7 Smart Money Habits
Put more money in your pocket by developing with these tips.
One of the hardest things about money, is that it’s so easy to spend. That’s why it’s important to develop some smart habits that not only help you minimize your spending, but maximize your savings. The following simple habits can help put you in a position to achieve your financial goals, and put more money in your pocket.
Simplify your budget
Budgeting sounds like a no-brainer, but it can be hard to know where to start. One way to make budgeting just a bit easier is to follow the 50-30-20 rule. That entails allocating 50% of your income to needs, 30% to wants, and 20% to savings. Our budgeting tools can help you stay on top of your budget.
Pay down high-interest debt
Paying off high-interest debt before low-interest debt is one of the smartest ways to save money. Even though you may want to pay off your student or car loans as fast as possible, if you have a credit card with an interest rate that’s twice the amount, you should be paying that balance down first. Transferring your high-interest debt balances to a single line of low-interest credit is another smart way to save yourself from racking up debt due to higher interest rates.
There’s nothing like the smell of a new car, or a new pair of shoes—except maybe the smell of freshly-saved money. Buying things pre-owned of gently used can wind up saving you tons, because brand-new items depreciate in value at an incredibly high rate. This is especially true for larger-ticket items, like cars, homes, electronics, furniture, etc.
Whenever possible, set up auto-pay for your bills. This will ensure that you’re always up-to-date on your bills and avoid late fees, which can impact your credit health. Sometimes, simply going paperless can help save you money on your bills. To automate your payments, take advantage of Web Pay, which is quick and costs nothing.
Save the excess
Anytime you get an unexpected influx in income, save it. That includes Christmas bonuses, tax refunds, inheritances—any money you don’t already have factored into your month-to-month budget should go directly to some type of savings account. And any time you get a raise, increase your contributions to your 401(k) and IRA accounts as well.
As simple as it sounds, eating out can eat up a lot of your monthly income, especially if you have expensive taste. If you can limit the number of times you eat out, and instead dedicate more time to cooking at home and prepping meals for the week, you can save hundreds, or even more, every year.
Want to improve your financial wellness even more? Check out our free Credit Consultation service! We’re here to help you reach your goals.
This information is for educational purposes only. It should not be considered legal or financial advice.