Make This Your Financial Habits!

1. Automate payments

Rather than expending energy chasing your bills and figuring out how you are going to save a few extra dollars each month, let automation help you out. Your paycheck should be directly deposited to your account to avoid wasteful bank trips or the urge to cash your check and walk out with a big wad of spendable greenbacks. For savings, set up an automatic recurring direct stock purchase plan where funds are automatically deducted from your checking account each month. If you prefer savings accounts to stocks, have a portion of your paycheck directly deposited into a high-yield savings account each payroll period; most employers will let you split your paycheck among different accounts of your choosing.

2.Know your banking center locations

Rather than just hitting up any old ATM when you need cash, adopt healthy financial habits by making one or two scheduled stops a week at a conveniently located bank branch. If you stick to your plan, you should be able to avoid those rogue cash withdrawals you might experience at the bar on a Saturday night. This will help you stick to a budget and if you go to your bank, you will save on those costly ATM fees.

3.Carry one credit card

With the swarm of credit card solicitations you have, it is no wonder you likely have and use more than one credit card. Besides, they are all useful in some form or another as each gives you reward points from Starbucks to Dillard’s, as long as you use their credit card. Cutting up all but one card to carry with you reduces the temptation of overspending and is a healthy financial habit. Furthermore, in the event you are trying to get your finances together, it is far easier to manage one account rather than several, and you can commit more of your cash to paying off one balance rather than spreading it around. Find one credit card that has practical rewards, such as gas rebates, cash back or travel points (rather than free coffee). When you get your credit card statement, immediately pay off the balance in full, but schedule an automatic payment a couple of days before the due date to maximize cash flow and maybe even earn some interest while the payment is waiting to hit your account.

4.Reconcile your accounts

A lot of people do not reconcile their checking and credit card accounts. Reconciling makes for a healthy financial habit, and by doing so, you will be forced to watch your finances more closely. Often, getting your act together financially simply means paying attention to it; reconciling your account is a rudimentary exercise that makes you look at what you spend to make sure it matches up. Additionally, reconciling can help you identify bank fees and other charges you are not expecting that seem to contribute to your dwindling account balance. Even if you do not find any gaping holes in your spending patterns, the commitment of simply reconciling your accounts each month when the statements come in will put things in perspective.

5.Visit your bank

With online banking available, it is no wonder you never visit your bank branch. Once a month, rather than hitting the ATM, go to the teller to make a withdrawal. This will benefit you because getting some face time in at the branch will ensure that the staff and branch managers will start to recognize you. Nothing is guaranteed, but when you visit the branch and speak with a teller, you may be introduced to a better checking account option with lower or no fees or a savings account that pays a higher interest rate. Furthermore, with a personal relationship established, you are likelier to have success in disputing bank charges and getting preferential treatment, such as no-fee money orders.

6.Watch your credit report

The credit score used to be an invisible number that you couldn’t look at. Things have changed thanks to online services offered by companies like Equifax. These services charge a fee, but you can view your credit report and credit score. In some cases, you can access that information for free when you sign up for a credit-monitoring service and some credit cards. It is nearly impossible to have a perfect credit score, but understanding your score is instrumental in understanding why you did not qualify for the lowest interest rate or why you were declined for financing a new car. Seeing your credit score and recognizing how making payments on time can impact your score aids in putting your financial situation in perspective

7. Use software

The above tasks can be simplified and yield better results when you use a wide variety of software to help you budget, track expenses, reconcile, and plan. Readily available software programs, like Quicken, provide a complete financial management and tracking tool. Most banks and credit cards also let you download transactions to eliminate tedious data-entry and math mistakes. Web-based programs, like Mint.com, do the above as well as introduce you to better deals on savings accounts and credit cards, and tell you exactly how much more you will make or save by taking a new route.