Too Much Month At The End Of Your Money?

It just seems part of normal life now that many of us find ourselves in a financial bind from time to time. The following are just some quick ideas that I have found to be helpful in managing a less than comfortable income. I am not an expert on finances, except for my own, but hopefully you will find some ideas that will help.

Be prepared to make some changes (some are very easy to do) and look for opportunities unique to your own personal situation where you can improve and help stabilize your financial situation. It’s always a good time to start because costs are always going up.

It is good to have a credit card or two that can be used to help smooth over some of the rougher financial bumps we encounter. (More than two general expense cards can be too much to handle, especially if you cannot pay the entire balances due each month and carry balances that incur high interest charges.)

Taking control of your income and planning ahead for the whole year's expenses, broken down month by month, together with a tight rein on your cash (or an extra job if necessary) are ways to help stabilize your finances.

Prepare a list of all your necessary expenditures and the dates due. Don't forget to add yourself as a required expenditure (i.e., your savings account). Schedule payment dates right after you receive your income. I have found that some companies will permit you to change your payment dates somewhat if you call and ask. It is a big help in that finances are more easily managed in harmony with pay periods.

List what you normally spend (per each pay period) as daily or weekly (food, gasoline, meals out, discretionary spending, etc.) and take a good look to see what can be budgeted more carefully to stay within your income, and what changes can be made to what you normally do to lessen the cash outlays.

Simple things like purchasing your own munchies or soda by the carton (when you food shop) and taking them to work can save a couple dollars a day or more if you drink just two sodas and buy goodies from a machine or local convenience store. Pay for your gasoline by cash when possible. You should know the amount of the extra monetary hold on your account (when you pay by credit card) before you use the pump (the gasoline charge is separate, and the gas station wants to be sure they get their money, so there is often an extra hold on your funds). This would be especially important when traveling with the need to refuel multiple times. (Banking online is a great way to check on this, especially if the attendant cannot provide a correct answer.)

Search out a financial institution with the lowest fees for checking accounts (or no fees, if you can find it). Sign up for direct deposit if your employer offers it, that is a great timesaver. Create two checking accounts and a savings account (or other liquid money account if you can qualify) all at the same institution and manage these online.

Designate and use only one checking account from which to pay bills through your financial institution. (Paying online is a good way to save on expensive postage and gasoline costs; it can help save your sanity as well and is much faster than handwriting a check and addressing an envelope once you get the basics set up.)

Fund this checking account for bills each pay period for scheduled expenses. You might still want a checking account and a debit/credit card for those places where you need to set up an account at company websites that do not take credit cards, but let you pay by check (electronic debit). Note that most of these transactions are often very, very quick and can appear in your account the same day or next.

You will also need checks for this account to pay certain things, such as various taxes, as that is the only way acceptable for some taxing bodies, especially if you stop by in person to pay a bill, i.e., local wage taxes. Some financial institutions will also tell you not to pay any taxing body online or will not let you do this.

For company websites that you access directly that do let you pay by credit card, you will need the debit/credit card for the account numbers and your special three-digit number on the back where you signed your name on your card. If you have waited too long to send payment online via your financial institution, you will need it.

If you have bills that you pay quarterly, semi-annually, or annually, pro-rate those per month and add them into this account. That way, your monthly expenses are closer to the same each month without great fluctuations that would otherwise send you scrambling. Keep a ledger so you know what your balance in the account is expected to cover and never borrow from this account for discretionary spending.

The checking account that holds your normal daily expenditures (and you should plan those according to your income and needs) will need to have checks available for use when necessary, and a debit/credit card. The advantage of a debit/credit card is that it can be used at an ATM machine as well as used as a credit card when you are purchasing items and won’t need to input your personal identification numbers in front of many strangers.

Keep a small amount of cash on hand each pay period to use for small purchases (and gasoline too if you find your local stations have large holds against your account). The savings account acts as a safety net if unexpected expenses occur (and you can get by without using your general purpose credit cards) as well as a good way to get started saving for your future. Get a separate savings account when you want to save for big-ticket items so you have cash available to pay for them.

If you find you want or need extra work, I have quite a few articles where you can begin your search. If you don’t see something that interests you here, check the other monthly archives on the left side, there are more articles there to help you start. Check back here as well, there will be more articles regarding working from home for more occupations in the future. Legitimate opportunities are out there, but so are scams, so always investigate any opportunity thoroughly.