Financial Matters: Money Management

PORTSMOUTH, Va. (WAVY) - BayPort Credit Union's financial counselor stopped by with tips on how changes you make now, can have you sitting pretty by this time next year.

Money Management

A. Let's start with the holidays. Most people want more money to spend during this season. Studies show that we spend 30% more when we use credit instead of cash. To avoid a financial hangover in January with debt why not consider having the cash to spend for the holidays next year. Consider opening a Christmas Club account and have a set amount automatically deposited every pay day. At the end of September you will have the cash to pay for those expenses. With $50.00 a month you will have $600.00 (plus interest) to get started. How much less stress would you experience if you have the cash to pay for your holiday expenses?

B. Use the same principle of automatic disciplines to put your finances on auto-pilot. By purposely planning automated actions it becomes a "no-brainer" to implement action plans to improve your finances and reach your goals. This forces us to develop good sound financial habits.

C. Consider implementing the following:
I. Set up an automatic deduction every pay period to build your emergency fund.
II. Sign up for low-balance alert with your financial institution to let you know via text or email when your checking account falls below a certain amount.
III. Enroll in overdraft protection where money is automatically transferred should you make a mistake and overdraw your account.
IV. Make sure that you are enrolled in the 401k plan at work where your contributions are automatically deducted from your pay. Some employers will automatically enroll new employees in the plan by default to encourage saving for retirement.
V. In January order your free credit report from the three credit reporting agencies by clicking here or call 1-877-322-8228.

For more money management solutions, stop by any of the 14 BayPort Credit Union locations across Hampton Roads or click here to visit BayPort's website.