Summer has passed and while that means no more days by the pool or enjoying a scoop of ice cream on a nice, hot day, fall is still a great time to partake in fun activities. I mean, who doesn’t love a good apple picking day or a scary movie marathon? But before you pick your next horror film to curl up to on the couch, consider how much more enjoyable it may be without the weight of your finances on your mind. Yes, fall is a great season for fall activities, but it also happens to be a great time to get your finances in check, too.
Now bear with me. Between COVID and inflation, many people’s finances have suffered. According to a new NerdWallet survey conducted by the Harris Poll, 2 in 5 Americans (40 percent) feel their overall financial health is worse now compared to before the pandemic, while just 21 percent say it’s better. You may feel as though there’s no coming back, feeling less confident financially, but I assure you that’s not the case. Your savings may have taken a hit, but that doesn’t mean you can’t get back on track. Below, read tips from NerdWallet for how you can feel more financially confident this fall. It doesn’t happen overnight, but the best thing you can do right now is to make a plan to better your financial future.
Tip #1: Consider a balance transfer credit card
Over the next 12 months, more than 2 in 5 Americans (44 percent) plan to pay off debt, according to the NerdWallet survey. Interest rate increases will continue to raise the cost of borrowing money at a time when budgets are stretched thin. If you can, set some money aside for unexpected expenses so you can avoid additional credit card debt. If you qualify, try to lower your interest rate with a balance transfer credit card or personal loan. That can help you save hundreds of dollars while you pay down debt.
Tip #2: Consider using a cash back credit card
Additionally, with prices rising many are feeling the budget squeeze: Annual inflation is up 8.3 percent as of August 2022. You may also want to consider using a cash back credit card for your daily purchases to help mitigate the impact of inflation, but only if you won’t carry a balance from month to month.
Tip #3: Take the leap
If you’re sure you want to own a home and you find a suitable property at a price you can afford, then do it. Don’t talk yourself out of buying a home because you think home prices or mortgage rates will fall soon, because you may be wrong. And if you’re on the hunt for a good mortgage lender, NerdWallet offers options for shopping around.
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Tip #4: But not before you’re ready
And if you don’t think you’re ready to buy a home quite yet, that’s fine too! The last thing you want to do is talk yourself into buying a home before you’re ready, just because you believe you’ll never be able to afford a place of your own if you wait. The first thing you’ll want to do is figure out what monthly mortgage payment will fit your budget before you start shopping. Using the NerdWallet mortgage calculator is a good place to start.
Tip #5: Take advantage of rate increases
With the past couple of federal fund rate increases, interest rates jump higher on many checking accounts, savings accounts, and certificates of deposit, which is actually a good thing, according to NerdWallet. Because of that, you can take advantage of these rate increases by shopping around for a new account with better interest rates, especially since higher interest rates can help mitigate the effects of high inflation. The accounts featured here could help you boost your emergency fund or save up for big purchases.
For the survey methodology, click here
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