Create Good Financial Habits By Being Responsible

by Justin Weinger on August 2, 2012

You don’t want to be wasteful and just throw all the money you have worked for down the drain. You might just not be sure about what the easiest way to save money is. You might not want to ask because you do not want to seem like you are not responsible, but chances are they are having issues too. Fortunately, you can learn what you need to know about improving your finances by reading this article instead of asking other people for help.

If you want to make sure you make your credit card payments on time, set your payments to automatically draft from your account. Even if your credit card balances have to be carried over monthly, making the minimum payments before the due dates gives your credit report positive data. By setting up an automatic debit from your bank account, this will ensure that your payments are on time, and you can pay a little extra each month if you are able.

Little things can make a surprising difference over time when you are trying to save money. Giving up your morning coffee, daily candy bar or even soda can add up over the year. You have just saved $25 a week. Instead of driving your own car to work, take the bus. Doing this can easily save you a couple hundred dollars every month. You can add this money up to use for any big investments you might have in the future. It’s going to certainly be worth a lot more than any cup of coffee.

To maintain control of your money, avoid incurring debt at all costs. Not all debt can be avoided. Try to avoid credit card debt. If you borrow as little as possible, you can avoid paying costly interest charges.  If you find yourself in credit card debt, and think you can responsibly handle a short term loan, then Parrot loans may be an idea for quickly paying them down.

Shopping at a thrift store can be very beneficial and isn’t just for people that don’t have much money. You can find a lot of great deals on things like books, furniture and clothes that are of good quality in these stores. The array of rare and interesting goods available, particularly when it comes to clothing, is especially appealing to children and teens. Arrive earlier in the day to take advantage of the new inventory.

Take advantage of your flexible spending account. If you incur medical costs, or have a child that you pay a daycare bill, a flexible spending account can save you money. Flex spending accounts permit you to place pretax dollars into an account to pay for these types of expenses. There are certain conditions to these accounts, and you will have to talk with a tax professional.

Always look over your monthly statements. This helps you to know if there are any fee or rate increases. People often forget to review their bank statements and pay more than they realize. You should also make sure all charges, deposits and check amounts are correct.

Each time you receive a check, the first thing you should do is put some of it in savings. You will never have any money left for savings if you choose to wait to see what is left on the last day of the month. Once you put the money aside, your brain tends to see it as unavailable.

Everyone makes mistakes now and then, especially with their personal finances. One bounced check may be forgiven by your bank. If you talk them, they may waive the overdraft fee. In order to take advantage of this, you will have to have a history of maintaining your balance without any overdrafts. You will only have one chance to take advantage of this though.

Use what you learned from this article to make a few changes and start putting your money aside. The internet has a wealth of information about proper money management – look around and see what helpful information you can find!

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