10 Quick Financial Tasks to Boost Your Financial Health Today
Discover 10 simple financial tasks you can complete during your lunch break. From checking credit reports to setting financial goals, these steps can significantly improve your financial well-being.
In today's complex financial landscape, taking control of your personal finances can seem daunting. However, there are several straightforward tasks you can accomplish in a short time to enhance your financial health. Here are ten financial activities you can complete during your lunch break:
Review your credit reports: Since 2020, the three major credit bureaus - Equifax, Experian, and TransUnion - have been offering free weekly credit reports. This practice, which began during the pandemic, has now become permanent. Visit annualcreditreport.com to access your reports and ensure their accuracy.
Implement a credit freeze: To protect yourself from potential identity theft, consider freezing your credit. This security measure, made free by federal law in 2018, prevents unauthorized access to your credit report, making it more difficult for fraudsters to open accounts in your name.
Determine your net worth: Calculate your assets and liabilities to get a comprehensive view of your financial standing. This practice, which dates back to the 18th century when budgeting concepts first emerged, provides a more accurate picture of your financial health than just focusing on annual income.
Establish a 529 college savings plan: These tax-advantaged investment accounts, created in 1996, can help you save for education expenses. Use online comparison tools to find the best plan for your needs.
Familiarize yourself with your 401(k) plan: Review your retirement plan's investment options, fees, and performance. The first 401(k) plan was introduced in 1978, and by 2022, the average 401(k) balance in the United States reached $103,700.
Evaluate your retirement contributions: Aim to save at least 15% of your pretax income for retirement, including employer matches. This strategy has helped many individuals become 401(k) millionaires, a milestone that reached record numbers in recent quarters.
Access your Social Security statement online: Create an account at ssa.gov to view your Social Security statement, which received a redesign in 2021. This tool can help you plan for retirement and understand the benefits of delaying your claim.
Set up an IRS online account: Establish an account at irs.gov to monitor your tax-related activities and protect against fraud. The IRS introduced these individual online accounts in 2016.
Eliminate unnecessary services: Review your subscriptions and recurring expenses, canceling those you don't use frequently. This practice can free up funds for other financial priorities, such as building an emergency fund - a concept that gained popularity in personal finance literature during the 1990s.
Define your financial objectives: List and prioritize your financial goals. This exercise can help you stay focused on your budgeting and saving efforts, balancing both necessary expenses and enjoyable pursuits.
By completing these tasks, you can take significant steps towards improving your financial well-being. Remember, financial management is an ongoing process, and regular check-ins can help you stay on track with your goals.
