Have you ever sat down to tackle your finances only to become immediately overwhelmed information overload and all the jargon that sounds like a foreign language? You find yourself confusing APY and APR and wondering why you have a FICO score and a credit score. We’ve all been there. When it comes to finances, information overload is real, and after a while, you just give up. You wanted easy answers and simple solutions only to find yourself inundated with formulas, fee calculators, and a plethora of options for paying down debt. The average person just doesn’t have time to invest in learning financial skills at the level of professionals with degrees and certifications. Even with limited time, by following these steps, you can easily become a personal finance expert in your home.
Step 1: Be Nosey
To be a financial expert in your own home, you have to be nosey. I’m not talking about just knowing bits of information here and there, but I’m talking about being so nosey that Wendy Williams comes to you for the tea. You have to know everything that’s going on concerning the finances in your household. The easiest way to do that is to identify the WHO, WHAT, WHERE, WHEN, AND WHY.
Ask yourself these questions:
WHO are we paying? By knowing everyone you owe money to you’ll be least likely to miss a payment. This information will also help you maintain organization within your budget or family financial planning binder.
WHAT are we paying for? Have you ever looked at your bank statement and noticed a charge for a subscription service you don’t recall signing up? Keep track of what services you’re paying for so that you can be on the lookout for charges that may not belong.
WHERE does the payment need to be sent? Can we pay online, or does it need to be dropped in the mail or dropped off at a location? By knowing where the payment needs to go or how the payment can be made you’ll be able to plan in your financial calendar or schedule the amount to be automatically sent from your bank on a specified date, or schedule a payment using an online bill pay method.
WHEN is the payment due? Is there a grace period for making payments? Find out if you can make payments early without penalty. What is the late fee associated with missed or late payments? Remember, if you miss a payment there may be a chance that with a simple phone you can request that the late fee be removed.
WHY are we paying this amount? Bills can fluctuate. If you receive a bill and the amount seems higher or even lower than usual, do your due diligence to find out why. There is a chance a promotion may have expired, you received a credit, or something wasn’t correctly calculated on your account. To share a personal story, we received a higher than average electric bill this past month. After doing some sleuthing, I discovered an article that talked about a rate hike from our power company. Armed with this information, I know to budget more in the upcoming months for our electric bills.
Step 2: Be Annoying
How many telemarketers or robocalls have you dodged today? The reason why you get so many is that there is a high probability that if enough calls are made, someone will sign up for their offer or unfortunately fall for their scam? When it comes to your finances, being your own version of a personal finance expert is going to take a being persistent just like those telemarketers. If something doesn’t make sense on your account or statement, call the company/bank and get clarity!
While you may hate having to fight through pressing the right button sequence or sitting on hold listening to horrible music you will be able to get a lot more resolved by talking to an actual person and letting them know your concerns. Ask questions until you get the answers you need. If you find the person on the phone isn’t able to give you the information you need, politely ask to speak with someone, who can, typically a manager. If you still are unable to find adequate answers to your question, hang up and call back again. As most calls are sent through a communications center, you’re bound to be put in contact with someone who may know more than their colleague.
Step 3: Be the Know It All
To become your own version of a personal finance expert, you’re going to have become the “know it all.” You know that person in your group of friends who seem to have a “well, actually” response for everything someone says? That’s going to have to be you in your household. You’re going to have to know the in’s and out’s of your finances so well that you can tell if an employee is quoting their Terms of Service wrong (I’ve actually had to do that). You’re not becoming a “know it all” to show off, but you’re doing it to protect yourself. If you don’t know something is wrong, you can’t expect companies to be honest and tell you that something is wrong.
To become the “know it all,” you have to consume one piece of financial information every single day. I don’t mean go out and get a degree or take certification classes, but you should make finances a daily part of your life. Doing this is as easy as listening to a financial podcast, reading a few pages of a book, reading a blog post, tuning into webinars, or even simply reading news articles in magazines like Kiplingers or on sites like Money.Com BlackEnterprise, Businessweek, etc.
The more financial information you consume, the bigger your wealth of knowledge grows.
By following these easy steps, you’ll be well on your way to becoming the personal finance expert in your household!
