13 Ways to Improve Your Finances in the Year 2013 – Part 3
This is our third entry in our series where we take a look at 13 different ways in which you can turn the year 2013 into your most successful year financially-wise. This time, we will resume our list of tips and suggestions starting with tip number seven, which covers how you can make better choices when it comes to managing your 401 (k) and then take care of other very interesting topics.
Ready? Then read on!
7. Manage Your 401(k) Better:
When it comes to managing the funds from their retirements accounts, a lot of people tend to make several mistakes that seem good ideas at the time: Paying extremely high fees, choosing extremely conservative or extremely risky portfolios, grating unwarranted personal loans, not checking on the products or services they have invested in and more. All of these can be fatal of course, especially if you allocate all your retirement funds on one investment opportunity, since its failure almost guarantees you will lose a fair amount of those savings.
In order to avoid these missteps with your 401 (k) one of the best thing you can do is to use free services that are usually offered through most companies’ human resources departments, which not only advise investors on the best ways in which to invest their money, they can also grant personal loans on for those who want to invest in those opportunities. In addition to that, these HR departments also provide free seminars and online courses to their clients.
8. Save at Least a Quarter of Your Income
It is widely believed among people that putting anywhere between 10 percent and 15 percent of your income into your retirement account should be more than enough to guarantee a safe retirement. However, many financial experts agree on that this is not only not enough, but it can be actually far from adequate, especially if you already hold a personal loan that you need to repay.
If you are expecting at least a 4 percent return on your savings by the time you reach the age 67 and you started saving when you were 35, then you should start saving at least double the amounts mentioned above if you want those results, and that is even after taking Social Security into account. If you want to be safe and sure that you will earn enough on your retirement, several financial experts advise on saving as much as one-quarter of your monthly income after taxes.
9. Take Advantage of Automatic Banking
For many people, especially those who are not used to using computers heavily on their everyday lives, shifting money into savings and investment accounts manually is the only option. However, with all the advancements of tech and the Internet, anyone who considers this too time-consuming should definitely consider setting up automatic deposits, which can be done at your bank or right at home from your computer. Nowadays, every major bank has a complete banking system set up that makes it easy for you and for any customer to apply for personal loans and to shift money from one account to the next.
What is even more, most banks nowadays offer, in addition to the convenience of their online banking systems, a series of rewards for customers who prefer managing their funds online instead of at the bank. So start learning how to take advantage of the online banking services offered by your lender and you could end up saving some nice cash.
10. Benefit From What Your Credit Card Offers
If you have one or more credit cards and you use all of them, be sure that you are becoming not only far more qualified to apply for a personal loan, but that you are also earning a series of rewards for your spending and prompt payments. So make sure don’t to put those rewards to waste and start using them.
If you are wondering which credit cards are exactly the best to have or which give the best rewards, the best ones are oftentimes the ones you can get from retailers and that are specific to them. So when you use your points or rewards, by buying these cards you will be earning even more this way.
And that is it for now. Check back soon for our last entry in this series so you can take advantage of all our tips and make this year the best for your finances.