With the holiday season—and inevitably tons of shopping—just around the corner, a few spending and saving reminders are definitely fitting. Below are some dos and don’ts when it comes to managing your personal finances!
Do:
- Check your credit report at least once a year. By law, you are entitled to a free credit report from each of the primary credit bureaus—Experian, TransUnion and Equifax—every 12 months. It’s important to review all three to confirm that the information regarding your accounts is accurate. If you find erroneous information, you can file a dispute claim. Go to Annual Credit Report to check your reports today!
- Create an emergency fund. It’s important to build a savings account in case of any unexpected events or crises. If possible, keep at least 8 to 12 months’ worth of living expenses saved. Many employers offer direct deposit to multiple accounts, so it may be convenient to automatically deposit a portion of each paycheck into your savings.
- Keep your credit card balances low. Or, even better, pay off credit balances in full each month to avoid interest fees. A high balance, even on a single account, can negatively affect your credit score.
Don’t:
- Open up a retail credit card at every store you shop at. It can be tempting when the cashier offers 15% off your purchase “just” by applying for a store credit card, but be mindful: These offers are often associated with sky-high interest rates upward of 20%. And opening a store card merely for the discount only to cancel it soon afterward will hurt your credit score. However, if you’re seriously interested in a retail card, make sure to read the fine print before signing on the dotted line.
- Rack up ATM fees. Be careful of taking out cash at ATMs outside of your bank(s) too frequently. Although ATM fees (generally between $2–$5) are minimal, they do add up! Instead, use the ATMs at banks where you have an account(s). Some banks will even reimburse account holders for ATM fees; check to see if your bank offers this amenity.
Additional Resources:
- SuzeOrman.com – Personal finance expert, author, and TV host Suze Orman has a robust website covering the full gamut of personal finance topics and toolkits including managing debt, retirement planning, investing, identity theft, and refinancing to name a few.
- LearnVest.com – Learn Vest CEO Alexa Von Tobel has created a unique and dynamic website that allows users to take control of their money by creating a personalized financial plan with the help of a dedicated financial expert.