Being Smart With Your Money – 5 Top Tips

Written by on August 14, 2013 in Money - No comments | Print this page

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money_mistakesWith the economy still in the dumps, you should be on the constant lookout for ways to save money.

By lowering your living costs, you’ll have more money in the bank, leading to a much more stable financial life. Here are the top five tips that will help you be smart with your money.

Shop for a Good Checking Account

These days, too many people choose to open a checking account with the bank nearest to where they live or work. While this is convenient, it can literally cost you hundreds of dollars every year.

For example, most checking accounts require you to pay a service fee of around $13 a month, which already amounts to $156 per year. Look for a checking account that does not charge a monthly service fee or fees per transaction. There shouldn’t be a minimum balance either.

Emergency Savings Account

One reason why it’s so hard to save is that it can be hard to get into the habit. Therefore, you should start an emergency savings account or actually contribute to it if you have one.

Every time you get your paycheck, a certain amount of it should immediately go into your savings account. How much you choose to put into your savings account depends on how much you earn, how much money you need to survive, and your goals when it comes to paying off debt or saving for retirement.

Pay Off Credit Cards

The best way to save money for many households is by actually spending money to reduce credit card debt. Debt from credit cards is the most expensive debt for most households.

While paying off your credit card debt as fast as you can won’t earn you money, it’ll definitely save you money as you won’t be able to have an outstanding balance in the future due to crazy high interest.

Therefore, paying off credit card debt is a sound investment, especially since interest rates on credit cards are expected to increase in the next two years.

Utilize Company Matches

Some companies actually offer to match your retirement savings, and if you work for one of these companies, you should definitely take advantage of this.

Instead of spending money to get rid of your debt, consider simply paying the minimum payments and then putting the rest of the money towards reaching the maximum amount your employer will is willing to match.

However, if you have a lot of debt, the money will be better spent paying off the debt.

Graduate Sooner

If you’re attending school, consider taking a heavier course-load or going to school year-round. This will allow you to graduate in three years, which will save you money, especially if you live in dorms.

Some colleges even offer special programs for students who want to graduate earlier to save up to $10,000.

Believe it or not, saving money doesn’t have to be painful and difficult. Whether you want to save money in order to buy a new house or put towards retirement, the tips listed above will definitely help you save plenty of money.

Sarah is a financial guru and has a masters in finance and has set up and run several finance businesses. Sarah recommends Drummond Bookkeeping & Accountancy Services LLP .

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