12 Quick Steps That Could Improve Your Finances

Introduction

Time is a commodity most of us are lacking. Between work, chores, raising kids, self-care, and hopefully finding a few minutes to unwind before bed, it can be tough to find the time to improve our situation. Particularly when it comes to finances — which, let’s face it, can be even less appealing than working out at your overcrowded gym after a long, tiring day.

The good news is that you don’t need hours upon hours to make some of the moves that could put you on a path to better finances. There are several quick steps you can take that require only minutes of your time to get the ball rolling. And, once you take them, you may be surprised at the momentum you gain to keep things moving — especially if you start to see results.

Here are 12 steps you may want to consider that are easy on your schedule.

Download & Review Your Credit Report

Estimated Time: 30 minutes

Federal law entitles you to a free copy of your credit report from each of the three major credit reporting agencies, but you can now access them every week at AnnualCreditReport.com.

It’s not the getting of your credit reports that could help your finances — it’s reviewing them and disputing any inaccuracies you may find that could give you a boost.

According to a survey by Consumer Reports and WorkMoney, around a quarter of Americans who checked their reports found at least one mistake. And errors that paint a less-than-flattering picture of your credit history could prevent you from getting credit. Or result in you receiving less-favorable terms and higher interest rates, which could cost you thousands of dollars more over your lifetime.

If you do find some mistakes, addressing those credit report errors is going to take longer than 30 minutes. But first you need to know if there’s anything to dispute, which can be done in a half-hour or less.

Research Financial Advisors

Estimated Time: 30-60 minutes

We’re not all good with money. Luckily, plenty of professionals who are good with money can help you develop a plan to improve your financial situation. But first you’re going to have to do a little legwork to find the right one.

The good news is, thanks to the internet, that legwork is relatively painless and shouldn’t eat up more than an hour of your free time. A little research should yield a short list of viable candidates to contact near you. A helpful online resource, like this one from the Wall Street Journal, can help you find the right match.

Start Contributing to Your Retirement Account

Estimated Time: 30-60 minutes

If you’re looking to start building a nest egg for retirement, you may want to consider contributing to a 401(k) plan, if your employer offers one. This is especially true if they match contributions.

If a 401(k) isn’t an option — or if you already contribute to one — you may also want to look into an Individual Retirement Account (IRA), which offers tax advantages. There are two types of IRAs to choose from — traditional and Roth — the major difference being when you pay taxes on your contributions.

Once you decide which type of IRA works for you, and which bank or brokerage firm you’d like to use, opening an account can be done online in 30 minutes or less.

Make a Budget and Take Control of Your Finances

Estimated Time: 60 minutes

If you have no idea what you’re spending in relation to what you’re bringing in as income, it’s nearly impossible to know how much disposable income you have available to pay off debt, save, or invest for your future.

The hardest part of making a budget is actually sitting down and doing it. But once you resolve to dedicate an hour and crunch the numbers, it’s really not rocket science… unless you’re actually a rocket scientist and your paycheck enters into your budget calculations.

Ask for a Raise or Start Looking for a Better Job

Estimated Time: 30 minutes

Cutting back and spending less isn’t the only way to improve your financial picture. Making more money is just as effective.

It only takes a few minutes to ask the boss for a raise — although you’ll definitely want to spend some time before that meeting refining your strategy on getting a “yes” from him or her.

If a raise is out of the question but you still need to bring in more income, it may be time to seek employment elsewhere. Spend 30 minutes checking out sites with job listings like LinkedIn, Indeed, or Glassdoor. If you choose this option, you’ll eventually have to spend time filling out applications, uploading resumes, and writing cover letters, but first you have to do some scouting to see what’s out there.

Apply for or Accept a Credit Line Increase

Estimated Time: 5 minutes

How can a credit line increase improve your finances? Because it could raise your credit score, which, as mentioned in #1, could save you thousands of dollars over the course of your lifetime.

Here’s how. Having a higher credit limit can decrease your credit utilization ratio (CUR), which is often a significant factor in how credit bureaus calculate your credit score.

But here’s the caveat. More credit will only help lower your CUR if you don’t increase your spending to the point where the ratio increases again.

Requesting or accepting a credit line increase can typically be done online and is usually just a matter of signing in to your account, providing a bit of information — like your income — and submitting your request.

Open Another Credit Card

Estimated Time: 15 minutes

Getting another credit card basically does the same thing as a credit line increase — it can contribute towards lowering your credit utilization ratio because you end up using less of your overall total credit limit.

But, again, this is only the case if you don’t increase your credit usage.

Applying for a credit card can be done in a quarter-hour, especially if you receive a pre-qualified or pre-approved offer.

Sign Up for Automatic Payments

Estimated Time: 10 minutes

Every time you miss a payment due date, your credit score can take a hit. Let it get to a point where your account is 90 days or more past due, and it can really damage your credit.

Signing up for automatic payments — either bill pay through your bank or AutoPay with the creditor — can help ensure that your payments are received on time, every time.

Find a Tax Preparer

Estimated Time: 30 minutes

If you’re doing your own taxes, you may be missing out on deductions and other money-savers that make it well worth having them professionally done. A half-hour spent researching tax preparers in your area could really pay off come tax time. Here are a few things to consider when looking for one.

Decide To Pay Off Your Debt

Estimated Time: 20 minutes

Let’s say you’re considering investing $5,000 in a certificate of deposit (CD) that pays 3.75% if you hold it for one year. Yet you still owe $5,000 on the last year of your auto loan at an interest rate of 8%. It’s a better investment to pay off your auto loan than it is to invest in the CD because you’ll net (save) an additional 4.25% on your “investment”.

Carrying debt costs you money. So if you have a choice of paying off a debt or investing, and the debt costs you more to carry than you’ll make on the investment, consider paying off the debt instead. Paying off credit cards or other revolving debt can also help to lower your credit utilization ratio, which we know can raise your credit score.

But first you have to crunch the numbers, which should take no more than 20 minutes of your time.

Defend Against Scams and Fraud

Estimated Time: 60 minutes

Identity theft and credit card fraud can hurt your finances, damage your credit and take ages to resolve.

Take some time to hunker down and protect yourself by checking your credit reports, making sure your passwords and accounts are secure, and familiarizing yourself with common tactics, like phishing and credit card scams.

Build Up Your Emergency Fund

Estimated Time: 20 minutes

An emergency fund is one of the best ways you can prepare yourself for unexpected expenses like car repairs, appliance replacements or medical emergencies. It’s often suggested to have three to six months’ worth of living expenses in your emergency fund.

Even though it’ll take some time for your savings to reach that amount, getting started can be quick and easy. Just set up an automatic transfer from your checking account and start growing your fund.

And if you already set aside some money, you can simply check in to make sure everything’s going according to plan.

Bottom Line

Taking a few quick steps to keep your finances on track is an effective use of time. But the most important thing you can do is stay committed to managing your financial situation in the long run.

Turn tips like tracking spending, adjusting your budget and saving money into consistent habits and you’ll set yourself up for success over time.