll make some quick payoffs and reduce the number of bills you pay each month!
     

14. Approach money trends and fads carefully. It’s important to be aware of how the latest money craze works, but you don’t have to take part in every trend. Instead, choose your money management path by evaluating your specific needs and income limitations. So, whether it’s exchange traded funds (EFTs), non-fungible tokens (NFTs) or some other new-fangled investment, be sure to do your research before jumping into the deep end.
     

15. Designate a power of attorney. Another important step in preparing your estate plan, the power of attorney allows another person to act entirely on your behalf financially in the event of injury or incapacitation. They will have access to your money and will be entrusted to pay your bills, cash your checks, trade your investments and sell your property as you would have wanted. Additionally, they will have the ability to make your legal (and sometimes medical) decisions as well.
     

16. Gift money to your children now. Not only is it fun to give your kids money, it can also be a wise move for tax reasons. Consider creating a giving plan but be sure to discuss it with a financial professional to avoid undesirable tax implications.
     

17. Give to charity. If you’ve ever given to charity, you know it can be very rewarding. Not only personally, but also when it comes time to do your taxes! Research your chosen charities thoroughly before giving and talk with a financial professional about the available deductions.
     

18. Contribute more to your emergency fund. Your emergency fund shouldn’t be extra money in your savings or checking account. Open a specific account for this purpose and make sure it’s fluid (not bound by terms that will result in penalty fees if accessed early). Focus on building your emergency fund up to six months’ worth of expenses. If you’ve already been contributing to an emergency fund, consider bumping up the amount by a few dollars each paycheck to reach your goal faster.
     

19. Ask for a raise. If your responsibilities have increased at work or you’ve received positive feedback, it may be time to ask for a raise. Many companies are experiencing staffing shortages. If your company is in this boat, they may be willing to pay more for loyal and productive employees. Determine how much of a raise to ask for and then decide how to approach your boss or manager—be sure to have plenty of good performance examples to support your request.
     

20. Quit a toxic job. If you’re stuck in a job that doesn’t work for you—low pay, bad hours, poor morale—make a plan to quit. If this sounds familiar and you’re ready to make the move, brush up on your interviewing skills, update your LinkedIn profile and resume, and connect with mentors and friends. Most importantly, build up your savings or have a new job offer in place before you quit.
     

21. Get a credit card with better rewards. Credit card promotions can be hard to resist. But, when you’re looking for a new rewards credit card, you have to compare everything, not just the rate. Do you earn rewards points on things you purchase often? Are there annual fees? Read the fine print and choose a credit card that is the most rewarding to you.
     

22. Focus on building wealth. Building wealth requires strategy and time. Invest your money and stay invested. Don’t jump in and out of the stock market every time it goes down. Don’t leave money on the table when it comes to your company’s 401(k) offerings. If you get matching funds, make sure you’re contributing enough to max out that free money! Borrow thoughtfully and regularly monitor your accounts.
     

23. Calculate your net worth. Knowledge is power. When it comes to staying on track for your retirement savings, having a full financial picture is key. That’s why knowing your net worth is so important. Calculate it annually to make sure you’re contributing the right amount to your 401(k) or IRA. How do you get it? Net worth is equal to assets (cash, stocks, cryptocurrency, real estate, etc.) minus liabilities (debts like a mortgage or car loans).
     

24. Protect yourself from fraud. It’s scary to know there are scammers whose sole purpose is to get people to give up their personal account information. But that’s the reality. There are a lot of things you can do to protect your digital banking accounts. Start with making sure you use a financial institution that prioritizes security. It’s also important to know how to recognize fraud so you can avoid it. Make sure you regularly monitor your accounts and set up alerts. This way, if it does happen, you can catch it quickly and minimize the damage.
     

25. Maximize a health savings account (HSA). These accounts are so attractive because of the triple tax benefit. The money is tax-deductible when you add it to your account, it grows tax-free and then the funds can be withdrawn, penalty free, for any qualified medical expense. HSA accounts are not subject to a “use it or lose it” rule, so you can pay into it while you’re working and then use the money for medical expenses after you retire. You can even use these funds for non-medical expenses, after turning 65, with no penalty.
     

26. Start a side hustle. Moonlighting in your spare time can not only help your budget, it can also lead to a better job down the road—or, if you’re doing well, you may find it’s time to make the leap and go full-time with your own business. If you’re not sure what you could offer, there are plenty of websites offering opportunities for freelancers to make a little quick cash. Sites like Fivrr and TaskRabbit list requests for help with one-off projects—everything from designing a logo to moving furniture to writing a speech.
     

27. Don’t leave money on the table with your employer. Benefits from your employer include more than just a 401(k). You may also have access to life insurance, dental insurance, help with legal fees, mental health and substance abuse support and commuter benefits. Research all the options available from your employer.
     

28. Automate your bill payments. How many times have you had the funds to pay your credit card bill but missed the calendar reminders until it was too late? That mistake just cost you a $35 or $40 late fee, plus the interest on the carried balance. Avoid adding more to your debt by budgeting carefully and then automating the payments. Remember to check in with your accounts regularly to ensure you have been charged correctly.
     

29. Finally cut the cable. With all the available ways to stream your favorite shows, this is an expense you just don’t need any more. Between streaming services like Netflix and AppleTV and app-based TV options like Sling and YouTube TV, you can pretty much create a suite of products that fit your watching style and costs less. Just be mindful of the total amount you’re paying for your streaming and TV services—you don’t want to cut the cord only to end up paying the same or more.
     

30. Automate your savings. If building wealth effortlessly is high on your to-do list, then automating regular deposits into your savings or investment account is a great first step. It’s so much easier than remembering to move the money manually every paycheck. And there’s less danger of finding something else to spend the money on if you don’t have to actually touch it (digitally).
     

31. Review your subscriptions and memberships. Look through your credit card statements for the past year to get a list of recurring monthly or yearly payments. Whether it’s for a streaming service, a gym membership or mail order styling service, only keep it if you are truly using it. Otherwise, cancel it and cut it out of your budget.
     

32. Make a regular date to talk about money. Money can be complicated. It’s hard enough to be honest with yourself about your relationship with money, let alone sharing those feelings with your partner. However, talking more openly about money can be liberating—and beneficial! It’s much easier to achieve your financial dreams when you share the same goals. The more you talk about money, the easier it is.
     

33. Ditch the extreme money strategies. Just like with a crash diet, making drastic changes can work for a short while, but most people find it impossible to sustain. A better option is to make small changes like reducing your spending by 10%, saving more purposefully or choosing to only buy things you truly need and enjoy. Try enlisting the help of a budget buddy—someone to help keep you accountable to your strategies and goals.
     

34. Learn to cook. We all know that dining out is a budget killer! Save money by learning to cook. Stretch your budget even further by cooking large batches and meal planning for the week. You never know, you may uncover a hidden talent!
     

35. Challenge yourself to learn something new about finances. Every week, expand your knowledge by learning more about a particular financial strategy. Interested in investing but have no idea where to start? Check out a podcast, newsletter or book on the subject.
     

36. Try a money challenge. Different from extreme money tactics, these challenges are shorter in length or simpler in philosophy. For example, try a month of pantry dinners—vow to only buy fresh items from the store for a month and supplement them with items from your pantry or freezer. This is a great challenge to turn over the food while saving money.

     

    Or, try a modern take on the “keep the change” challenge—download an app like Acorns which will round up every purchase to the nearest dollar and invest that spare change into a diversified portfolio. Try that for a year and see how much you can save.
     

37. Review your insurance coverage. Insurance isn’t a one-and-done kind of situation. It’s something that needs to constantly be tweaked and updated. Take life insurance, for example. Big life changes, like marriage or children, mean updates in your life insurance. You want to make sure these new people in your life are taken care of in the event of your passing.

     

    Auto insurance is another one. You should shop around and compare pricing annually to make sure you are getting the best price for your needs.
     

38. Define your money goals. Everyone has financial goals. Whether it’s for a trip of a lifetime, paying off your debt or buying a new car, it requires a plan. Successful financial planning is full of small steps that get you closer and closer to your ultimate goal. Take time to set SMART goals, then break down those goals into small, consumable bites.
     

39. Meet with a financial professional. Some people think talking with a financial advisor is only for someone with a large bank account or a lot of assets. But that’s just not the case. The experts at Mountain America Credit Union are here to help all our members.

If you have questions about how best to catch up on retirement savings, or how to get into your first home, we can help guide you to achieve your financial dream. Check in with your financial professional annually to make updates.

We know this is a lot! But remember … you don’t have to do everything on this list. Choose a few things to focus on now. Then, once you’ve got them incorporated, choose a few more. Pretty soon you’ll have an efficient budget and financial plan that works for you.

If you’re looking for more help with financial planning, contact Mountain America Credit Union. We have financial guides and experts who can show you everything from the basics of budgeting to planning for retirement. Schedule an appointment today!