Your Top October Money Questions Answered
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As we dive into October, it’s time to tackle your top money questions and set yourself up for financial success. In this post, we’ll cover rebuilding credit, paying off loans, and completing essential end-of-year financial tasks.

Rebuilding Credit: A Step-by-Step Guide

Rebuilding credit takes time and effort, but with a solid plan, you can get back on track. Here’s how:

• Monitor your credit report: Obtain a free copy of your credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) once a year.
• Dispute errors: If you find any mistakes on your report, dispute them with the credit bureau immediately.
• Pay bills on time: Payment history accounts for 35% of your credit score. Set up payment reminders or automate payments to ensure timely payments.
• Keep utilization ratio low: Keep your credit card balances below 30% of your credit limit to show lenders you can manage debt responsibly.

Example: Sarah has a $2,000 credit limit on her Visa card and charges $600 worth of groceries each month. To improve her credit score, she reduces her monthly purchases to $400, keeping her utilization ratio at 20%.

Paying Off Loans: Strategies for Success

Paying off loans efficiently requires discipline and the right approach:

• Prioritize high-interest debt: Focus on paying off debts with the highest interest rates first.
• Snowball method: Pay off smaller debts first to build momentum and confidence.
• Consolidate loans: Combine multiple loans into one loan with a lower interest rate or better terms.

Example: John has $5,000 in credit card debt with an 18% interest rate and $10,000 in student loans at 6%. He prioritizes paying off the credit card balance first to avoid wasting money on high-interest rates.

End-of-Year Financial Tasks

October is a great time to wrap up essential financial tasks before year-end:

• Review budget: Assess your spending habits and make adjustments as needed.
• Adjust withholding: Update your tax withholding to ensure you’re not overpaying or underpaying taxes throughout the year.
• Maximize retirement contributions: Contribute as much as possible to your 401(k) or IRA before December 31st.

Example: Emily contributes $2,000 per month to her employer-matched 401(k). She reviews her budget and adjusts her withholding to ensure she’s not overpaying taxes on her additional contributions.

Expense Tracking: Tools for Success

Tracking expenses effectively requires the right tools:

• Spreadsheets: Use a spreadsheet like Google Sheets or Microsoft Excel to categorize and monitor expenses.
• Budgeting apps: Utilize apps like Mint, Personal Capital, or YNAB (You Need a Budget) to track spending and stay on top of finances.
• Automate tracking: Set up automatic expense tracking by linking your bank accounts to your chosen tool.

Example: Michael uses Mint to track his expenses and set budget reminders. He automates his expense tracking by connecting his bank accounts, making it easier to monitor his spending habits.

Take Action Today!

As we approach the end of the year, take these practical steps to improve your financial health:

• Review and adjust your budget
• Prioritize high-interest debt repayment
• Complete essential end-of-year financial tasks

Remember, small changes today will lead to significant improvements in the long run. Stay motivated by tracking your progress and celebrating milestones along the way.

You got this!

By Malik Abualzait