The team at Truebill notes that the new year can be a good time to “reset your finances,” and they would like to help you out with that.
The company recently shared some practical ways to help improve your finances in 2022. The firm recommends changing how you “think” about money management.
The Truebill team writes in a blog post that many consumers find the process of budgeting to be “restrictive when it’s really a roadmap to help reach your financial goals over time.”
As explained by the firm:
“By allocating your income to pay down debt, save, and/or invest consistently, and sticking to that plan, you’re helping yourself build your best financial life. So if the word “budget” doesn’t work for you, consider calling it something else, like a “financial roadmap” or “prosperity plan” to help keep you motivated.”
The firm also reminded clients that they can update their budget in Truebill.
The company pointed out that you can easily “start a budget” via the Truebill app, which is “separate from the spending tab.” Although the spending tab will show you where your money is going, it’s good to have “a budget in place to make sure you’re progressing towards your goals.”
The Fintech firm also noted that to get started, you can navigate to the Spending tab and click “Start a Budget.” If you’ve already built in a budget, you just have to “tap the gear on the top left side of your screen and click “Manage Budget” to update it for 2022,” the company explained.
The firm added that if you haven’t already, “now is a great time to set up a savings goal using Truebill’s smart savings.” You can even “set up multiple accounts to separate your emergency savings from other goals, like saving for a downpayment on a home,” the company noted.
The firm also mentioned that a smart savings account from Truebill is “so much more than your standard savings account.” Using their AI-enhanced smart savings account, clients can “identify how much [they] should save towards a specific goal” and “automatically transfer funds to that account for you.”
You can also let the company know if you “prefer to set aside a specific amount on your own (instead of us doing the work for you).” As noted by the firm, your smart savings account is FDIC insured “in a U.S. bank account, and you can withdraw your money at any time.”
Truebill even “sets up a buffer to ensure [they] don’t overdraft from your account, pausing any automatic transfers until they’re sure the coast is clear.”
As noted in the update:
“So long as you have sufficient emergency savings in place, the start of a year is a great time to determine whether or not you might be able to accelerate your debt repayment. This means that in addition to making the minimum payments on your debt, using either the Snowball or Avalanche method, you’ll make an additional payment to pay down the principal balance, saving the amount you’ll pay in interest over time.”
The company also mentioned:
“In addition to any savings goals, revisit your investment contributions for 2022. This might include investing for retirement as well as other investment goals. Did you know that using your 401k or employer-sponsored plan to ‘save’ for retirement means that you’re already investing?”
Truebill further explained that “tax-advantaged” accounts “provide tax benefits that allow you to grow your money much faster than a standard brokerage account, so take advantage of them if you can.”
You can even have “more than one tax-advantaged account (like a 401k and an IRA, for example),” the firm revealed.
For more details on this extensive update, check here.