This Is Why You Are Broke, According to 'The Ramsey Show' Co-Host George Kamel
Managing your money requires taking action.
George Kamel of "The Ramsey Show" recently discussed the important money tasks that people avoid -- which is often what keeps them broke.
Here's a closer look at those money tasks and why doing them can seriously help your financial situation.
Check Out: 5 Money Tasks To Tackle Right Now To Lower Your Tax Bill
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Check Your Credit Report
While Dave Ramsey, Kamel and the entire Ramsey team don't necessarily believe in credit scores, Kamel does encourage you to check your credit report to look for any errors. This can help you stop identity theft or other errors that hurt your credit.
You can get a free report at AnnualCreditReport.com. But once you get the report from all three credit bureaus, make sure to dispute any errors you find immediately. This can boost your score and help you qualify for better rates on loans in the future.
Audit Your Subscriptions
Kamel says that nearly half of Americans have subscriptions they pay for but no longer use. Reviewing your Apple subscriptions or scrolling through your bank and credit card statements to find and cancel unused subscriptions can help you potentially save hundreds per year.
But make sure you don't just cancel a service, but redirect those savings elsewhere. If you find $75 worth of subscriptions you can cancel, maybe use the $75 per month to build your emergency fund going forward.
Calculate Your Total Debt
Kamel (and the entire Ramsey team) is passionate about debt payoff. And you can't pay off debt if you've never totaled up what you owe.
Kamel encourages viewers to review all of their debt balances, write them down and include the interest rate and minimum payment amounts. Then focus on paying off the smallest balance debt first, using the debt snowball method to start your debt-free journey.
Roll Over an Old 401(k)
Kamel points out that millions of Americans leave their 401(k) behind with an old employer, and may get lower returns and pay higher fees. He recommends rolling over your old 401(k) directly to an individual retirement account (IRA) to avoid any potential taxes and penalties.
But before rolling over, it's important to compare fees and investment options from the old 401(k) to an IRA broker. Sometimes it can make sense to leave your 401(k) in place if there are low fees and great fund options. Consult with a financial professional before making this move.
Track Your Spending
Kamel is a fan of reviewing your recent transactions to see where your money actually goes. He highlights that most people underestimate how much they spend in categories like dining out, gas and shopping.
The goal is to get realistic numbers on how much you spend, and then budget accordingly. It's not helpful to pretend you spend $500 a month on groceries when you actually spend closer to $1,000.
Move Savings to a High-Yield Account
Money sitting in a regular savings account earns next to nothing. You can earn 10 times more by just moving that cash to a high-yield savings account.
Kamel encourages viewers to move cash to a high-yield account that earns more interest to make the most of their idle cash.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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