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  • Is Your Card This Good? Best Credit Cards with No Annual Fees

    Is Your Card This Good? Best Credit Cards with No Annual Fees

    It can be hard to build your credit. Credit cards come in so many varieties. How can you figure out which one is the best for you? To help you decide we’ve rounded up a selection of some of the best credit cards with no annual fees. These are some of the best credit cards you’ll find for building credit!

    Best Credit Cards with No Annual Fees

    Discover it Cashback Match Card

    This no-fee cashback card is an interesting one. You get one percent cashback on all purchases, which is standard for cashback. However, each quarter a new category of five percent cashback is in effect. For example, some quarters will have restaurants as a five percent category while others will have gas stations in that slot.

    While the quarterly bonus rewards are nice, the best part is the introductory period. For the first 14 months the card has zero interest! After that it reverts to between 13.49 percent and 24.49 percent APR.

    Citi Simplicity Card

    This straightforward no-fee credit card is great if you just want a simple card for daily use. It offers an 18-month period of zero interest and has no annual fees. To get accepted for the card it’s recommended that you have credit between 690 and 850. Overall, this card is a fantastic deal. On the downside, there are no rewards associated and the rates are somewhat high after the introductory period.

    That said, this card is worth it for the introductory period alone. No annual fees and no interest for 18 months is a hard deal to beat!

    Citi Double Cash Card

    This Citi card has no annual fees and is one of the best cashback cards you can get. It’s recommended you have between 690 and 850 for your credit score to get approved for the card. This card charges zero interest for the first 18 months, which makes it very attractive for new cardholders.

    The card gives you one percent cashback on all purchases. While it doesn’t have rotating cashback categories, you do get the awesome 18 months of no interest. Additionally, there is no limit on the amount of rewards you can receive. After the introductory period, the card reverts to between 14.99 percent to 24.99 percent APR.


  • Credit Cards with the Best Incentives!

    Credit Cards with the Best Incentives!

    Credit card incentive programs or rewards give back to you for every dollar you spend doing shopping or paying for a service. They reward you in cash backs, hotel and airline points, free gas and more.

    To benefit from the incentives, you are supposed to spend responsibly and pay your balances in full every month. So, before deciding which credit card to apply for, ask yourself, what are your spending habits? How many categories do you like spending on? What types of rewards would be more beneficial to you? With the answers to these questions, you will be able to pick the right credit card for you.

    What to Know About Credit Card Rewards
    Before diving into the rules, it’s important to understand what entails a rewards card. If a card offers you the opportunity to earn points, miles, or cash backs, it’s a reward card. They either provide you with flat-rate rewards (rewards of the same amount) or bonus rewards on specific categories, for instance, increased rates on dining out or groceries.
    Reward credit cards, therefore, encourage you to pay via credit cards instead of cash or debit card. Rewards, however, have rules. One of them is that it becomes confusing to navigate your card’s program if you are allowed to redeem rewards. Also, if you have up to four credit cards like the average American, it will be hard to understand the ins and outs of multiple incentive programs, especially if there is a mix of points, cash backs and mile cards. Let’s review credit cards that offer hard to find incentives.

    1. American Express® Gold Card
    If your heart beats for food, then the American Express® Gold Card is best suited for you. Whether you love preparing terrific dishes at home or dining out, this card rewards you a competitive 4X points for every dollar you spend on any restaurant worldwide or U.S. supermarkets (for up to $25,000 annually in purchases, then 1X). Travelers can also benefit from the 3X point rewards on flights, but they have to book directly with airlines or use Amextravel.com to get these rewards.
    However, the value of the points depends on how you redeem them. There are many ways you can spend them. You can use them to pay retailers like Amazon or redeeming for gift cards. You can use them to redeem statement credit to book travel.
    Travelers get an annual $100 airline fee credit, which covers in-flight beverages, food, seat upgrades, and baggage fees. What’s more, there is a $120 annual dining credit. This totals to $220 in annual rewards. The card has a $250, meaning the rewards you earn help “pay” the card.

    Pros
    • Strong incentive program with 4X points on dining and 3X on flights.
    • 35,000 Membership Rewards points welcome bonus for spending $4,000 within the first 3 months.
    • Up to $120 in dining credits and $100 in airline fee credit. They also have a $100 hotel credit.
    • No purchase fees charged outside the US.

    Cons
    • Doesn’t come with an introductory APR period.
    • $250 annual fee.
    • It’s a charge card, and it requires you to pay your balance fully in each billing cycle.

    2. Chase Sapphire Preferred® Card
    Compared to Chase Sapphire Reserve, Chase Sapphire Preferred® Card has a broader appeal and similar features and a high-sign up bonus but at a lower annual fee of $95. Chase Sapphire Reserve comes with a yearly fee of $550, and we don’t recommend it.
    The Sapphire Preferred® Card gives 2X Ultimate Rewards points on dining and travel, while Reserve offers 3X points. Preferred Card also offers 5X points on Lyft and 1 point for every dollar spent on anything else.
    Each point is worth a lower 1.25 cents a piece on every travel booked via Chase, but they can be transferred to hotel loyalty or frequent flyer programs. The credit card does not provide annual travel credit, but it has a car rental primary coverage as well as purchase protection and trip delay protection.
    You earn 80,000 bonus points if you spend $4,000 or more on purchases in the first three months since the account opening. You get $1,000 toward travel when you redeem those points.
    Many people prefer Chase Sapphire Preferred® Card because of the incredible sign-up bonus, the travel perks, and other benefits at a lower price. If you eventually decide to try Reserve, you can upgrade from Preferred.

    Pros
    • High sign-up bonus with lots of points.
    • A powerful travel coverage
    • Has partnered with major airlines and hotel brands
    • Comes with a bonus category for consumers who aren’t spending on air travel at the moment.

    Cons
    • The card doesn’t offer any statement credit benefits, including Global Entry/TSA PreCheck application fee credit.
    • Earns points more slowly that Reserve.
    • No annual travel credit.

    3. Southwest Rapid Rewards® Priority Credit Card
    When it comes to flexibility, Southwest Airlines Rapid Rewards takes the airline medal. The airline also offers two free checked bags for every passenger without the need for a credit card. Many families prefer Southwest Airlines because of these benefits.
    The Southwest Rapid Rewards® Priority Credit Card earns 2 points for every dollar spent on Southwest flight on their Rapid Rewards program. It also earns 2 reward points for every dollar spent on other purchases.

    They charge an annual fee of $149 and earns 40,000 points for $1,000 spent on the first three months from the date of opening your account. Another benefit of this credit card is that you can rebook your flights after prices go down. The only drawback is the Southwest’s lack of assigned seating, which is a turn off for most passengers.

    The Priority Card also offers a $75 Southwest travel credit annually. They also add 7,500 bonus points on your cardmember anniversary every year and 20% cashback on inflight purchases.

    What’s more, if you combine the rapid rewards card with a business card, you will come close to earning 125,000 point total required to get a Southwest Companion Pass. This gives you the ability to take a loved one or friend with you without paying a cent, and it could save you thousands of dollars.

    Pros
    • You earn 2 points for every dollar you spend
    • 40,000 points upon spending $1,000 in the first 3 months.
    • A more convenient annual fee of $149.
    • Rewards you with $75 Southwest travel credit every year.
    • You get 7,500 bonus annually on cardmember anniversary.

    Cons
    • No credits for an expedited airport security program.
    • Southwest doesn’t have a smaller international reach.

    4. Blue Cash Preferred® Card from American Express
    If you are not super excited about earning reward points which are valuable but tricky to redeem, and you prefer cash back, then Blue Cash Preferred® Card from American Express is the best option for you, even though it has a $95 annual fee.

    The added much-needed features in 2019, which included valuable bonus categories due to the changing consumer habits. They also launched a new streamline service, which gives cardholders a 6% streaming, a category which other cards don’t recognize. That was an addition to already existing categories of 6% cashback on US supermarket purchases.

    The card from American Express comes with other packs, including several travels and purchase protections. Cash backs are in the form of a statement credit, which can be used to “erase” purchases. To earn more cashback instead of points and miles, you can refer to their website for more information.

    This card is every commuter’s dream, thanks to its unlimited 3% cashback on gas or transit (including taxis, tolls, ride-shares, trains, buses, and more). The card does not earn membership rewards points, but it remains a simple way of earning rewards on the things you spend every day.

    Pros
    • A $250 statement credit upon spending $1,000 on purchases within the first three months.
    • Bonus cash backs on useful categories.
    • Generous bonus rewards at US supermarkets.
    • Intro APR offer.

    Cons
    • Unlike many cash-back cards, they charge an annual fee.
    • If you exceed $6,000 in expenses at US supermarkets every year, you may need to use another card.

    5. Capital One® Venture® Rewards Credit Card
    Capital One’s travel incentive program is not as lucrative as the offer from other banks, but they recently expanded their credit benefits. They added airline transfer partners and launched transfer bonuses. Even though the transfer value is not as great as the one with Chase, Capital One miles are easy to earn and use.

    The Capital One® Venture® Rewards Credit Card earns 2 miles for every dollar spent on purchases. The miles can then redeemed as a statement credit and used to “erase” travel purchases. For instance, if you buy a flight ticket, let’s say of $500, you can cancel it with 50,000 miles.

    Ventura comes with a $95 annual fee, which is lower compared to other rewards cards. Also, cardholders receive a credit for a Global Entry or TSA PreCheck application after every four years, for up to $100. This is a perk that can save you a lot of money if you not just time but also money.

    The card doesn’t have any foreign transaction fees and also includes additional travel perks, which include 24-hour travel assistance services, travel accident insurance, and auto rental collision damage waiver.

    Pros
    • 5X miles on rental cars and hotels booked via Capital One Travel.
    • TSA PreCheck application or Global Entry credit of up to $100 every 4 years.
    • Annual fee waived in the first year.
    • No bonus categories you need to follow.

    Cons
    • Other credit cards have higher rewards.
    • No introductory APR.

    6. Wells Fargo Propel American Express card
    If you are looking for the best option for gas rewards, Wells Fargo Propel American Express Card is the best choice. What’s more, it’s completely free, and there’s no annual fee. Propel offers an affordable way of earning a fixed value points on all categories you spend on daily.

    Earning a 3X on so many categories is like a free ticket to heaven for a no-annual-fee card, making this card the best option for beginners who have not tried the rewards game yet.

    If you have the Wells Fargo Visa Signature card, which is yet another no-annual-fee card, every point could be worth 1.5 cents. However, this is not a better reward card than Propel for travel experts. It lacks transfer partners, and Propel helps beginners a lot out of it.

    This card offers zero interest on every purchase or balance transfers for a whole year. It then provides 14.49% to 24.99% variable APR in the following year.

    Lastly, they also offer cell phone protection against theft or damage for up to $600 per claim or $1,200 per 12-month period. However, to get this reward, you must pay your bills with a Wells Fargo Propel Card.

    Pros
    • No annual fee
    • 0% APR in the first year.
    • No blackout dates on air travel.
    • No fees are charged on all purchases made internationally.

    Cons
    • Balance transfer charged 3% fee.
    • You can only redeem a minimum of 2,500 points.

    Hidden Benefits
    Credit cards have quite a few hidden perks that save you money and offer more protection. Here are some of them.

    Credit Card Price Protection
    If you buy an item only the price to drop after a few weeks, you may be pretty disappointed. Luckily, some of these credit cards, such as Citi® Double Cash Card or Chase Sapphire Preferred Card, may come through for you. They offer more than 60 days of protection. If they find a lower price in the offer, the difference is credited back to your account.

    Cell Phone Coverage
    How many times have you dropped your phone or lost it, never to find it again? Luckily, credit cards offer cell protection as an added perk.
    Some coverage will only cover a stolen phone with a police report for proof. Others pay damage costs.

    Delayed/Lost Luggage Protection
    Some cards offer protection for lost or damaged baggage while others cover both. When you lose your luggage after a flight, you are never offered much help.
    If you have this type of coverage, and you have an essential meeting to attend, but you lost your luggage, you can pass by the suit shop instead and head to the meeting right away.

    Bottom Line
    There you have it. There are so many rewards and benefits you can get from your credit card. However, you need to apply for a credit card that is better suited for your needs. If you are a beginner, the Wells Fargo Propel is the best choice for you. However, if you have a mix of cash backs, miles, and points from different issuers, you will not be able to combine the rewards.


  • 3 Crazy New Credit Scams, Don’t Be A Victim!

    3 Crazy New Credit Scams, Don’t Be A Victim!

    Let’s face facts – if you don’t take credit fraud seriously, scammers will, and at your expense, search for credit fraud alerts. At a time when more and more people are turning their backs on cash in favor of credit and debit cards, the risk of credit fraud is higher than ever. Yet Americans don’t seem to be doing enough to protect themselves against credit scams.

    In this new generation, you might have had to be convinced by your kids or grandkids at some point that using your credit card online is safe. “It doesn’t feel safe,” you may say, but they tell you that’s the way everyone shops all the time, and their credit card information is totally safe.

    But they’re wrong. Credit card numbers do get stolen, and credit fraud does happen, both online and offline. In fact, security experts say virtually everyone has been the victim of at least one data breach at this point.

    New survey data from AARP show that Americans are unnecessarily putting themselves at greater risk by failing to adopt smart digital safety practices. In fact, 47% of U.S. adults have reported being victimized by a fraudulent purchase using their credit or debit card.

    Here is a look at 4 of the most convincing scams that you will want to be on the lookout for:

    1. The Jury Duty Credit Card Scam

    In this scam, the con artist calls the victim claiming to be a representative from the local court in their area. They tell the victim that because they failed to show up for a scheduled jury duty an arrest warrant has been issued in their name. The victim replies by saying that they never received a jury duty notice.

    The scammer then says that, in order to clear up the matter, they need to verify some information. The scammer will go on to ask for personal information including the victim’s address, social security number, birth date, and credit card numbers. The unknowing victim, who is frazzled and worried about the arrest warrant, complies and gives the caller the information, becoming subject to identity theft and credit card fraud.

    2. “Skimming” Your Card

    Skimming machines, known as “skimmers” have become high-tech these days. Recently, skimmers have been found in gas pumps and ATMs across the country. With these skimmers, credit card data is collected and transferred via Bluetooth to the scammers who can then replicate the cards and go on a shopping spree. Other traditional, less technological skimming tricks include restaurant waitstaff and retail employees skimming your credit card and then using it to make small purchases that are very often missed by the victim.

    The bottom line is that you should always look your bill over carefully each month and report discrepancies immediately to your credit card company. If reported in time, you will never be liable for fraudulent purchases.

    3. Scam Phone Call Claiming to Reduce Your Credit Card Debt

    In this marketing scam, the victim receives a phone call from someone who claims that he is a representative of their credit card company and can get them significantly reduced interest rates and debt payments. The catch? The victim needs to provide their credit card information to confirm their identity.

    Recently, these types of marketing cons came under the scrutiny of the FTC, and it is now illegal to demand upfront fees for debt settlement services. In addition, debt reduction companies are now required to maintain a dedicated account, entirely owned by the client, for use in paying creditors. However, not everyone knows this and therefore is still a potential victim to this sneaky scheme.

    Make sure to monitor your credit card statements, bank statements, and credit reports on a regular basis. The earlier you catch a potentially fraudulent transaction, the better the chances that you’ll be able to prevent further trouble!


  • Is Now the Time to Refinance Your Home?

    Is Now the Time to Refinance Your Home?

    When is the right time to refinance your home? That can be a tricky question, as the act of refinancing can be time-consuming and you want to make sure you’re getting the best deal. However, the general rule of thumb is that you want to refinance when you can save at least 2% of the interest rate of your current mortgage. Let’s get more into home refinance, what it means, and when you should pull the trigger.

    Remember: if you have specific questions about real estate or home values, you might wish to speak to a professional financial advisor. Everyone’s situation is unique, and while general rules are helpful, you’ll want specific advice when you go to make major moves like refinancing your home.

    Home Refinance

    What is Home Refinance?

    Home refinancing refers to a practice that involves taking out a new mortgage loan to pay off an existing loan. Broadly, this falls under the umbrella of a financial practice called debt consolidation. This might sound a bit odd at first. Why would you take out a loan just to pay off another loan? However, this makes more sense when you look at the benefits you could get. For instance, if you can get your interest rate lower on the new loan than your existing loan, it’s a good idea to refinance.

    Typically, people are going for the lower interest rate. However, there are other reasons to do this. These reasons could include switching from a fixed-rate mortgage to a variable mortgage, or vice versa. One could also make the switch in order to shorten the length of their mortgage.

    Lower Interest Rates

    One of the main reasons people will refinance is to get a lower interest rate. As a general rule, if you can reduce your interest rate by at least 2%, you should do so. In a market with historically low interest rates, you should also consider getting a fixed-rate loan, which will lock in a rate for the duration of the loan. This can give you peace of mind that the loan will remain stable even as the interest rates of the market go up.

    When one gets a lower interest rate on their mortgage, they have two options. First, they could simply opt to have lower monthly payments. This is great for people who might not have a lot of money left over at the end of the month. Another option would be to pay off the loan faster by keeping the payments the same. This is a great option for people who aren’t having any issue meeting all of their bills every month.

    Fixed Rate: The Right Call?

    Should you get a fixed rate loan when you refinance, or should you opt for an adjustable rate? This is a complex question that depends on a number of factors, like the length of the loan and the current interest rates in the market. However, as a general rule, if interest rates are low or your loan is for a longer period, you may wish to get the fixed rate. This locks in the interest rate and gives you peace of mind that you’re not having to keep up with the market’s rates.

    On the flip side, if you loan is longer, or if interest rates are historically high, you may wish to go with an adjustable loan. Adjustable loans change their interest rates based on the market, generally reflecting what you see on the housing market. These allow you to buy-in with a higher interest rate without worrying about getting stuck with it even while rates in the market fall.


  • Best Bookkeeping Software

    Best Bookkeeping Software

    What is the difference between accounting software and bookkeeping software? 
    Accounting software is typically used to summarize financial data and determine the financial health of your business. Bookkeeping software has features that deal with measurement, identification, and recording of financial transactions. Both typically have overlapping features. Most of the best bookkeeping software comes with integration options with leading 3rd party accounting software. According to the US Bureau of Labor Statistics, about 20% of small businesses fail before they complete their 2nd year. Among the many potential reasons for failure, the lack of effectively managing money and bookkeeping is a leading cause. Small business bookkeeping software can offer you the tools and visibility you need to prevent your business from failing.

    Factors to consider when choosing a software: 

    1. Is it mobile friendly? Does it have well thought out features in app form?
    2. Where is my data stored? Cloud storage features ensure that your data is available from any device at any time
    3. How easy is the software to learn? What type of support is offered?

    What should I choose?

    Here are the best options on the market:

    1. Best for Small to Midsized Business- Quickbooks: Excellent features for invoicing and expense management. Design is very well thought out and user friendly. With regard to price point, it is reasonable for home use or business use.

    2. Best for Freelancers- FreshBooks: Freshbooks is designed for freelancers and businesses to manage finances. Seamless integrations with other third party applications are available.

    3. Best for Enterprise-Netsuite: A more robust set of enterprise features. Great features for global business management compliance. Real-time metrics and role based dashboards available.


  • Tools You Can Use to Plan for Retirement

    Tools You Can Use to Plan for Retirement

    Planning for retirement isn’t something you do overnight. It takes years to prepare fully for retirement, both financially and mentally. As a result, it’s always important to have a clear roadmap you can follow for the best retirement package. One thing most people usually get wrong is the timing to start planning for retirement. However, it’s never too early to plan for your retirement. While this task may seem daunting, you must also ensure you have enough savings set aside for your golden years.

    Preparing for retirement is something most Americans struggle with, especially those who don’t have the knowledge to do so. If this is you, these important steps should enable you to start preparing for retirement now.

    Identify Your Retirement Goals & Assess Your Income.
    One of the biggest worries most retirees face is whether they’ll have enough saved to live on during their golden years. But this isn’t always a difficult process. You will simply have to calculate the total amount of cash you’ll receive in the form of pensions, social security, and retirement withdrawals. Add this to the total amount of cash you will have stashed away by the time you retire.

    In addition to tallying your retirement income, it’s also essential that you list all your retirement goals and work to meet them. Identifying your goals early should help you determine your total income and how it can fulfill your other objectives. With a handle of your retirement goals and full retirement income, you should know if your savings are enough to meet your retirement dreams and make them a reality.

    Understand your Time Horizon
    This is the period between your current age and your expected retirement age. This time should map the initial groundwork for you to execute an effective retirement strategy. The longer the time you have between right now the date of your retirement, the more time you will have to craft an effective retirement plan and develop a strong portfolio for your golden days.

    If you are young and have thirty or so years until retirement, you will have more leeway to place most of your assets in riskier investments. And although you will deal with a lot of volatility, stocks have been known to outperform other securities like bonds, over long periods. The kicker here is the word “long,” meaning at least ten years’ worth of investment.

    Additionally, you must understand all returns that outpace inflation to help you maintain your purchasing power during and after retirement. Think of inflation like an acorn. It will start out small. However, given enough time, it will turn into a massive oak tree. In truth, everyone always wants compound growth on their investments.

    Get A Pay Raise
    According to a Robert Half Study, only about 39% of employees negotiate for higher salaries. Asking for a pay raise could help you earn an extra $7,500 annually. Unfortunately, most people fear asking for a pay raise, thinking that their employers might not take too kindly to their requests.

    Imagine you are 25 and receive a $7,5oo pay raise. Let’s assume that your salary remains the same up to the point you retire. If that’s the case, you could earn an extra $300,000 some 15 years down the line. Moreover, you find that most companies base their raises and bonuses on a worker’s salary.

    Generally, you shouldn’t be scared to ask for a pay increment. After all, the odds are always in your favor. Studies show that over 4/5 of employees who always ask for a pay raise always get them, although 33% always receive less than they request. The trick here is to learn how to negotiate with your employer for a higher salary. It’s one of the most valuable techniques you can have as an employee. After all, the worst possible answer you’ll receive is a “no” from your manager.

    Track Your Spending
    One of the best ways to start saving is to track your spending and compare your income to your savings. Essentially, you want to track your savings and note how much of your income you spend on any unnecessary purchases. From here, you will know what you can cut back on to save more. Preparing for retirement relies more on how disciplined you are with regards to tracking your spending and the amount you can save from it.

    Fortunately, there are several online applications that you can use tot racking your overall spending. Apps like “Spending Tracker” are excellent for manually tracking every dollar that enters and leaves your account. You only need to be disciplined enough to track and record every single penny you receive and use.

    Take Full Advantage of Retirement Accounts.
    Whenever possible, you should also strive to increase your retirement contributions up to the maximum limit allowed by your 410(k), IRA, and any other financial tools or retirement plans you intend to use. It’s always advisable that you aim to put as much as possible into your 401(k) so you can qualify for any maximum matching contributions your employer may offer. Therefore, by the time you reach your 50s or older, the rules for catch-up contributions will let you set aside even more for your retirement.

    It may also be best to consider account consolidation to help simplify your investment management as you grow older and near your retirement. This will help to provide you with a much clearer picture of what your total retirement assets are and how much they value. You may also need to consider combining similar IRAs with one institution and review any 401(k) accounts you still have with your former employees. Basically, there are several steps to cover here, and you might need to have a professional help you with the documentation.

    Institutions with Retirement Planning Tools You Can Use
    Some of the most reputable institutions with the financial tools you can use include:
    Fidelity – this institution receives high remarks for its range of financial products and other options you can use. It has a long history of service and doesn’t have opening fees, a minimum balance, or annual costs to open an account. It’s one of the most trusted institutions to consider using for your IRAs.

    Merrill Lynch – this financial institution appeals to most casual traders with its combination of competitive pricing and robust research, Merrill Lynch is another great financial institution to consider using. It also has unlimited free trades on ETFs and stocks, which makes it a favorite among most customers.

    TD Ameritrade – many other institutions use TD Ameritrade for their customers’ IRAs and like the provider for its track record of excellent customer service. Opening a TD Ameritrade account also takes a little as 15 minutes, which is something most clients appreciate. It also doesn’t have any hidden charges attached to its clients’ investments.

    SoFI – SoFI is another online brokerage that makes IRA investing very simple. It may not offer as many features as most of the other larger competitors, but you can find everything you need using this financial institution. SoFI is known for helping several customers manage their traditional IRA or have the institution manage them on their behalf. Either case, you won’t face any recurring account fees.

    Diversify and Invest for Growth
    While it’s always tempting (even easy) to shy away from stocks to minimize risk, the growth that these types of investments provide is always very important. However, you may need to consider maintaining a mix of stocks, mutual funds, bonds, and other assets that fit your, liquidity needs, risk tolerance, and investment time horizon.

    As a result, it’s always important that you examine your income sources in advance before you retire. This should give you more time to adjust any plans you have if need be.

    Having a well-balanced portfolio should help you to weather any downturns and possibly generate the income you need to cover any expenses you may incur during retirement. The Merrill Edge Asser Allocator is an especially effective financial tool to use in this regard. Remember, it’s important that your portfolio is always in line with all your investment objectives and meet all your retirement needs. One thing you must note is that diversification doesn’t entirely protect you against loss, especially in declining markets.

    Downsize
    Most people downplay this critical factor, but it’s also just as effective as cutting back on your overall spending and saving more. Therefore, if you live in a very large home and have space you don’t need, you may need to consider downsizing to a smaller home when you retire. This can be very cost-effective, especially if you live by yourself. The cost of living in your current location may be much higher compared to the cost of living in other places around the state or county.

    It may actually make more sense to live in a different state or city or swap your large home for a smaller one. This is one of the most effective cost-cutting measures for retirement you can use.

    Start Paying Off Your Debts.
    Debt has become a major problem for most senior people, especially during and after retirement. More people retire with more debt than ever before. Debt payment is usually a huge burden for employees on a fixed income. The last thing anyone needs is to spend their withdrawals or Social Security money from their retirement accounts on paying off credit cards and other loans.

    Sure, if you are unemployed at the moment, you may not consider debt payment a priority. However, if you have a job or your unemployment benefits equal the salary you made while working, this may be the best time to start paying off your debts. The current low interest rates also mean you can refinance your high-interest debts at a much lower rate, making repayments easier.

    Start paying off your debt easier, so you don’t have to later towards or after your retirement. It becomes a lot harder then.

    Determine Your Retirement Spending Needs
    It’s not unusual you start planning for your post-retirement needs right now. In fact, it may actually work in your favor as you will know exactly how much you should invest or save to meet your post-retirement spending needs.

    Therefore, having realistic expectations about your spending habits post-retirement should help you to define the best size of your retirement portfolio to work towards. After they retire, most people believe that their annual spending amounts to only 70% of what they spent previously. This is far from true, and one of the most unrealistic assumptions you can ever make, especially if you haven’t finished paying your mortgage or some unforeseen medical expenses occur.

    It’s not uncommon for new retirees to spend their first few years splurging on tours and travels or other bucket-list goals. But the best way to ensure you meet all these goals without running bankrupt at the end of the day is to start planning early.

    Invest in a Good Financial Advisor
    Another critical step to take now is to search for the right financial advisor to help you manage your money. You want someone who can provide you with the financial guidance you need to make the best personal finance decisions. Institutions like Smart Asset play a critical role in designing a financial plan to help you even post-retirement. You can also always seek advice from your family members and close friends on the best financial strategies to take now to help you create a stronger portfolio for your golden years.

    The Bottom Line
    An important fact to always have with you is to work hard now so you can relax later. After all, nobody is looking forward to reaching their sixties with nothing in their bank accounts to show for the several years of hard work and labor they invested in work. You will end up regretting every single penny you spent on unnecessary things when you could have invested or saved that money.

    Take care of your financial situation today, before it gets to a point where you can’t make much of a difference. And you can do this by carefully analyzing your spending and determining where you should cut back on. After all, the only way you will save more is by making painful sacrifices so your future self can reap the fruits.