Saving your money in shoe boxes, writing and mailing checks for your bills, and visiting your local branch to check your balance are financial activities that were once revered as responsible money management. For some, these methods are now seen as outdated. With the many tools, financial institutions offer these days, it’s silly to pass up on more automated finance habits. Here are a few tips and tools to automate your financial management to make healthy habit-forming easier.
Why Good Financial Management Habits Are Important
The average number of days it takes to form a habit is 66. For some, it could take over 200 days to do so. Regardless of how long it takes, some habits are worth focusing on forming. While building a budget and saving money takes a lot of discipline, the long-term rewards, such as a good credit score, long-term investments, and homeownership, are more than worth the time it takes to adjust your daily thinking and actions around money. Stay focused and start early. Here’s how.
1. Utilize Automatic Savings Tools
The best financial management habit you can build is saving money from every paycheck. When you’re building your budget, carve out a reasonable amount of money to put away each month. Set up direct deposit with your employer and use your online banking platform to set up an automatic transfer to your savings account each time you receive a paycheck. Because this transfer is automatic, you won’t even miss the extra cash to spend.
2. Keep An Eye On Your Funds
You no longer need to travel to a local branch or ATM to check your account balances. With online and mobile banking, you can check your up-to-date account balances from anywhere you have access to the internet. We recommend that you make a habit out of checking your balances. This can help you better understand where your money is going and make sure you avoid over-drafting your account. Even if you don’t check daily, Highlands Community Bank can send you a monthly e-statement of your account activities for you to review.
3. Never Miss a Bill Payment
Nobody likes a late fee. Many utility companies and subscription services allow you to pay your bills online, so why not take it one step further and automate your payments? With online bill pay, you can set up automatic monthly bill payments in just a few clicks. Send out payments when you receive direct deposit or shortly before the payment due date. Either way, you’ll never miss another payment again.
4. Keep Your Card Secure
Nothing is more dangerous to your financial well-being than identity theft and fraud. Consider the safety of your card information as a top financial management priority. Highlands Community Bank account-holders can utilize the SecurLOCK™ Equip app to create custom controls for your card. With this app, you can automate limits on spending in certain categories, turn your cards on and off, and more. You can even receive real-time transaction alerts.
5. Boost Your Investment Savings
If you’re looking to improve your financial management for more long-term savings, you can automate your investment in your IRA or 401k just like your regular savings account. If you’re looking for tools outside of Highlands’ online and mobile banking, there are applications like Acorns that will take the change from your debit card purchases and invest them in funds automatically – making your metaphorical pocket change go a long way.
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