Tracking how your spend your money may seem like a difficult task. By taking preemptive action and keeping track of every tiny thing that goes on in your finances, you can save yourself a lot of trouble down the road. Online banking and other new tools can make it easier for you, but you have to know how you spend your income.
If you are trying to get the best credit score, you shouldn’t have more than four credit cards. Having just one card means slower accumulation of good credit, but having five or more cards can add unnecessary complexity to your finances. You should start by getting two credit cards and applying for a third or fourth one as needed.
Financial Stability
By having a savings account that you deposit into regularly, you will be building financial stability. Having something to fall back on in an emergency is key to financial stability. Saving a small amount, even ten dollars a month, helps you build your savings over time if you do not have a lot of extra income.
Try to negotiate some options when a debt collector contacts you for a payment. Your debt was probably purchased for a small amount of money. You could end up only paying a fraction of your debt. Use this to your advantage and pay off your debt for a low price.
Having a garage sale is a great way to make some spending money and also rid the house of clutter. Some people allow you to sell their items at your garage sale for a fee. Garage sales offer limitless opportunities for creativity.
Find a checking account that is free. Credit unions and local banks are a good place to start looking.
Try not to get too much money from a student loan, unless you’re able to repay it back. If you are planning on sending your child to a private school, strongly consider other options that make financial sense.
If you take advantage of online banking and bill paying, see what kinds of alerts you can set up with your bank. Most banks have customer-friendly programs that offer alerts via text message or email when key events occur in your account. You should especially utilize security related alerts that notify you of events that could create a risk of overdraft, or be related to fraudulent activity. For example, you can set up alerts for when your balance reaches a certain minimum, or when a large withdrawal is made.
A lot of people frequently spend over $20 a week on lottery tickets in the hope that one day they will win the jackpot. However, you would be better off investing that money in a high-interest savings account that is sure to bring you benefits instead. That way, you are certain to grow your money rather than flushing it down the toilet.
You should open a savings account where you can sock away money to use in the event of an emergency. Save for some goal that you want to achieve, such as paying off a debt or saving up enough money to go to college.
Timely Manner
Pay your utility bills in a timely manner. Paying them late can damage your credit rating. You may also be charged a late fee, that will cost more money. Paying your bills in a timely manner will help you gain control over your finances.
If someone wants to buy something but it is too expensive for them to get right away they may be able to involve their whole family. If it’s something that the whole family could find a use for, like a new TV, then the family may be able to be convinced to put their money together.
If there is an old laptop sitting around, turn this into extra money easily. If it’s working or it can be fixed then it can go for a little more money than broken ones do. Even if someone sells a broken laptop, it will probably at least cover gas for a car or something in the same price range.
Setting up a cash allowance for yourself can be a good way to avoid the temptation to overspend and sap your savings. You can buy video games, books, whatever you like, but when you run out, the spending stops there, no extra! This will help you get a better grasp on what you’re spending, and help you to choose your purchases more wisely each month.
It’s normal for people to make mistakes, and it happens to everyone, especially when it comes to finances. Your bank may waive a bounced check fee if it was a one time mistake. This is for someone with a consistent record that avoids overdraft, retains balances, and will most likely only work once.
Target ATMs that belong to your bank, so as not to incur fees associated with the transactions. It may be less convenient, but worthwhile. When you use an ATM that doesn’t belong to your bank, you’re often charged a significant transaction fee. Even if the fee is only a dollar or two, it can add up quickly.
When you track your money, you dramatically increase your chances of avoiding banks charging your for overdrafted accounts or not having enough money when a situation arises. Relying on your own monitoring rather than a bank can give you peace of mind about your money.