About 'top 10 mutual funds'|Top 10 Best Balanced Mutual Funds – Part 2
Getting your personal finances in order should be one of the top resolutions for everyone. Here are 10 things to begin doing in the New Year. 10. Stop paying overdraft fees. Bank fees for non-sufficient funds can amount to up to $35 per transaction. An individual who usually overdraws their account does so an average of two times per month. These fees can add up quickly-to a whopping $840 a year. Instead of giving your financial institutions this fee income, get overdraft protection for your accounts and do a better job of balancing your check book. 9. Stop paying expensive finance charges on your credit card. Credit card debt is bad, bad, bad! Not only are the interest rates high (averaging around 16%), but the finance charges you pay on this debt is not tax deductible. If you already have a significant balance on your credit card that you cannot pay off immediately, consider transferring your balance to a 0% interest rate card. The 0% is usually for a certain time period (1 year or less) and companies usually charge some type of balance transfer fee. However, during the time your balance is not generating interest, make an effort to pay down the debt. 8. Check your credit report each year and promptly dispute and correct any mistakes. You should know by now that you are entitled to at least one free credit report each year at www.annualcreditreport.com. Be sure to check your report each year from all three credit bureaus to see where you stand. For a small fee, you can also check your credit score. 7. Build an emergency savings fund. In the past, financial advisors have always suggested that individuals have an emergency fund that contains enough to support three to six months' worth of expenses. In today's struggling economy, that emergency fund needs to grow to support six to nine months' worth of expenses. The article "How to Save Money Like a Pro" provides great tips on how to effectively save money. By executing these tips and being disciplined, you'll have no problem building your emergency fund. 6. Contribute more (or begin contributing) to your 401(k). Even though the financial markets are down these days, your company 401(k) is still a great way to save for retirement. Taking advantage of this tax-deferred method of saving and also take advantage of your company's matching funds. 5. Keep track of your spending and eliminate unnecessary expenditures. This is a great way to figure out where you could be saving more money. 4. Contribute a portion of your income to the purchase of an income-producing asset. In addition to saving money, purchasing assets such as individual stocks and bonds, a mutual fund, a certificate of deposit (CD), or even a savings bond are a great way to generate additional income. 3. Reduce or completely eliminate credit card debt. Again, credit card debt is bad. It is best to completely eliminate this debt; however, it would also be good if you could reduce the balance of your credit cards to about 30% of the limits. This reduction would help improve your credit score by showing that your cards are not at the maximum limit. 2. Refinance your adjustable rate mortgage (ARM) to a fixed-rate mortgage. Mortgage rates are currently the lowest they have been in a number of years. Refinance your mortgage to get a better fixed rate and to reduce your monthly mortgage payments. By refinancing to a fixed rate, you won't have to worry about your mortgage payment increasing unexpectedly. 1. Set financial goals and a step-by-step plan to accomplish those goals. This is the number one resolution you should make for this year. Determine what it is you would like to accomplish financially (whether it is saving for a down payment on a new home, saving for a dream vacation, or building an emergency fund of $20,000). Write down your goal and your plan to get there-then follow your plan. |
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