8 Tips to Improve Your Finances During Financial Literacy Month

April is tax season. It’s a time many people are thinking about their finances. But if you’re like most people, you’re probably thinking in the short term. What’s my refund going to be—or how much do I owe? And what is that going to do to my monthly budget?

It’s good to be thinking about those things. It’s also important to look at the bigger picture. Financial Literacy Month, which is also in April, gives you a perfect chance to do just that.

“Half of Americans are considered poor or low income. Two-thirds of the population report that they would have trouble coming up with $1,000 for an emergency. 78% of workers live paycheck-to-paycheck, with the majority of their income going toward debt,” the National Financial Educators Council reports. “We have a serious problem.”

But it doesn’t have to be that way! The Financial Literacy Month website features tools and resources to help you understand your finances better and build a bright financial future. And here are eight tips to help you become savvier with your money. Some are easy things you can do today. Others might take a little more work. But all are worth the effort!

Make your saving automatic.

It’s essential to have money set aside for emergencies—and to save for retirement. But once your paycheck hits your account, it can be too easy to spend it all. The solution? Schedule automatic transfers to a separate account for your emergency fund, your retirement plan, or both. Start with something like 10%. You might even find that you don’t miss it.

Pay your credit cards off every month.

If you can’t do this now, pay them down until you can. One popular way is the “snowball” method. Here’s how it works. Make only the minimum payment on all of your debts—except the smallest one. Put as much money as you can toward that. When the smallest debt is paid off, repeat the process and continue until everything is paid!

Check your tax withholding.

People love getting big tax refunds. However, that means you’ve loaned the government your money for the year—interest-free. For example, instead of a $2,500 refund in April or May, you could have more than $200 extra in your paycheck every single month. Wouldn’t that be nice?

Don’t throw away free money.

Who would do that? You—if your employer offers a match on your retirement savings and you don’t contribute enough to get the full amount. Say your company matches the first 3% of the salary you contribute to a 401(k). You should save as much as you can, but at the very least, you’d want to save that 3%.

Pay less for services.

Are you paying more than you should for cable, internet, or your mobile service? Maybe not—but you won’t know unless you ask. Often, companies have discounts or special packages available, especially if you’re a loyal customer and haven’t been on a promotional deal for a while.

Consider a credit card that rewards you.

This can be a great way to earn points toward free travel or other rewards, just for buying the things you would buy anyway. Don’t spend more than you normally would just to get rewards. And remember, if you regularly carry a balance, the rewards probably won’t outweigh the interest you’re paying. (Go back to item #2 in our list.)

Track your spending for a while—and then review it.

You probably spend money on a lot of little things without realizing how much it adds up. Maybe you get takeout for lunch a couple of times a week or stop for coffee every day on your way to work. Try tracking everything you spend for a month or two. Then, take a look at your habits. You’ll find areas where you can save, likely without even feeling like you’re making a sacrifice.

Purchase the Right Insurance.

Insurance is an essential tool for your financial well-being, too. Even though it’s easy to think of insuring your car or home as protecting your “stuff,” insurance protects your finances. Insurance can’t prevent your vehicle from being hit by another driver—but it can pay for the repairs so that money doesn’t come from your pocket.

Take a little time to think about your finances this month, and try one or more of the tips above. And give Berkshire Insurance Services a call at (610) 376-7300 or contact us online. We can review your current insurance policies to 1) make sure you have the right coverage and 2) compare the cost of that coverage with several companies to make sure you’re paying the lowest price for that cover.

As with many things in life, small steps can have a significant impact when it comes to money!