financial help

Helping Your Kids Financially May Actually Be Harmful

June 21, 2016 By Jennifer Clark 1 Comment

Our kids are our world. We want to do whatever we can to help them and see them succeed, but sometimes, parents can overdo it. An online poll discovered that practically 60 percent of parents provide their adult children who are no longer in school financial support. Additionally, 65 percent of young adults say they feel they’ve experienced tougher financial hardships than prior generations.

Fifty percent of parents say that they have helped their adult child with housing payments. The online poll also showed that over 40 percent of parents have helped their adult children with living expenses, transportation costs. Where does the financial help end?

Watching your kids go through hard times with money is difficult, but there is a difference between helping them and hindering them. Helping your kids financially may actually be harmful, depending on the situation. Instead of always bailing them out or taking on some financial responsibilities for them, here are some things you can do:

Teach them the value of a dollar.

Yes, you have probably heard this before, but instead of giving them money, teach them how to save and how to budget. Educating them about finances will be much more beneficial than handing them the amount they need every time. Offer to match the amounts they save throughout their years in high school and college, which will help to encourage them to not only start saving early but continue saving as well. Putting funds aside will become second nature to them, which will help to pull them out of sticky situations in the future. You can start these lessons early so that as an adult, they are prepared and knowledgeable.

Open a 529 account.

A 529 is a tax-free education savings account that is designed to specifically save funds for future college costs. These work similarly to a 401 (k) where you can continue to contribute funds regularly. If you still have a little one on your hands, you may want to see if family would give cash for this account instead of buying a gift. Check to see what your state regulations are on these accounts and how they work for where you live here.

Guide them in their future.

Communicate with your kids on what they really want to do in their future. A four-year college is not meant for everyone, nor for every career. There are plenty of careers that do not require or do not need four years of schooling. Helping to prevent them get into unnecessary excessive debt will be one of the many ways you can assist them without hindering them. Be supportive and guide them along the process. Keeping that communication open about finances will be detrimental for their future in more ways than one.

Set limits.

If your child does come to you for financial assistance or even needs to move back home due to money struggles, be sure to have an open conversation right away about what you will and will not do. Include your expectations and develop a timeline with them. You may want to also give them some goals you would like them to achieve to help keep them on track. If possible, charge them rent as well. Allowing them to live without any expenses can be extremely harmful to their future.

Get them a job.

If you see your son or daughter is really trying to acquire a job but is having a difficult time doing so, you can use another type of resource other than money to help them: your connections. Use your network to see if you can find them a job, ideally in their field of study (if applicable). Any job will be helpful, though, for their financial situations.

Helping your child financially in times of trouble is not a negative thing to do; however, you do need to recognize the other ways you can help them without directly bailing them out every time. This is not to say you should never help your kids. You just need to set boundaries. They will come to rely on you more than they should for money, and as a parent, there needs to be a time where tough love is enforced.

What would you add to the list? Have you experienced this yourself?

How Same Sex Marriage Helps Gay Couples’ Finances

January 24, 2014 By Danielle Warchol 1 Comment

Same sex marriage is still a tempestuous topic in the United States and despite a growing acceptance and recognition of same sex relationships, there are still many concerns before marriage equality is truly reached. While marriage should be about love and companionship first and foremost, there are a lot of financial advantages that can coincide. Many married couples benefit from tax breaks or combined finances and assets, and a lot of these benefits were denied to same sex couples. Since the Defense on Marriage Act was ruled unconstitutional in 2013, same sex couples have been able to benefit from a number of federal laws regarding marriage. Here are a few different ways that same sex marriage can help the financial situation in a same sex household:

Income Tax

Most married people file their annual taxes jointly and for a long time, same sex couples had to file separately. Being officially recognized by the federal or state government allows them to file jointly and can save them a significant amount of money. Of course, filing jointly won’t be beneficial to everyone depending how much each person earns and what income bracket they fall into, but the ability to file taxes together is a big financial benefit.

Refiling Taxes

The 2013 ruling that struck down DOMA meant that many already married same sex couples had the opportunity to redo their previous three years worth of federal income taxes. Since many people benefit more from filing jointly with their spouse over filing individually, being able to redo three years worth of taxes can be a significant advantage to a same sex household’s finances.

Gift Tax

Under DOMA, same sex couples were subjected to a gift tax when transferring assets of more than $14,000 to each other. This tax never applied to heterosexual couples and tended to cost same sex couples a great deal of money. However, federal and state recognition of same sex marriage or civil partnerships means that this tax can be reduced or eliminated.

Health Insurance

Same sex marriage or domestic partnerships can also help decrease the amount spent on health insurance. Being able to be covered by your spouse or partner’s health insurance will mean having to pay less on health benefits out of pocket. Additionally, the insurance covering someone’s spouse would be tax free as companies would no longer be allowed to consider the coverage of a same sex spouse as additional income.

Heath Benefits

In addition to providing a wealth of financial benefits concerning taxes on health insurance, same sex couples can get reimbursed for medical costs from health flexible spending accounts.

Social Security Benefits

Same sex couples can now get a significant financial boost from social security benefits that have always been available for traditional married couples. For instance, receiving the one-time lump sum death benefit to help pay for funeral arrangements, spousal retirement benefits, and spousal survivor benefits are all options. This is a huge advantage for same sex couples who were previously denied access to their partner’s social security benefits.

Estate Tax

Same sex marriages also mean that same sex couples are exempt from paying estate taxes on any property under a certain monetary limit that one person leaves to their spouse in the event of their death. Married couples can also combine their personal estate tax exemptions.

Retirement Benefits

Same sex marriage can also benefit couples when it comes to retirement plans. Many same sex couples are denied access to each other’s retirement plan benefits, which can put a huge strain on their finances. By recognizing same sex marriage on a federal and state level, same sex couples would have access to their partner’s plans. Most married couples have access to their spouse’s retirement plan and benefits after their die and the money the surviving spouse receives often makes up a large percentage of their monthly income during retirement. Granting this benefit to same sex couples would alleviate a lot of financial stress during retirement.

Financial Aid

In December 2013, the U.S. Department of Education stated that it would recognize same sex couples and marriages when considering financial aid for students. Previously, someone in a same sex relationship had to designate themselves as single when applying for aid, but the new measure allows for recognition of same sex relationships. While this may not have an impact on the amount of aid someone received due to other economic or financial considerations, this can also significantly help students who are eligible for financial aid from the federal government.

Better Financial Security

Overall, same sex marriage can help same sex couples save more money and be more financially secure. Having to pay less money out of pocket on taxes and other expenditures means more money for other necessities. There are a lot of tax breaks that come into play and that will allow for better financial planning and better financial security.

(Photo courtesy of Steven Damron)

Savings Tips for the New Year: 24 Ways to Trick Yourself into a Thrifty 2014

November 21, 2013 By Guest Writer 2 Comments

By Jennifer Bowden

According to the Journal of Clinical Psychology, around 46% of people made financial New Years’ resolutions for 2013, with the key objective being to save. The reality is that almost 40% of these won’t have fulfilled their intentions.

It’s not easy to stick to a savings scheme. For most of us, money goes into a current account every month and we’re determined to save some of it. But somehow we don’t get round to transferring it, it vanishes, and before we know it we’ve spent our entire wage before month end. Oh well, perhaps next month…

Despite all our best intentions, saving is just one of those things that routinely gets left by the wayside. We’ve collected 24 tips to trick yourself into savings discipline, so by the end of the year you’ll be well on your way to building a tidy nest egg for the future.

Start small

A lot of people fall at the first hurdle by not being realistic about their savings capabilities. These days, there’s a lot of speculation about the affordability of later life, not to mention getting a mortgage, weddings and children. the list is endless. When people realize just how much they’ll need to save, the tendency is to panic. But this is almost always counterproductive to longevity. The key is to save little and often – don’t try to overstretch yourself by putting unrealistic amounts away as you’ll struggle to keep it up.

Treat savings like bill payments

For most people, bills are set up to come out of a current account automatically, so as well as always ensuring that the money is there, they acknowledge that it’s going and never count it as their own to begin with. Why not treat savings in the same way and set up a direct debit from your current account to a separate savings account? A good tip is to arrange this to go out almost as soon as you get paid so that you barely even notice it was there in the first place.

Don’t acknowledge salary rises

It’s great to get a raise. But when it happens there’s always the temptation to automatically increase living expenses – maybe eating out once or twice more in the month, splashing out on a couple of extra pairs of shoes or even upgrading a car or living space. Sometimes, it might be beneficial just not to acknowledge a wage increase and instead automatically put the difference into a savings account. It doesn’t make a difference to your lifestyle, but it could have a real impact on your savings pot.

Create targets and review regularly

Fail to prepare and prepare to fail. Not having a defined goal or target can often lead to inertia. Everybody needs to plan for later life, no matter how old or young, and the reality is that 75% of us just aren’t preparing effectively.

It goes without saying that not everyone can save at the same rate or in the same way. For best results, take time to do your sums and choose goals that are both positive and work towards an end result, but that are achievable for your current financial situation. Secondly, circumstances change all the time with regards to finance; you might pay off a debt or find yourself with a short-term savings goal that needs to take priority for a while. Review your goals regularly to make sure you’re doing the best for your situation.

Set a weekly budget and carry cash

Something that has really helped me personally in the past has been to set a weekly budget after rent and bills, just for food, travel and socializing, and getting the cash out in advance to make sure I didn’t go over. This is a really effective way to rein in spending and understand where money goes. You start to think more about whether you really need certain things and for me especially, it helped to cull daily extravagances like buying lunch out every day rather than taking my own to work, which really adds up over the course of a few months or a year.

Carry change

This is a simple one: try to carry a small amount of change with you at all times so you never end up breaking into notes just to get coins.

Take advantage of offers and coupons

Think how often you find yourself getting a coupon from a store you visit regularly. All too often, this ends up forgotten in the bottom of your purse or wallet, or thrown in the bin. It takes a bit of effort to make sure coupons are used, but if you get organised and make sure you do put them to work, you’ll be surprised just how much you can save on a weekly shop.

Get to grips with shopping psychology – when is a deal not a deal?

Likewise, always shop for deals. This is one that we all probably do when we’re in the supermarket and it usually turns out well. However, one thing it does always pay to be aware of is that supermarket deals are not always all they’re cracked up to be. ‘Money off’ deals can sometimes be misleading, and although authorities have made moves to clamp down on this in recent times, unfortunately, it doesn’t stop it from happening.

Some tricks include:

Crafty comparisons – where items are offered as better value because they’re sold in a bigger pack or suggesting that a product has been reduced when it’s actually sold in a smaller portion size.
Yo-yo pricing – where products are sold at an inflated price for a short period before being put ‘on offer’. The discount price period lasts longer than that initial higher price, making that the normal selling price so that there was never any deal at all.
Bulk buying – sometimes, buying in bulk is not more economical. Shoppers can end up paying more if they stock up on ‘Buy One Get One Half Price’ or ‘25% off’ deals rather than just purchasing a larger pack.

To make sure you’re not being ripped off, it’s advisable to shop by unit price. In most supermarkets, food will be clearly priced by weight or volume underneath the pack price, to compare products and identify the best deals.

Open a ‘deals’ account

Once you’ve successfully navigated the ‘deals’ minefield, take a few minutes to work out how much you’ve saved per shop and put the difference in a separate account or jar. Even if it’s only a small amount every week, it all adds up over time and could be used to help fund annual costs like Christmas and birthdays.

Start a change bank

Every time you find yourself with a lot of loose change weighing you down, take it out of your wallet and keep it in a jar. In your wallet, loose change is all too tempting to spend on bits of things you don’t really want or need like sweets and chocolate. Though it’s not much, if you keep topping up the jar with little and often you might find that it pays for a night out or some new clothes.

Lock money away in a fixed rate account

Fixed rate savings accounts tie your money up with no access, so it’s easy to pretend it doesn’t exist. The fixed rate accounts that will glean the greatest return require you to make one lump sum deposit, which is then tied up for the term of the account agreement so there’s no dipping in.

Or failing that, a notice account

Some savers prefer the flexibility of a notice account, which may still require an initial lump-sum deposit, but allows further deposits to be made throughout the term of the account. This in mind, you could set up a direct debit from your current account to a notice account for when your wage goes in, so you never really have the money at your disposal. With a notice account, you can only make limited withdrawals following a notice period, so although there’s less temptation to withdraw, you still retain the security of having access to your cash if you need it.

Use your workplace pension or 401(k) plan

At the very least, you should be investing money into your company pension scheme. This is probably the easiest and most lucrative way of ensuring funds are available in the future as it essentially acts as a pay rise. When you make monthly contributions, your employer will also make relative contributions on your behalf. Plus, it’s taken straight from your wage, so you never get an opportunity to miss it.

There’s an app for that

Sometimes just keeping a log of spending behavior can be a really effective wake-up call for identifying bad habits and realizing where saving opportunities are being missed. best of all, there are apps that help you save money as well as apps that help you earn money.

Swap out expensive habits

Everybody has certain weaknesses when it comes to spending money, and quite often these go under the radar. Try to identify where money’s going on a daily basis (the above apps are a great tool for this), and think about where you could make slight changes. Here are a couple to start you off: Replace buying lunch every day at work with making sandwiches at home, Replace a coffee and a muffin en route to work with a hand-made cup and cereal bar when you get into the office, or; Replace dinner out with friends with a homemade meal at one of your houses. Each of these quick fixes can be arranged at a fraction of the cost.

Pay yourself after you’ve paid off a debt

Paying off a debt is wonderfully liberating. But after a month or two you’ll barely notice the difference once you’ve adapted to your new spending limits. Although it’s tempting, try not to let yourself get carried away with the extra money at your disposal. Instead, arrange a direct debit straight into a savings account. That way, you’ll never miss the extra because you never had it to begin with.

Keep a record of every credit card transaction so there are no surprises

Simple: when you spend on your credit card, write it down. There’s nothing more unsettling than an unexpected credit card bill because you forgot you bought something, and it’s this kind of thing that can quickly lead to debt.

Get rid of unused direct debits

If you haven’t been to the gym for the past six months, it’s time to get rid of that membership. Likewise, check you’re getting the most out of your phone contract, TV subscription, and internet package…basically anything you’re paying for on a monthly basis. Most of us are involved in some sort of package deal that could be reduced but don’t bother to investigate the options.

Sell, sell, sell

Everybody likes to add a few new items to their wardrobe when the season changes. Don’t just leave last year’s unwanted clothes gathering dust in the back of your wardrobe. Instead, put them on an auction site like eBay, where there are millions of potential buyers all looking to put together a new wardrobe of their own. And it’s not just clothes. Every so often have a good clear out; you’ll be amazed how much stuff you accrue that’s just lying around. Be brutal – if you’re not going to use it, get rid.

Don’t live paycheck to paycheck

A lot of people assume that they need to live according to their means. Of course it’s wise to live within means – but that doesn’t mean that the full amount needs to go every month. Decide how much is reasonable to live off and stick to it. Yes it’s nice to have treats from time to time but getting too used to them on a regular basis is no good for your nest egg.

Stop equating money with happiness

Money is a means to an end, but quite often people associate having money with success, affluence, and ultimately being happy. If you can change the way you think about money and material objects, you’ll feel less inclined to spend too easily.

Assess lifestyle choices

Sometimes, it just makes sense to do certain things that you might not want to. Living with your parents, for example, is one such scenario that, though not ideal, will help you save and ultimately help you get your foot on the property ladder quicker.

Freeze your credit card

Ok, potentially a little extreme. But it’s effective.

If you have trouble controlling spending habits, try placing your credit card in a glass or tub of water and freezing it solid. That way, next time you have the urge to spend you’ll have to wait for the block of ice to melt. The idea is that by the time it’s thawed you compulsion to spend will have passed. And don’t try cheating – attempting to free the card in the microwave will just damage it.

Kill crazy purchase ideas with a ‘lust list’

Basically, write down everything you find yourself with an insatiable desire to buy in a notepad. Keep this notepad with you and update it every time something else comes up. You’ll be amazed how often you find yourself questioning the things that feature on there and it might just help you to think twice before going in for that must-have designer handbag next time. Building savings is one of the hardest things to achieve, but it’s becoming more and more imperative to do so. With the above 24 ways to save, there’s something everyone can do to beat procrastination and get some cash stashed away for the future.

(Photo courtesy of Felix Montino)

This article was contributed by Jennifer Bowden, a specialist finance writer and blogger. Jennifer currently covers a range of personal finance topics on behalf of Aldermore, a leading independent bank.

10 Reasons to Find a Money Mentor

September 9, 2013 By Danielle Warchol 5 Comments

Financial education tends to be done through books, online or through some type of course. While these can be valuable tools to get your finances in order, one of the best resources is often not even considered — finding a money mentor. If you know someone who is good with their money and you feel might be open to teaching you what they have learned, you might want to consider asking if they would be willing to be your mentor. While talking about money is still taboo in many ways in our society, most people who are financially responsible are more than happy to help out those who are looking to get their finances in order. Even Steve Jobs thinks it’s good to do. Below are a number of reasons you should seriously consider finding yourself a financial mentor.

They Provide Honesty About Your Financial Situation

A money mentor can provide honestly about your financial situation that you would not find elsewhere. Sometimes your friends and family members won’t be willing to tell you that you’re making the wrong decisions because they’re too hesitant or wary to tell you that you’re doing something wrong. If you do get a mentor, it’s probably a good idea to find someone who isn’t a friend or a family member so they can provide you with honest advice about your financial decisions.

They Can Share Their Experience

A money mentor is someone who understands the ins-and-outs of finance due to personal or professional experience. Someone who has been in the same situation as you can share experience that will help you better understand your options or financial decisions. Sometimes learning from someone else’s experiences can you help with your own experiences.

Peace of Mind

Additionally, sometimes having a financial mentor can provide you with peace of mind. Knowing that you have someone who understands your money situation and is able to provide you with rational and reasonable advice and solutions can help you sleep easier at night.

Stability and Security

Mentors are also great for providing you with the tools you need to achieve stability and security. For one thing, they can be a great sounding board to help you figure a way out of your financial problems. They may also offer valuable help and advice as you determine the best budget or plan to keep your finances on a steady path.

Someone To Point Out Flaws in Your Plan

Do you think your financial plan is solid? Or maybe you have a plan to get out of debt that you think is flawless. Or perhaps you believe that your plan to save money is perfect and unbeatable. A moneyl mentor can help point out flaws in your plan, especially if they’re looking at your financial decisions with an objective and experienced eye.

You Don’t Understand Financial Terms and Issues

Of course, getting a financial mentor is a must if you often find yourself confused by financial terms or strategies. The world of finances can sometimes become confusing and complex, so it’s a great idea to have someone in your court who understands the terminology. Sometimes it’s nice to have someone who can help you better understand the terminology and strategies so you don’t become overwhelmed.

Poor Money Management Habits

A money mentor can also help you conquer your poor money management habits. Having poor money management skills can have a drastic impact on your life, especially if you’re trying to save money or get out of debt. A mentor can help you figure out the best ways to stop poorly managing your money. Maybe they have tricks or skills that you haven’t thought of or haven’t used before. In the end it’s going to be up to you to follow through and change these habits, but having someone in your corner to help you see them and provide ways to change them can be a huge asset when getting your finances in order.

Objective Advice

In addition to providing honest advice and a sense of security, a financial mentor can a great person to provide objective advice. Sometimes friends and family members don’t provide you with objective advice because they want their personal input to factor into your decisions. A mentor who doesn’t know your personal life can provide you with advice that won’t conflict with the advice from your friends and family.

Define and Reach Your Goals

A mentor can also help you define and plan for any goals you may want to reach. Do you want to get out of debt? Maybe you want to figure out how to save for college or want to put a down payment on a house. An experienced money mentor will be able to guide you down the right path and help you determine what financial decisions you should be concentrating on.

Learn About Your Finances

Most importantly, finding a mentor can help you learn a lot about your financial status and spending habits. Sitting down with a financial mentor for the first time can open up a window into the world of your finances. They may help you realize the poor spending habits you have or the best areas to decrease spending. Sometimes the best way to learn about our individual finances is having someone else point out our habits. A financial mentor is a great person to have in your network for many of the reasons listed above, but most importantly, your mentor is someone who can provide you with honest, objective, and experienced advice.

(Photo courtesy of peasap)

Let Your Kids Suffer. They’ll Be Better Off.

August 5, 2013 By Jennifer Derrick 22 Comments

When I left home to go to college (many years ago), my parents made it very clear that I was on my own. While they would help with expenses as long as I was in school, those expenses were going to be . I would live in the dorm, eat cafeteria food, and rely on public transportation and my own two feet to get around. They didn’t pay for me to live in a nice apartment, have a car, go to the movies, or eat out every night.

When I graduated and got my first job, all financial assistance stopped. My parents let me suffer. I lived in a crappy apartment, trekked to the laundromat, and ate whatever cheap food I could afford. I sat in folding chairs for the better part of a year and didn’t have cable. I lived as low to the ground as I could and banked whatever extra money I could wring out of my budget.

Fast forward a few years and a couple of promotions later and I was able to upgrade my lifestyle a bit. I actually bought some furniture and moved to a nicer place. But I still didn’t have all that much. I just didn’t need much to be happy because even the small gains I’d made seemed huge when compared to where I’d started.

Now, many years later, I’m much better off than I was in those days but I still don’t have half of the things that many of my peers do. And I don’t want or need them. But I do have a healthy bank and retirement account. Why is this? I’d like to think that it’s just my brilliant common sense, but I know better. Looking back I know it’s because I never had high expectations from the beginning. I never felt like I had to keep up a certain lifestyle, or that I was entitled to anything. I started in folding chairs. Anything above that is gravy.

Too many people coming out of school today have no idea what it feels like to be uncomfortable. Their parents put them up in nice apartments, paid for the cars, and gave the kids a “lifestyle.” Either that or the kids fell for the credit card spiels and financed their way into a lifestyle. However it happens, these kids aren’t capable of living low to the ground while they build a solid financial foundation. They have to have cool apartments, furniture, and cars. Hand me downs and beaters just won’t do. They aren’t used to being uncomfortable and they sure don’t want to start now.

This can come back to bite them later. What happens when mom and dad pass on, or get into financial trouble themselves and can no longer help out? The kids have no money management skills to fall back on and they have no idea how to live on a small budget. They’re so used to having everything that the idea of being uncomfortable and sacrificing is abhorrent. So they turn to credit cards and loans to keep the lifestyle, putting themselves even further behind.

But if you allow kids to suffer a bit when they’re getting started, they’re likely to be better off in the long term. When they have to fight and save for every luxury, they’re less likely to feel entitled to the biggest and the best. They learn very quickly the difference between wants and needs. They learn how to manage their money. When parents are constantly propping up their kids, the kids have no incentive to figure things out for themselves. It’s easier to just call mom and ask for money. But when you are really on your own, you have no choice but to learn how to manage money.

And later on, if things get rocky, that kid can remember back to their poorer days and know that they made it once and they can make it again. They understand that living cheap isn’t the end of the world. They know that luxuries are just that and it’s easier to forego them until things get better. When you’ve never done without, it’s very hard to give things up, even when you know you need to.

Keeping your expectations low also makes you more grateful for what you do have. Sure, I don’t have as much as some people, but compared to those early days I have a lot. And I’m happy to have every bit of it. While I know that I can live without many of my little luxuries, I am appreciative of them every day. For example, I can live without my own washer and dryer but when I remember the days of trekking to the laundromat, I want to go hug my appliances. They’re not top of the line and they seem like such a small thing in the grand scheme of life, but I appreciate them because I know what it’s like to do without them. It’s the same with everything from my car to my furniture. None of it is top of the line, but it’s much better than what I had when I started, so it all seems wonderful to me.

You don’t do your kids any favors if you never let them suffer. Giving them everything only teaches them that they don’t have to do without. If the day comes when they have to do without, they’re confused and unable to deal with it responsibly. If they’ve suffered a bit and have kept their expectations low, however, they’re more likely to better manage their money and to deal with financial setbacks. That makes for a much healthier and independent adult.

Finally, if you are interested in learning more about parenting in general, consider getting a copy of Dr. Spock’s child rearing Baby and Child Care: 9th Edition. The book is an outstanding work which has been read by generations of American parents. The ninth edition is updated and revised for modern health conditions and social norms – definitely buy a copy if you get a chance.

(Photo courtesy of Daniel Oines)

10 Steps to Better Finances in Ten Minutes

July 19, 2012 By Danielle Warchol 3 Comments

One of the things that keeps a lot of people from beginning to get their finances in order is the fear that it’s going to take a lot of time and effort to do so. While it’s certainly true that certain aspects can be time consuming, there are a lot of little steps that anyone can take to help improve finances that take less than ten minutes to accomplish. Here are ten things most can do in just a few minutes that will help get them started on better finances:

Set a Date to Pay Bills

A lot of people have trouble keeping their finances in order and this sometimes leads to financial problems down the road. One of the best ways to improve your finances is to keep everything in order and make smart, timely decisions. Setting a date to pay all your monthly bills is a great way to control your finances. If you know that all your bills are due around the same time of the month, pick a date and sit down to pay them all. If you can’t pay them all at one time, outline a schedule so you know exactly what days you can and will pay them. Sticking to a schedule will help you avoid late fees or missed payments.

Make a List of All Accounts

Make two lists of all your financial accounts. One list should be all bank accounts, investment accounts, retirement accounts, and other financial accounts. List the account number and any important account information. After doing so, make sure this is locked away somewhere safe, such as a locked or password protected safe box. Second, make a list of all credit card accounts, utility accounts, and other monthly expenditures. Take down the account number, the due date of the bill, the grace period, minimum balance requirements, and any remaining important information. These two lists will help you keep track of all accounts and if you ever lose any information, you’ll have everything listed in a safe place.

Opt Out of Pre-Approved Credit Cards

While there are some types of junk mail that pays, that isn’t the case for a lot of it. Almost everyone who has a credit score received pre-approved credit card offers in the mail. They’re annoying and for some people, tempting. They usually come with supposedly great signing bonuses to get you interested, but almost always make their money back in other ways. One of the best things you can do is to opt-out. Visit Opt Out Prescreen to opt-out of credit card and insurance offers and visit DMA Choice to opt-out of junk mail.

Track Your Weekly Spending

Some people forget to track their weekly spending and by the end of the month (or a couple of months), they spend hours trying to figure out where they spent their money. Scheduling a time each week to go over your expenses for a few minutes is a great way to improve your financial outlook. You’ll have a better sense of how money you’re spending and how to improve spending habits. There are also plenty of sites online that you can link to your bank account to track your spending habits such as Mint.

Set Up Automatic Transfers to a Savings Account

Many people complain that they can’t save money because they don’t have money to save. But a lot of those people spend money on frivolous things, and that’s money that could have been put into a savings account. Set up a transfer from your paycheck or checking account to your savings account on a weekly, biweekly, or monthly basis. The amount can vary depending on what you can afford. Setting this up will take barely any time and before you know it, you’ll have money you thought you couldn’t save in your savings.

Freeze Your Credit

If you had a bad financial history, freezing your credit with the three credit bureaus might be the right step to take. Whether you’re freezing your credit history so you’re unable to open new accounts or freezing current credit, this is a quick step that will help set you on the right financial path.

Keep a Change Jar

There are a couple of ways you can do this. You can set aside some time to clean out all spare change from your wallet each week or simply have a jar by the door that you can empty any change in your pockets into as you walk in the door. Or, if you want to go bigger, you can decide to take all $1 or $5 bills out of your wallet instead of coins. Whether it’s dollar bills or change, money adds up quickly. It’ll be a nice stash of money saved away for a rainy day.

Remove Yourself from Mailing Lists

Many of us receive “daily deal” emails from deal sites or stores. Sometimes an email that has SALE in big, flashing letters is hard to resist. Removing yourself from store or website mailing lists will limit the chances of you spending money you don’t have. Not seeing a daily email about a new sale or new great deal is a great way to start improving your financial outlook. Avoid temptation and make your email only for personal or business correspondence.

Set a Monthly Savings Goal

If you’re really intent on saving money, set a monthly goal. It’ll take you barely 10 minutes to figure out how much you want to save and figure out how much you can contribute each day or each week. Once you have a goal to work toward and plan in place, you shouldn’t have any problem reaching that number!

Take an Inventory

A lot of us are guilty of buying things we think we need, when in reality, we already own or it or don’t need it. Spending a little bit of time making an inventory of items you already own or a list of items you definitely do need will help you keep focus. This way you can be financial smart an avoid buying duplicates or items that you don’t actually need.

(Photo courtesy of GabrielaP93)