Top 5 Good Money Management

December 19, 2012

Money management is so important. We all want to make sure we don’t run out of funds to meet our daily needs and wants as well. Here are few smart money tips that can help us with money managing.

  1. Avoid Late Fees. This is so critical. Speaking from experience, I ended up paying my bills like student loan, credit cards, store/retail cards late and guess what I had late fees added to the balance. I paid every month but it seemed like the amount I owe only increased. Not only late fees were added but the interest as well. So I created a little calendar with all the due dates and made sure that I paid on time. In fact I switched to online payment for all my cards and loan. That way I was able to pay any time before the due date. I didn’t need to wait for the paper statements to arrive.
  2. Create a Spending Plan. All of us have expenses and how we address these expenses is very important. Just the way we have a weight loss plan – what to eat for breakfast, lunch, dinner plus snacks, etc; we need to do same with our spending. How much we are going to spend on food, household goods, clothing, school, and so forth. This will help you track and control how much money is spent. You will be thrilled how helpful this simple tool will be.
  3. Read your Bank Statements. Do you ever read your bank statement or do you put them in a shredding pile. Be informed about what’s going on with your checking and savings accounts. Are there any fees charged, if so then find out why. Did you get the interest on your Savings? If you used your debit card to make purchases then make sure correct amount was withdrawn. Many times it has been noticed that buyers get charged twice. Keep track of your transactions.
  4. Protect Yourself. You probably have heard there have been so many identity thefts where someone assumes your identity and opens accounts like bank, credit cards, cell phone accounts and so forth. You can protect yourself by checking your credit report more frequently. Or you can get protection like LifeLock. LifeLock help protect you against more than just credit fraud, they alert you whenever they detect your personal information being used to apply for wireless services, retail credit, utilities and mortgage loans . Also if you become a victim of identity theft while you are a LifeLock member they will spend up to $1 million to hire experts, lawyers, investigators, consultants and whoever else it takes to help your recovery. You can learn more by visiting lifelock.com. LifeLock also offers a 30-day Free Trial plus 15% Off Site-Wide at LifeLock.com. Take advantage of this great opportunity. There is nothing to lose.
  5. Emergency Fund or Savings Account. If you don’t already have a savings account, then try to get one. You can use this money to meet your short-term financial goals. For long-term you can get Certificate of Deposits (CD) or open a retirement account. Usually it is recommended to have a minimum of three months’ worth of living expenses set aside. This money can be used in an emergency case like loss of job, unexpected house repair, auto repair, school tuition, etc.

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