Simple Ways To Start Making Better Money Choices
While the old saying is true that money isn’t everything, it does play an enormous role in our lives. That’s why it’s important to do the best with what you have to stretch those dollars. The path to making smart money choices can be challenging but it isn’t complicated. In fact, it’s mostly about being aware, avoiding overbuying, and doing some simple planning.
We have compiled the best tips for making choices that will help you take care of your money.
Pay Yourself First
This advice never goes out of fashion because It’s important. Having money saved for a rainy day or tucked away for an emergency is important. Make sure you have payroll contributions set up to retirement accounts and automatic transfers set for savings accounts. Even if it’s just $25 a month, that’s a start to readiness for the future.
Be Aware Of Income And Expenses
Do you know what your basic living expenses cost? Have you added up your housing, insurance, car payment, water bill and all the other necessities? How does that compare to your income? If you’re making enough to cover bills but are constantly living paycheck to paycheck, it’s time to look at discretionary spending. Remember, awareness is power.
Ask Questions
Can you lower your bills? It’s a good idea to shop car and homeowners insurance every year. If you get a medical bill, it’s important to always ask questions to make sure services were coded correctly and insurance has paid. Do you use everything you’re paying for or is there a cheaper alternative? Use the Card On File tool in the VCNB Mobile app to find out what companies have your card on file. Questions can save a lot of cash!
Always Pay On Time
Make a point of always paying bills on time. Not only will that save you money on late fees, timely payments prevent dings to your credit and helps you have a good relationship with creditors. Plus, it’s hard to catch up once you have fallen behind.
Automate When Possible
It’s easy for time to slip away and for money tasks to fall behind. Use automated tools when possible. Direct deposit takes care of your checks and online bill pay can be set to automatically pay bills. Some companies even offer a discount if you sign up for autopay. Schedule automatic transfers to move money from your checking to savings and Account Alerts can remind you when a loan payment is due, a deposit has been made or when your account balance is low.
Curb Impulses And Entertainment Shopping
Curbing unnecessary spending is hard because there is so much temptation and even pressure to buy. Before you go shopping, make a list and stick to it. Avoid recreational shopping. Even delaying a purchase by an hour or a day can cause you to change your mind. If you spend your weekends shopping for things you didn’t know you needed or always have an online shopping cart started, you may find there are better ways to use your money.
Create A Plan
One of the best ways to use your money wisely is to create a spending plan or a budget to help you stay informed about your own money. It can be as simple as pen and paper or as high tech as an app or spreadsheet but you need some way to keep track of where your money is needed and where it is going. Some people even write down every dollar they spend so they have a more complete picture.
Check In With Your Money
Schedule a regular check-in with your money. Perhaps on payday, take some time to check balances of your bank accounts as well as your loans and credit cards. Then schedule bills for payment and pat yourself on the back because the heavy lifting is done.
Take note that most of these tips center on awareness and simplification. By simply paying attention, it is possible to keep your money in line and working smartly for you.