Ok the simple answer is to place money in that secret hiding place in your wallet and then forget it is there. But some how we always remember it is there! Here are some other tips that might help more:
- Track your money. Once you realize how much impulse buying and other indulgences cost you, it will be easier to tell yourself “NO!”
- Stay financially secure by using caution. Don’t give anyone your Social Security, credit card, or bank account numbers unless you know why they need them. Never give a pin number to anyone! Don’t leave bill payment envelopes at your mailbox. Drop them in a postal mailbox. Review credit card statements, bank statements, phone bills, etc. for unauthorized use.
- Keep only one major credit card and use it sparingly. Set your own credit line and don’t charge more than you can comfortably repay. Just because you have a $2,000 credit line doesn’t mean you have to spend $2,000. Pay cash when you can and if you like the convenience of plastic, check into getting a bank debit card.
- Keep a personal budget. Give yourself an allowance. Track your spending to find where your money goes and then choose between your wants and real needs. Budget for a month at a time but set aside some time to review your finances each week.
- A budget is like a diet. Just because you broke it today, doesn’t mean you can’t start again tomorrow. If you go over budget this week, make sure to stay under budget next week.
- Build an emergency fund. Save change in a piggy bank or jar. Deposit $5.00 a week from paychecks in a savings account when you cash your check.
- Use a separate calendar for expenses so you are not late. Late charges can add up to hundreds of dollars. Any calendar with big windows with room to write in amounts will do. Or some of you have iPods with alerts. Use the calendar windows or iPod to note:
- Due dates for payments
- Upcoming expenses like the electric bill
- Upcoming activities where you’ll need cash. (groceries, birthdays, etc.)
- Ask for help when you need it. If you run into a financial disaster, call your financial planner or banker and let them know you’re in trouble. If an unexpected event changes your home financial situation, don’t give up. Maybe your budget just needs a tweek.
I use a Christmas Club savings account to deposit my change once a week. If I don’t do it weekly, then I tend to need that money for something else. Believe it or not, but I end up with $600 annually doing this. If you have other ideas, please share.
The Money Mom
