Avoiding monthly checking account fees is a key piece of practical advice for dealing with money. You can easily find a number of online checking accounts—some that also enable you to use brick-and-mortar bank branches—that often have no monthly fees. Even if you made mistakes and landed in bad check writing databases such as ChexSystems, you still shouldn’t pay monthly fees to give a bank the privilege of doing business with you. If your bank or credit union is charging you monthly fees, ask them to switch you to a free checking account. Fire them if they won’t budge; you are in control of your money and should not waste it on basic checking account fees.
Save At Least 10 Percent of What You Earn
David Bach, author of books such as “Smart Women Finish Rich” and “The Automatic Millionaire,” urges people to put aside at least 10 percent of the money each month, preferably into a retirement account. If you don’t have a 401K at your work, consider opening an Individual Retirement Account (IRA.) This can save you on taxes and also put aside money for retirement. Bach often discusses the “latte factor” in his work. Too many people literally waste away their financial future with daily coffeehouse purchases; giving up just a few commercial lattes a week can help you save thousands, in some cases even over $1 million, toward your retirement.
Write Down What You Spend
Non-profit financial recovery groups such as Debtors Anonymous recommend writing down everything you spend, especially with pencil and paper. Keeping track of where your money goes is a key to stopping unnecessary purchases and gaining control over your financial life.
Avoid ATM Fees
ATM fees are a potential money-waster. If you have to get cash back and aren’t near an ATM that is a member of your bank, use this easy tip. Go into a drugstore or grocery store that offers a “cash back” option to make a small—and necessary—purchase such as your lotion, vegetables, etc. Instead of using credit, use debit and enter your PIN instead. Type the amount of cash back you need. Most stores do limit you to $100 or less, but this almost always saves you the ATM fee.
Keep in mind that a few fee-free banks—like Fidelity—do credit back all ATM fees. Check with your bank to find out if this is the case, but always remember tip #1: “Don’t pay for checking accounts.”
Use the Library More
One point of practical advice for dealing with money is to use the library more. Most public libraries nowadays have many magazines, books, audio CDs and DVDs for you to use. You can eliminate expenses such as magazine subscriptions, major book purchases, music CDs and DVDs from your life. This could save you hundreds of dollars a year depending on your personal spending plan.
Be mindful not to return materials late; overdue fees especially for CDs and DVDs can really ruin any potential savings.
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