A finance noob or a credit expert – all of us have made financial resolutions for the new years during our life. Yet, the more we make them, the more we feel tempted not to follow them. Instead, we become busy, lazy, or find new goals to follow as time passes.
- You might have listed to increase your finances
- Improve your Equifax credit score in 2022
- Or, you might have wanted to be better at using credit to have a financially stable new year
Although it’s only the third month of the year, the upcoming tax month is only making it harder to keep track of your financial resolutions and goals. Why is it so hard to follow financial goals when it can help maximize your money and credit rewards? Let’s get some answers. Shall we? Yes? Here you go!
Why Financial Goals Are Hard To Achieve?
All in all, spending habits, saving routines, and bogus money plans can make it harder to reach financial goals. And, it’s not a matter of a day or a month, but slow yet gradual damage that makes your even simplest goals unreachable. In addition, there might be other reasons and factors why you aren’t achieving your financial goals. As per The Hellyeah Group, some of them are:
- Unrealistic and hard to accomplish resolutions
- Updated tax codes and policies
- The frustration of work, illness, or anxiety of money-saving
- No backup resolution in case of not fulfilling the primary goal
Your inconsistent and easy to give up personality can also play an essential role in stopping you from becoming a better credit person. So, despite feeling financially stressed out, how can you maximize everything you earn for better credit rewards?
How To Maximize Your Money?
We all wish for a genie to help solve our financial problems when things get rough. Unfortunately, however, not all of us are lucky enough to find a magical lamp to pay our bills, insurance, tax money, and all that hectic stuff. So, the only choice you are left with is to become your own genie and create the magic you look for.
Yes! So what if three months have already passed and you have managed to let down all your goals. Yes! It doesn’t matter because you still have nine months to work and turn every bad into good. Here are some tips to help you in your financial journey:
1. Prioritize Passive Income
There are some long-cuts to follow, even the best short-cuts. Didn’t understand it? Well, you can only maximize your income if you’re already earning enough.
- It’s more like the more you earn. The more are the chances to invest and maximize the money
- Like, an earning which is consistent when you’re not directly involved in the earning process
So, do we mean all the average-earners don’t need to focus on passive income? If you understand the concept of passive income, you must already know that you need to prioritize it even more and find ways to earn it. Why? Because this is the only method that won’t burden you but ease your money struggles. Here read an easy definition by Investopedia before moving further:
“Any income stream in which the investor isn’t directly involved. For instance, rental property, silent investment, partnership (limited), etc.”
Now, how does a person earning a median income benefit from this? Or, to be precise, how can he find ways to earn passive income? Here are some:
- Do you have any graphic skills? Start selling your drawings/work online or look for portals that allow creating freelancing accounts.
- Do you own a bicycle that’s no longer in use? Put it up for hourly or weekly rent.
- Can you speak multi-languages? Create an online course and attract people who want to learn
- Are you good with editing pictures or videography? Offer your services to people around you or run an ad on Facebook to find work in the neighborhood.
You can also invest in the stock market or do hourly jobs on the weekend. There are endless ways to increase your income which you can then invest in companies or buy shares.
2. Know Your Credit Card
Yes, you know you need to compare things when opening a spending account. You recognize how to spend money to earn points on your credit card. Of course, you understand how to stay within your credit limit to maximize the credit benefits. However, do you know there are still endless hidden ways of using a credit card to save money and maximize credit rewards? Your credit card company won’t tell you all the policies or terms you can use in your favor.
But why fear when we are here? Make ‘i’ll learn to understand my credit card’ your financial goal this month. Here’s how you can use your credit card for the best financial results:
- Consider balance transfer if you’re struggling from a high credit debt on your card
- Deposit your credit rewards in a tax-free account if you’re using a cash-back card
- Thoroughly study the weekly, monthly, and yearly offers to compare if it’s the right card or everything is just a bluff
- Get a supplementary card to take your financial game to the next level
According to Moneywehave, you can work on doubling up your spending and credit rewards with the help of a supplementary card. However, make sure to choose the primary cardholder whom you fully trust with your card.
3. Consider Refinancing Mortgage
Refinancing a mortgage? Huh? Can you really do that? Yes! A recent mortgage study reveals that almost 3.8 million candidates showed interest in becoming refinancing mortgage candidates. However, to know if you qualify for one or not, you must calculate and compare everything thoroughly. Like, if the refinance plan makes sense to you or whether or not it will be a good idea even to consider this option because:
- You might need above 720 credit score to qualify for one
- You must reduce the policy by at least 0.75% to make the refinancing work in your favor
- You might need 20% home equity to continue the refinancing
However, it may sound vague, but you can really save up to $270 to $300 a month with your calculative and careful refinancing mortgage plan. Imagine how well you can put this extra money into your savings, vacations, or other things.
4. Don’t Hesitate From Money Talk
What’s the worst thing that can stop you from maximizing your money and achieving your financial goals? By not acknowledging the obstacles! You can only right the wrong if you know what needs to be corrected in the first place. It’s the third month of the year, which means you spent the two months already trying to maintain good spending and saving habits. However, even if you haven’t, you can try again by doing a deep catharsis of your situation.
- Did you fail to follow a monthly budget in the past months? Try rephrasing your goal and be realistic about it.
- Are you married or have a live-in relationship? Talk with your partner or spouse about the money and your goals to make sure you both are on the same page about it.
- Do you tend to shop a lot on your bad days? Do you cope with stress by spending money only to regret it later? Find the alternatives that can bring you peace and harmony without making you go broke.
Moreover, talking and having a sensible conversation with your partner or yourself won’t cost you a penny. But, aggressive spending and avoiding the elephant in the room will only put your financial stability at risk.
5. Keep Your Financial Knowledge Up-to-date
Whether you have just started to work on your stability or you’ve been saving up for good for quite some time now, you must strive continuously for the time to change. Of course, you can read blogs online or subscribe to Financial podcasts, but the more, the merrier, right? Gaining new knowledge can help you prioritize things in a better way.
- Do you find it difficult to create a budget that’s easy to follow? Seek professional advice on making one or even get one customized from an expert
- Can’t understand how money-saving and spending work? Attend online or in-person seminars to get financially literate
You can also attend webinars on stock investment or other income streams that can help you increase your earnings.
6. Follow A Dollar Rule
A dollar rule is to think of even the minor purchases as the giant ones. It can come in handy for your financial and credit life. For instance, if you’re thinking of buying a $110 footgear on your card that you can wear for a year or two, it might be considered a sensible purchase. However, if you want to put an $80 winter coat on your credit card that’s good for this season, but you might still want to get a new one next year, then it would be a false transaction.
- A good strategy is to think it through if purchasing an item is worth it, as would you enjoy using it for a long time.
- You can also practice analyzing if buying one thing can help you increase your rewards or will put you in credit debt.
And, if any purchase can make you fall into any kind of credit debt, it will only affect your financial stability. As per CNBC, your bad financial decisions might damage your credit score and credit life. However, the final say is always yours, as you know your income, spending, and how much you need to save than anybody else.
Here are answers to some of the frequently asked questions by the credit people:
1. Can I increase my credit reward points?
Ys, you can always spend intelligently to earn and increase your reward points. Here are some tips:
- Maintain the minimum credit usage limit
- Look for additional offers to earn bonus points
- Get discounts from online shopping
- Use your credit card for interest-free purchasing
- Benefit from temporary offers
Most importantly, use your card wisely to avoid any credit downfall.
2. How can I earn credit rewards?
Simple, by using your card! Here’s what you can do:
- Use your card for transactions that offer high reward points
- Benefit from sign-up and welcome bonuses
- Refer to a friend or relative to earn more credit rewards
- Utilize your card for travel bonuses
Ask your company if there are any gift cards or online coupons you can use to earn credit rewards.
3. How can you maximize your money fast?
Here are some easy to follow ideas and tips to double your money in no time:
- Look for government-supported investment firms (they might return more)
- Search on tax-efficient and similar benefits
- Study on the stock investment or new investing policies
- Find how you can earn money from your savings account
Yes, you might be able to save some pennies from your locked-up cash in your emergency or savings account.
4. Can you get free money?
The answer may surprise you, but yes! There are ways to earn free money with only a little yet wise financial knowledge.
- Look for government relief funds and know whether or not you can qualify for them.
- Talk to your lender, broker, or credit card provider if you can the least possible interest fee card (you might be able to save a lot from this)
- You can also get discounts on your necessary bills if you provide solid proof that you really need the concessions.
Or, you can get a lottery ticket if you want to try your luck with money. Hehe!
That’s it from our sides, credit fellows!
The financial world is full of knowledge. However, we could only cover the basic yet most helpful information. Did you enjoy this article? Do you want to read more such financial tips? Let us know down below!
What’s your favorite money-saving tip?
Featured Photo by Roman Wimmers on Unsplash