How to remain financially flexible while banking

Close up of Calculator keypad

Close up of Calculator keypad

Maintain your financial flexibility by avoiding being stuck with one bank. Here are some helpful tips.

  1. Split your direct deposit

You can request your employer for two accounts where your direct deposit will be split. Should you decide to close one account you can easily route the funds to an existing account from another bank. It will be more convenient than opening up a new one after closing an account. You just have to take note of a bank’s required minimum balance to waive fees, because keeping two accounts might make it difficult for you to meet their requirement.

 

  1. Avoid recurring payments

Although paying bills manually take longer than setting up recurring payment information. But it will be worth the financial freedom because failure to update an account might delay your payment. And if you forget your payment information you have to contact each company with your new account information, which is time consuming.

  1. Scatter your accounts

You don’t have to put all your money in one bank you can deposit them in different banks and use an app to track them. If you have a financial advisor, inquire if he/she uses software that can aggregate all your accounts. This makes it easy for you to monitor your accounts without being stuck.

  1. Skip overdraft protection

Learn to track your transactions so you won’t overspend and feel the need of an overdraft protection. This offer may seem convenient at the onset but will only delay you should you want to close your account with the bank. Diligently, monitor your spending through online banking and keep a buffer of cash in your account so it won’t go negative.

There are a lot of sticky products which you should look out for so you will remain financially flexible when you’re banking.

 

 

Read more

Your Ultimate Financial Management Tool

Budgeting Money tools budgeting

A Boy Scout uses a set of drawings to build a bird house. If he didn’t the roof might not be the right size.

Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.

Not very smart of us, is it?

A money plan is called a budget and it is crucial to get us to our desired financial goals.

Without a plan we will drift without direction and end up marooned on a distant financial reef.

If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are…long term and short term.

Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.

A budget should never be a financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.

Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in “free budget forms”.

You’ll get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it’s something you can stick to.

If you don’t remember anything else from this post, remember this one thing: A budget is not a “you can’t have that” tool, it is a “you CAN have that if you budgeted for it” tool. Just think ahead a little, and you will put yourself in great financial shape in no time!

Read more
Wordpress SEO Plugin by SEOPressor