Save Money – Find it in Your Statements!
A big problem is that in this hectic world we live in these days, alot of people DON’T look at their credit card and bank statements. They get them in the mail, toss them on the desk or put them in the “To Pay” box. When it comes time to pay the bill, they pull the payment coupon off and write a check and just throw the bank statement in the “To Be Filed” box. They didn’t look to see that they were charged $25 for a late payment last month or that they were charged $22 for overdraft fee from spending what they didn’t have in the first place.
What could you do with an extra $25? Put it in your savings for that goal you are saving for. $25 will go a long way at the grocery store (with coupons!) or how about paying ahead on a utility bill?
Another part of the problem is that people think “Oh, it’s just 25 bucks”. Yes, it is $25 bucks but if you have 4 of these “just $25 bucks”, suddenly you have $100 bucks! And that is alot to not think about having thrown away. Depending on what the fees are, and these credit cards can be rather hefty, especially with the credit companies increasing minimum payments, those late fees can add up faster than you think.
The Solution
Remember: Spending is not only related to the cash you have available, but also how you LOOK and USE the cash you have available.
Don’t sweat about “balancing your checkbook”. Do it the simple, common sense way. ADDITION AND SUBTRACTION!! Add your deposits in, and subtract the payments out – and watch your balance. THE ONLY MONEY YOU HAVE AVAILABLE TO SPEND IS THAT BALANCE. Don’t spend more than your account’s balance. Just because you have blank checks in the book, doesn’t mean there is money to cover them! If your balance is $292, then you only have $292 to spend. Don’t spend more than that until you make a deposit! It is quite simple and easy.
Pay your bills on time. Of course you know that, but how do you do it? Organize your bills according to due dates, and make payments twice a month. Those that are due by the 15th and those that are due by the 31st. If you organize a system and use it wisely, this horrible task will not be so horrible, and you won’t be looking for reasons to “put it off until tomorrow”. You’ll be glad to get it done so quickly!
Pay online: I just started learning how to do this, and it is pretty easy. Some allow you to pay online, some don’t. Just find out which ones and pay accordingly. Every time you pay online, you save yourself 39Ã?¢ in postage, and it is there and done with. If you have to mail it, then you have to watch when it gets there, incase it gets lost in the mail. JUST REMEMBER: As you pay online, have your checkbook in front of you and record the transaction immediately! If you don’t record the transaction, you might forget you made a payment and think you have more money in your account. Bounced checks are not only costly in fees, but they are bad for your “reputation” in the checking industry and can cause you big time problems!
Put your credit cards away. If the balance is high, take the card out of you wallet and hide it safely. No sense carrying it around if you can’t use it. Plus, the less you SEE your cards, the less you’ll think “Oh, I can use that card….” REMEMBER: Everytime you use your credit card, your minimum balance required for payment next month WILL RISE!!! It was only $60 last month, but with charges this month, it will be $75 – will you have the extra to cover that?
Don’t carry your credit cards around all the time. This just makes it easy to buy on whim. If you have a specific shopping spree you need to do, okay, carry one card. But just “shopping” at a discount store or drug store, you know you are going to find a bunch of things, that you will buy but really don’t need – thereby running up the credit card balance and increasing your minimum monthly payment.
So watch your cash, watch your spending and watch your brain when it tells you to spend,spend,spend. You need to tell it No, No, No and give it a time-out!
