Top Money Ideas For 2020
Bid adieu to financial stress and anxiety
Posted on 01-09-2020, Read Time: - Min
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People are always looking for ideas to save money, increase their incomes, and protect their assets. To kick off your new year, here are 20 money ideas to improve your financial world in 2020. Taking time to implement these ideas can help reduce financial stress and anxiety.
Idea 1 – Create or Update a Cash Budget
You must have a budget or ongoing record of cash coming in and going out. I learned early in my career that what is not measured is not managed. You can’t navigate your journey if you don’t know how you are doing and where you are going. In the real-life world of what I call the FinancialVerse, this is done by understanding and managing your inflow and outflow of cash. Think of yourself as a plumber. You are trying to make sure your water pipe flowing cash is used as needed and does not have holes in it, leaking without your knowledge.
Idea 2 – Open A High Yield Internet Savings Account
Signing up for a high yield savings account online can take as little as five minutes at most popular online banks. It can result in you earning substantially more interest on your savings. All you will need to do is verify your identity, provide some information, and connect to one of your other bank accounts. These accounts can pay up to 200% more than accounts offered by brick and mortar banks.
Idea 3 – Get a Life Insurance Checkup
Just as you have routine health, dental, and even car checkups, your life insurance could use an annual checkup too. By taking time to review your current policies, personal circumstances, and changing needs, you may be able to:
- Save money on your life insurance premiums
- Potentially reduce your income tax liabilities with certain types of life insurance
- Add to or reduce the amount of life insurance you have
- Make sure that your policy is performing up to your expectations, and
- Earmark policy proceeds for your favorite charities.
Before you meet with the qualified financial professional who services your life insurance coverage, it would be helpful to tell them about any changes with yourself and your family, the financial changes you’ve encountered over the past twelve months, and what you hope to accomplish during your checkup.
Idea 4 – Shop Your Car Insurance
If you own or lease a car, it is a good idea to shop your coverage at least every year. You can do this at any time and possibly generate substantial savings. You can accomplish this in four easy steps:
- Decide what coverage you must have, the deductible you can work into your budget, and how you need to pay – monthly, quarterly or annually
- Look into four or five new companies
- Get quotes from each for the same coverage and payment terms
- Don’t be afraid to ask about available discounts such as:
- Having an alarm in your vehicle
- Parking your car in a garage
- Buying multiple policies with the same company – home and car or rental coverage and car
- Driving a low annual mileage
- Being a long-time customer
- Insuring more than one car
- Having no accidents in three years
- Having no moving violations in three years
The market for car insurance is very competitive and has seen much innovation in the past several years. Shopping your coverage could save you money and improve your protection.
Idea 5 – Inventory Your Debts and to Reduce the Outstanding Amount
I believe you should carefully look at all your debts at least annually and become fully aware of what you owe. Create a list that includes lender contact information, account numbers, and a rough estimate of the amount owed for each loan in your name. You will also need an accurate listing of how much you owe to make it easier for any survivors to get an accurate sense of your affairs. This listing should include:
- Credit cards: card issuer, number, and contact information.
- Mortgage: lender information, escrow company contact info, purchase price, recent valuation estimate.
- Personal loans: Auto loan, student loans, other loans.
One of your key financial priorities should be to get out of debt as quickly as possible. The first step in this journey is a full assessment of what obligations you have accumulated.
Idea 6 – Take Care of Your Body and Property
One of the biggest life lessons is to prepare in advance by keeping things in good working order and preserving them for the long haul. This includes all that you own including your personal physical and dental health. For all the physical assets you own, a little maintenance can save you big repairs to your car, home, or computer equipment. Get annual health checkups, the 10,000 mile car service, and annual heating and cooling maintenance services.
Idea 7 – Review and Adjust Your Income Tax Withholdings
The federal income tax you pay each year is a pay-as-you-go tax. Amounts are taken from your paychecks each time you get paid. You can avoid surprises, such as owing a large amount to the government at tax-filing time, by checking the withholding amounts. The IRS recommends that everyone do a periodic Paycheck Checkup. You can do this by using the Tax Withholding Estimator on IRS.gov. To learn more about how to manage your withholdings use the instructions in IRS Publication 505, Tax Withholding and Estimated Tax.
The IRS suggests that taxpayers with more complex situations may need to use Publication 505 instead of the Tax Withholding Estimator. This includes employees who owe the alternative minimum tax or tax on unearned income from dependents. It can also help those who receive non-wage income such as dividends, capital gains, rents, and royalties. The publication includes worksheets and examples to guide taxpayers through these special situations.
Remember, in the FinancialVerse after-tax cash income is most important. Taking the appropriate actions to save tax dollars and to pay the correct amounts are essential.
In order to improve your money knowledge, you need to spend 17 minutes a day or two hours per week (Spend2) learning and studying the world of personal finance. Knowledge is power. You must make boosting your financial literacy a priority.
The IRS suggests that taxpayers with more complex situations may need to use Publication 505 instead of the Tax Withholding Estimator. This includes employees who owe the alternative minimum tax or tax on unearned income from dependents. It can also help those who receive non-wage income such as dividends, capital gains, rents, and royalties. The publication includes worksheets and examples to guide taxpayers through these special situations.
Remember, in the FinancialVerse after-tax cash income is most important. Taking the appropriate actions to save tax dollars and to pay the correct amounts are essential.
In order to improve your money knowledge, you need to spend 17 minutes a day or two hours per week (Spend2) learning and studying the world of personal finance. Knowledge is power. You must make boosting your financial literacy a priority.
Author Bio
| Harry N. Stout, author of The FinancialVerse: A Common Sense Approach for Your Money is an acknowledged senior leader in the global financial services business with experience in all key business areas with particular expertise in personal finance, product innovation, and business management. He has over 25 years of financial services industry experience in the U.S. and abroad, working in Europe, Northern Asia, Africa, New Zealand, and Australia. Visit www.financialverse.com Connect Harry N.Stout |
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