We are starting a new series this week on The Matters of Money. I want to share with you 3 practical money making habits that can change the way you handle your money.
- Keep your savings account at a different bank than your checking account.
Keeping a savings account takes a discipline seemingly honed by few. The key of a savings account is to deposit money set aside for emergencies, hard times, and/or a nest egg into an interest bearing account, detached from your expense account. Outside of those previously mentioned parameters there shouldn’t be any other reason to withdraw any money from your account. One of the ways to keep the discipline of never withdrawing from your savings is to open up a savings account in a different bank then where your expense account is. This will keep you from having easy access as well as being able to see the balance when you login to balance your expense account.
- Buy only what you can afford and what you actually need or really want.
Now to some this may be a mute point. You might say, “of course!” but there are a lot of people who are trying to keep up with the Jones’ proverbially. They spend frivolously, for any reason. If they are emotional they spend, for any reason, any day, any time, THEY SPEND. This is a great principle to enforce to increase your discipline. Let’s say you have the extra 50.00 to spend on an item, you should ask yourself – do I really need or want it, and most of all can I afford it? Remember this – having an extra 50.00, doesn’t mean you can afford to spend 50.00.
- Balance your checking account
This is a MUST! If you are the type of person that looks at your account balance online and if there is a balance there you spend it, more than likely you are loosing money left and right. Balancing your account gives you insight of your spending habits, it let’s you see if there are any fraudulent items coming out of your account, and it gives you an accurate balance. This point is especially important for check writers, because you can write a check today and it not come out of your account until Friday (depending how long it takes for the check bearer to deposit the check on their end) If you only judge your account by what the balance says online, then you will definitely be looking for some hefty overdraft fees.
Stick with us all week as we discuss the matters of money. You guys have a blessed week!