There are plenty of financial tips you can implement into your day-to-day lives and these eight financial tips are worth implementing.
- Every month pay off your credit cards. Avoid carrying a balance on these expensive products. Treat them like poison.
- Install Quicken on your computer, or some other income and expense tracking software. Mint.com is another option. All of these programs tell you when your bills are coming up and will help you analyze your spending behavior.
- Make an aggressive plan to pay down your credit card debt if you went on a spending spree or you were forced to rely on debt to make it through a rough month. Just start to knock your balances off one at a time, beginning with the card that has the highest interest. Paying the minimum is much like running on a hamster wheel, you’ll never get off. When you methodically attack each one, it won’t be long before you find your way to a zero balance.
- Maximize your contributions to your 457(b), 401(k), or 403(b) retirement accounts. The max for this year is $17,500, but if you are over 50 you can put another $5,500 into the account. These accounts will save you money on taxes for the current year and many employers will match your contributions, so make sure to take advantage of these as much as you can.
- Pack yourself a lunch. It is far healthier and a lot cheaper than takeout food.
- To save gas, if possible, walk to the market, which will also provides you with incentive to stick to your list and not make any unnecessary purchases.
- You should never borrow from your 401(k). The early withdrawal fees cancel out the reason for saving to begin with. A line of credit or bank loan is a better option if you find yourself in a pinch.
- Your savings should be on autopilot. Do this by automatically channeling a portion of each paycheck to your savings account.