TO P 10 TIPS FOR MANAGING YOUR FIN A NCES

culled from:patreasury.gov

1.

Track your

monthly spending

.

Many people do not know how much they spend each month on food

, clothing,

housing,

or

entertainment. Whether you are paying with cash, a debit card or

credit card,

t

otal

your expenditures at the end the

month to

gain

a better picture

of how you

’re

spending your

income

.

2.

Develop a household budget you can follow.

U

sin

g the data you’ve compiled by tracking yo

ur monthly expenses, d

evelop a

realistic budget

so that it’s easier

live with

. T

rack how well you

follow

it each

month

–

that mean

s

continuing to track your monthly

expenses

.

3.

Be sure to budget

for

savings

.

Your sav

ings are a Rainy Day Fund, which

is

important when unforeseen

expenses or emergencies arise.

Be sure to budget

part

of your monthly

paycheck

for deposit into a savings account

–

ideally at least 10%

of each check.

If you find

or

earn

extra money

–

put that

away in a savings account, too!

4.

Pay your monthly bills on time and avoid late charges.

Take inventory of your regular monthly bills and make reminders for yourself on

when each bill is due. That way you can avoid costly late fees

, which can also

damage y

our credit score. The best approach is to pa

y bills as soon as they

arrive.

5.

Review your credit report.

The details of your credit report can have an enormous impact on your financial

future. Obtain a free report once a year at

www.annualcreditreport.com

, and

check it for accuracy. Be sure to dispute any errors.

6.

Obtain your credit score

.

Your three

-

digit credit score tells lenders and businesses how well you manage

your credit and your finances. S

cores range between 500 and 850. The higher

the number, the better t

he rating and the better chance

you have of obtaining

credit at a better rate. You can purchase your credit score through any of the

nationwide credit reporting agencies after

receiving

yo

ur free annual credit report

at

www.annualcreditreport.com

.

7.

Eliminate credit card debt.

Credit cards can make it easy to pile on debt.

If

your debt adds up

faster than

you

can pay it

off, you’re likely

l

iving beyond your means.

Stop using the credit cards

and pay off existing balances

–

the sooner you do, the less you’ll pay in interest.

Remember: not all debt is bad; taking on loans for higher education or to buy a

home is really an investment in your fu

ture.

8.

Take advantage of free money.

If your employer offers a contribution match for retirement savings or heath

savings accounts, be sure that you’re

c

ontributing enough to obtain the maximum

match amount

. Otherwise, you’re missing an opportunity for f

ree money.

Maximizing your contributions

can lower your taxable income.

9.

Assess your insurance policies

.

Insurance

is an important tool for protecting against financial hardships, and the

premiums you pay can be one of your top household expenses. Talk wit

h your

provider to be sure you have the appropriate level of protection

–

that way, you’re

not paying too much

for coverage

.

10.

Use legitimate financial institutions

.

Millions of people do not rely on traditional banks or financial institutions to

manage th

eir money. Open a checking and/or savings account at an FDIC

-

insured bank, savings and loan, or credit union. Be sure to research whether

there are any fees for their services before choosing an institution.