Take Control of Your Money: Less Stress, Less Surprise

Your finances are a very serious subject and something that works for one person may not fit into another person's goals or income level. Therefore, my advice is to scan articles and then read in depth the portions that will address your issues. And do not take any comments or suggestions as being directed specifically at you, pick and choose what is of value to you.

Bank Accounts

Banks offer a variety of services and fees. Talk to your bank or shop around for free checking accounts, free ATM activities, free on line bill payments and transfers. Ask questions such as "Is this a limited time offer, and if so, when and how does it change?" or "Is there a maximum number of transactions before a fee occurs?"

Sign up for Internet access to your accounts and verify all your balances two or more times each week.

Limit the number of checks you write each month. It is easier to know your current balance.

Open a savings account to separate funds for a vacation, Christmas, or any other worthwhile reason. Do an on-line bank transfer each time you get paid. You can set up the transfer to occur automatically, but if you make the transfer yourself, you can decide if there is an unexpected bill that needs to be paid instead. The savings account also serves as a safety net for crisis funds if they are needed.

When a bill arrives in the mail, place it in front of the computer monitor. The next time you open your Internet browser, use the bank's bill pay feature to schedule the bill to be paid two to four days before the due date. Write all the information on the bill and file it. Bill pay will show a total of scheduled payments that will be deducted from your bank account, including credit card payments. You can constantly compare the cash available to the bills to be deducted and adjust your spending accordingly. Note: I prefer not to sign up to allow vendors to automatically have their payments deducted from my bank account. If I receive the bill, I will inspect it more closely and compare it to previous expenditures, especially utility bills, and I can also schedule the payment for the date I prefer it to be deducted from my checking account.

Cash

Using cash can be a great way to control credit card spending.

Do not charge any amount under $12 to a credit card. Small charges add up quickly on a credit card and make it hard to control card balances
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Decide on a cash amount, per person, that can be spent each week for small purchases or fast food. The amount will depend on your own budget and whether or not you will pay for your lunch with cash, if you work. When the cash is low, spending ceases or slows. The good news is that it will probably be only a day or two until the next week's allowance kicks in!

Groceries. Shop at a large grocery store no more than one time a week, preferably every other week. Allow a weekly amount, depending on the size of your family, for cash grocery purchases less than $12. Don't go to a big grocery store if you only need three or four items. If you go in for milk, bread, eggs, and fruit, it is likely you will spend $40 to $70 before you leave the store. There are businesses that have only a small grocery section and the prices are comparable to the larger stores. For example, in Braum's Ice Cream Store, some of the grocery items are priced a little higher and some a little lower, so it all averages out. Note: Go with a mission in mind and ignore cookies, ice cream, etc. Buy only the items you need. In a much smaller area, it is easier to ignore foods that you didn't stop for.

Credit Cards

If you don't see it, you won't buy it. Simply translated, shop less. And yes, the common belief is that women usually enjoying shopping and men shop as if they are on a mission, carefully thought out with a quick, decisive strike to accomplish their goal. Or better yet, if a man has a female that will clothes shop for him, most men are relieved and possibly grateful. But men are the ones that prefer to see their favorite football team life size on their HDTV.

Stay away from temptation. Don't browse, and that includes the Internet or newspaper flyers. You are almost certain to find something you want or need.

Reward yourself. Make dining out, shopping, or browsing a treat when you have accomplished controlling your spending for a set period of time.Have a plan with an end in sight. If you have a goal, you can manage one day at a time until the goal is accomplished. However, set limits on what you spend when you are rewarding yourself and you will not feel like you erased all your accomplishments in one day.

Carry one or two credit cards and leave the rest at home.

Check your credit card balances on the Internet at least twice a week. It is easy to be surprised when your credit card bill arrives. It is difficult to keep up with balances unless you keep a daily ledger, which is time consuming and not a fun thing. It's easier to monitor your account balances on line. You can also be aware of unauthorized charges faster.

Your most used credit card should be one that gives rewards and should be paid off monthly. Set a monthly charge limit and stick to it. If you want to purchase something and you have reached your monthly charge limit, wait until the billing date has passed before purchasing. (Billing dates are not always the same calendar date each month so check on line to see when the statement period ends.) Why is the card with rewards paid off monthly instead of another card?Because you need to work toward paying off the other card(s) balance(s) and use them only if you have reached your monthly limit for your rewards card (which should be rare) and you might have to pay for a purchase over two or three months. Interest on small amounts is preferable. Having a second "emergency" credit card avoids the temptation of ever getting behind and leaving a balance on your reward credit card. Reward card balances are to always be avoided. No exceptions. Exceptions can turn into habits.
Credit card number two may be the one (hopefully only one) credit card that has a balance and charges you interest each month. When I see an interest charge on a credit card, I think of what I could have bought with that interest. Think of it this way.You can buy more if you pay off all your credit card balances each month.