Just about everyone promised themselves on December 31st that 2016 would be the year that they get into shape, make healthier habits, and improve themselves in every way. But what about your finances?
Most people promised to spend less, save money, and stick to their budgets more carefully. But there’s a better New Year’s Resolution that you should be making to improve your finances: Learn to speak finance.
If you take the time to learn to truly understand what every bank statement claims, what your credit card provider is really offering you, and what your mortgage terms really say… you’ll notice a marked improvement in your finances throughout 2016.
Here are the four reasons why learning to speak finance should be your 1 financial resolution this year:
- You’ll Find That Your Health Insurance Isn’t “One Size Fits All”
Do you really have the right health insurance plan for your needs? You might be surprised to find that your plan is nowhere near the right fit for you. But if you can learn to speak finance, the savings will be apparent.
For starters, just because you’re paying the lowest possible premium on your health insurance doesn’t mean that you’re getting the insurance with the lowest overall cost. Learning to speak finance and fully understanding your insurance options will help you to choose the best plan that’s REALLY the most cost-effective option.
Here are a couple useful resources to help you sort out the insurance jargon that stands in the way of the perfect health plan: https://www.healthcare.gov/blog/understanding-your-health-coverage/
- You’ll Get Out of (And Stay Out of Debt)
Credit card debt in particular is a nasty burden that most Americans have to deal with. But understanding your credit card provider’s terms, your credit plan, and your credit card statement will halt the threat of debt.
Taking the time to read over your APR could save you thousands of dollars in credit card debt. Knowing your real APR will help you decide if your current credit card is worth it. Even if your rate is around 18% you could wind up paying more than twice what the purchase is worth when you use your card. And if you find that you can’t afford those rates, making only the minimum payment will sink you deep into debt before the year is out.
- You’ll Pay Less For Your Bank
Banks are finding new sneaky ways to charge you for banking with them. ATM fees, checking fees, debit card usage, and more… they’re increasing the charges for anything and everything. Unless you carefully read over their rules and terms.
If you understand the finance speak in their terms, you can waive most of the fees that come your way, and learn how to dodge them in the future.
- You’ll Pay Less in Investment Fees
There’s an investment fee for just about everything. Taking actions (and even not taking actions) will cost you if you don’t learn to understand the investment terminolgy they use to confuse you into accepting those hefty fees.
Going over your original paperwork and finding loopholes, or simply sitting down with your financial advisor and making them walk you through every single fee and comparing it to competitors can save you serious cash. You might be paying too much for your fees. According to the Securities and Exchange Commission annual fees of 1% can reduce an investment portfolio earning 4% annually by nearly $30,000 compared to the same portfolio with a 0.25% fee over a period of 20 years. So double-check that list of fees they charged you with.