Where’s All YOUR Money?

No stamps, no trips to the post office, and being basically effortless are just a few of the wonderful reasons people like to make electronic payments. Although this methods seems to be virtually unproblematic, there’s a downside to just about everything, including convenience. Still everyone often finds themselves asking “where’s all my money?’

Five places where your money can veil itself:

• Often times, it is distressing to hand over that cold hard cash. As you pay your bills with cash or have to write out a check, you are very observant to the fact that the checkbook or wallet is getting much thinner. Give yourself a monthly allowance. Use that money for dining out, a cup of java, a quick stop at the market and any other minor take-for-granted things that you find yourself swiping that plastic to pay for.

• While paying bills electronically is not a bad thing, be sure to scan the statement carefully for any hidden or “fraudulent charges”. Banks and computers are not always error free. More times than not, if you find a non-valid charge or one that you feel is in error simply call the financial firm, they will rectify the problem; usually resulting in crediting it back to your account.

• Be sure to fill in the amount you are paying manually. The ones with the automatic fill feature may fill in the minimum amount due or it may fill in the amount you last paid. This could result in not paying enough (which may add a late fee because the minimum amount was not paid) or possibly paying more than you budgeted for at that time causing you to be overdrawn (again possibly adding penalties and fees.)

• Know when to hold and when to fold. Saving 10 or 15% by opening a store credit card at the time of your purchase sounds like deal, and it is, providing that you pay off the balance in full when you receive your statement. Many are not disciplined enough to do this. Resist the temptation of overspending as well just because you are getting the percentage off. If you weren’t planning on buying it, then don’t. On the flip side, don’t soar into closing all your credit cards either. This can be harmful to your credit score by decreasing the grand total of your spending limits, causing you to appear a higher risk. Only close the ones charging you an annual fee.

• Track your spending. Frequently log into your accounts and monitor the charges and payments. This will help you keep better control of your spending. If you discover you are spending too much, you have the opportunity to get a more aggressive hold on spending. You will also be able to have a better perspective of what is coming at the end of your statement cycle.

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