Carmen Wong Ulrich, president and co-founder of ALTA Wealth Management, says a strategy called “cut and move” is the best way to improve your financial standing. “Redirect your money from one part of your financial life to another, more profitable area,” she says.
Take a couple of hours to figure out how to cut spending across your budget, she says, making use of online apps and price-comparison sites to find cheaper alternatives on everything from gasoline to cell phone service. Then, move those savings into an emergency or retirement fund, put them toward credit card debt or wherever else they’ll pay off. “This exercise has a big added benefit,” Ulrich says. “It forces you to examine where your money is actually going and how much you’re paying for things. That in and of itself — mindfulness — will change your spending behavior simply because you’re paying attention.”