3 Tips to Help Strengthen Your Personal Finances

With the first half of 2024 in the rearview mirror already, now is a great time to revisit and fine tune your finances for the remainder of the year.

Inflation and elevated interest rates have continued to have an impact on many consumers’ finances this year, but there are steps you can take to help strengthen your finances.

Here are tips to help refocus, strengthen and streamline your personal finances.

Refocus Your Spending and Saving

To get started, take inventory of your various accounts, including any bank accounts, credit or loans, retirement accounts, and more to ensure you have a clear picture of your current financial state.

A WSFS Money Trends survey found 60% in the region are spending more on groceries and 53% on transportation than the prior year, emphasizing the importance of reviewing your expenses and revisiting your budget regularly in the current economy. Bucket your expenses into categories to look for areas where you can make cuts if you’re finding your budget is too tight.

If you find yourself with extra room in your budget, redirect that money into savings to help build your nest egg. Consider taking advantage of elevated interest rates for your savings with tools like certificates of deposit (CDs) and money markets, which tend to offer higher return rates than a standard savings account.

Say Goodbye to Paper Checks

We’re living in a digital world and that can make streamlining your finances easier in many ways, including reducing or eliminating the use of paper checks. Check fraud increased significantly since the beginning of the pandemic, underscoring the importance of reducing check usage, particularly ones that must be mailed to the recipient.

If you’re still receiving your paychecks in paper, setting up direct deposit can help streamline the speed in which your funds are available while eliminating the need for a trip to the bank or ATM. Some banks also offer the ability for eligible direct deposits to be available in your account up to two days early, which can provide additional flexibility for your finances.

If you’re still mailing checks for your bills, setting up bill pay in your online/mobile banking can help get your bills paid without the risk of mailing a check. Many service providers also have the ability to schedule autopay directly through their websites or apps as well, just ensure you have a handle on when each payment will be withdrawn so you have the funds available as needed.

Rein in Your Debt

While some economic indicators are predicting the first rate cut from the Federal Reserve this year to take place in the near future, it is important to stay on top of your borrowing and debt whether rates are high or low.

Credit card rewards have attracted many consumers in recent years, as have newer borrowing tools like buy-now-pay-later (BNPL). With the ease of purchase that can come with these products and shopping online it is vital to have a handle on your various accounts to ensure you’re not overextending yourself.

If you have multiple loans or lines of credit, put a plan in place for how you will pay each off. One way is to focus on paying off the debt with the highest interest rate first to limit the amount of interest you accrue.

Another option is to consolidate your debt, which can potentially reduce your overall interest rate while also providing the convenience of one monthly payment. Among just a few options for consolidation are personal loans, home equity lines of credit (HELOCs) or home equity loans for those who own a house, or utilizing a credit card with a 0% introductory rate on balance transfers.

Which option works best for each consumer will vary based on their unique financial situation. If you’re unsure what might work best for you or want to put a plan in place to strengthen your finances, consider scheduling an appointment with your local banker, who can walk through your finances and goals to help build your roadmap to success.