Have you done your annual financial review yet?
Every year, when you do your income taxes, you should take the time to review your finances too! Think about it. You already have all of your income, expenses, receipts, etc., put together for your annual income tax filing. Why not take it one step further? Review your finances! Not only could doing your financial review now save you time, but it could also save you money!
Start with your credit report. Have you looked at your credit score lately? From all three credit bureaus? Do you know your FICO score? If not, you definitely want to look at your credit report. Typically, your score is updated monthly, and chance are, it changed this month. Depending on your credit card use during the holiday season, your score may have dropped a few points. Why? More than likely your credit usage went up. If not, it may have stayed the same. But you won’t know for sure unless you make it a regular practice to review your credit report. So, log in and get started!
Once you have reviewed your credit report, it’s time to look at your credit cards. What are you paying in interest? Is there a cheaper interest rate for your credit range? Perhaps there is an introductory offer for a new credit card that could save you money? Has your credit score improved? If so, you may qualify for a better credit card. You’ll never know unless you review your current credit cards and compare them to what’s available to you. One simple change could save you hundreds in interest, earn you better rewards, or enable you to afford that one thing that you really want. Go on, what are you waiting for? Compare your current credit cards to better credit card offers today!
Finally, once you’ve reviewed your credit report and credit cards, it’s time to look at your budget. How did you spend your money in 2021? How would you like to spend your money in 2022? After you have taken your food, housing, utilities, and other necessities into consideration, did you spend too much on the extras? Discretionary spending is the easiest place to start if you really want to save money. What can you cut back on? What can you change? Remember, what you save now will enable you to take that vacation, buy that house, buy that car, or have that one thing that you want later!
So, have you done your financial review? If not, there’s no better day than today to start improving your finances!