Last year, Americans spent a collective $15.3 billion on Father’s Day. That means we spent $133 per pop, unless you’re a Millennial. In that case, you spent closer to $200.
That’s a lot of money to spend on a man whose answer to the question “what do you want?” is always “I don’t want anything”. Because, let’s be honest, your dad doesn’t want that #1 Dad mug or paisley tie. He’d rather you spend your money in better ways.
So, in honor of Father’s Day, exit out of that tab of novelty gift items and focus on this list. Here are some financial tips that will make dad proud.
1. Draw Up A Budget
Can you say, without a doubt, where your money is going every month? You can probably account for the big things that are the same every month, like rent or utilities. But once you start to tally smaller, variable expenses, things get a little tricky.
A budget cuts out all the guesswork by tracking every dollar that goes in and out of your bank account. This detailed look at your finances gives an exact snapshot of how you spend your money.
If you’re like many people living paycheck to paycheck, it’s probably not a pleasant sight. But a budget does more than air out your dirty laundry. It offers a chance to change your habits. You can focus on removing bad spending habits from your life to free up cash you can put towards debts, savings, or a better Father’s Day gift.
2. Prepare For The Unexpected
It’s a tall order, planning for something you can’t predict. But the ability to be ready for anything is a cornerstone of good money management.
Contributing to an emergency fund means you’ll have the money to handle things, and saving a portion of every paycheck is the way to do it.
Most financial advisors recommend putting aside between 10–20 percent of your income, but anything is better than nothing. If all you can afford is $10 a week, then commit to saving $10 every week. In a year, that will turn into $520.
3. Cultivate Your Credit Score
It’s possible to go through life with a low credit score, but it makes everything harder — from getting approved for a mortgage and credit card to getting a rental apartment or new job.
Having good or excellent credit makes all of these things easier and potentially cheaper. Financial companies usually offer better rates and terms on products to people who prove they’re good with credit.
You can be one of these people by:
- Paying bills on time, every time
- Limiting how often you open and close credit accounts
- Reducing how often you carry a balance on your credit card
4. Research Lending Alternatives
Like building savings from scratch, pulling up your credit score takes time. It may take several months or even years of dedicated work.
Unfortunately, life rarely waits until you’re ready for an emergency. An unexpected bill may arrive when your funds and credit score are low.
In an emergency, you can rely on payday loans from direct payday loan lenders online. These lenders may not disqualify you for having a low credit score, and their payday loans often work faster than most traditional personal loan options.
When searching for a cash advance, make sure you only work with online direct lenders that have a state license. This ensures they have the appropriate certification to do business in your state and helps you find a responsible option.
Making responsible decisions is all your dad could ask for this Father’s Day, so take some time to take stock of your finances. And don’t forget to call your dad.
Fathers all over the world have become famous for their puns and dad jokes, but they’re more than just a source of groan-inducing wordplay. They’re a goldmine of practical financial advice. Just ask yours. Once he gets started, there’ll be no stopping him.
