Payday was just around the corner, and that money may be heavy in your pocket and on your mind. Hopefully, some of the money was spent on bills and groceries, and you have a little left for yourself. While we all make money, we do not all spend it wisely. Have you heard the saying, “it’s not what you make but how much you keep?” If you are looking to put your money to work for you or just wanting to save more, pay more towards debt, or have a little extra cash to spend on yourself, here are some old money habits you should change now!
Stop relying on yourself to pay the bills on time! Instead of wasting time remembering what bill is due on payday or skipping payments because you need more in your pocket this month, automate it. When you automate your bills, you ensure you are never late, never pay interest, and it always comes out of your check before you have a chance to miss it. I promise you won’t miss the money paying on time and you will have peace of mind.
Don’t Spend All Your Money
Sure, money is made to be spent. We all have things we need and want, but that does not mean be frivolous with your check. Think about your future self and savings! If you do not want to work until you die or always live paycheck to paycheck, you must start saving. I’m not talking about saving half your check or more. I’m saying save what you can, even if it’s $5 a week. Automate these savings into savings or investment accounts. There are even some investment accounts that link to your bank account and round up the change for your linked purchases before depositing them in your investment account. I doubt you will miss a quarter or even a dollar a day!
All Saving Accounts Are Not Equal
If you are going to save money, please ditch the old-school savings account with your bank. They are making all the money off lending out yours and paying you literal pennies to do so. Instead, put your savings into a high-yield account. While yields have been stifled by the pandemic, there are still savings accounts with great rates. I have most of my funds in a Marcus account but recently found Blue Federal Credit Union. I’m funneling 1k into their accelerated savings account at a 5% yield and the remaining portion, up to the max amount in the Christmas club account. That account yields 1.2 %. If you want similar rates right now, check out NetSpend, Digital Federal Credit Union, T-mobile Money, and Porte.
Breaking old money habits is not hard. Just keep a positive mindset and a can-do attitude, and you will succeed. For more good money habits, check out the posted video.