During these difficult times, every little action we take in cutting down expenses or prepare for the future counts. Here are 7 tips that proved useful for me.
1. Pay yourself first. As women, we take care of everyone else's needs before our own. When it comes to our finances, it is no exception. Make a commitment to pay yourself before you pay your other creditors. Don't wait for the end of the month to save because you will not have any money left at that time. The more money we have available, the more we spend.
2. Set up direct deposit and have 10% of your income go to a separate account, preferably one you do not have easy access to. I opened a savings account at another bank and have the 10% of my net pay go into that account. The reason I did that was so I wouldn't see how much was in there every time I logged into my account to pay my bills. The money is there safe and sound. You may think: "I am already struggling keeping up with all my expenses at this time, I need every penny I get. "You do not have to start off with saving 10%. Start with 2% and increase by increment of 1% as you go. You will not notice the difference. You will adjust your expenses without even realizing it.
3. Know where your money goes. It is easy to lose track of where we spend our money on little purchases. The starbucks coffee or Pinkberry yogurt don't seem like much but when you add up all the little bills at the end of the month, they amount to quite a bit. Do you know how much you can save by just replacing one Starbucks coffee a week with one you make at home? Go for a richer, higher quality bean. You can indulge and save at the same time.
4. Don't underestimate the benefit of non-monetary rewards. It's important for us women to take care of ourselves. There are many things we can do that does not cost a penny: a nice walk, a warm bath, a relaxing afternoon doing nothing, reading a good book, etc. Reward yourself for a job well-done. You deserve it.
5. Avoid using other bank's ATM. In addition to the ATM fee, your bank may also charge you a fee for using an ATM outside its network. That can easily add up to $5 for just one transaction. Go through your bank statements and see how much money you spend in ATM fees. That money need to stay in your pocket. You earned it.
6. Pay off higher interest credit balances first. After you pay all the minimum payments, tackle the higher interests card. Negotiate with your banks and see if they could lower your rates. Keep calling and ask for the supervisors. They are the ones who can make that kind of decisions.
7. After your balance is paid off, cut out your credit card but don't close it unless you are paying an annual fee. Closing your account will lower your FICO score as you will have less available credit to your existing debt.
