April 16, 2004, Newsletter Issue #3: Stressed out with Taxes - Simplify your Money...

Tip of the Week

SIMPLIFY YOUR MONEY

Electronically deposit ANYTHING that you can: Salary, Social Security, pension payments, mutual fund distributions, etc. Have money withdrawn electronically for utility bills, student loans, mortgage payments, and for deposits to savings accounts and mutual funds.

Whenever you write a check or use an ATM machine, record the transaction in your check-book register immediately. If you are bad about this, keep the ATM receipts in your purse/wallet until you can record them and buy duplicate checks. Make sure that you can retrieve account information from your bank by phone.

Develop a SIMPLE record-keeping system and stick with it. Whatever system you use, make sure there is a file labeled "Un-filed Financial Records." This should be filed at the beginning.

If you own lots of individual stocks, consider selling them and investing the proceeds in mutual funds. Mutual fund companies can diversify better than you can and they will take care of the records.

Keep all of your bills in one place; pay bills once or twice a month; and never open a bill until you are ready to pay it.

Whatever bank that you choose, make sure that it has an automated teller machine (ATM) close to home, office or favorite shopping center. Don’t use ATMs to access your savings account unless you have a lot of self-discipline. Always keep your checking and savings accounts at the same bank or financial institution. Money magazine often evaluates banks state by state. Check your bank out before you open an account.

Try to get down to just ONE credit card. If you have the self-discipline to rip all of your other credit cards up, get a consolidation loan to pay them off.

Check out the interest rates and fees on credit cards and get the best possible deal. Look at the financial magazines in the library or the financial sections of large newspapers. Some credit cards are definitely better deals than others are.

When you write a check to someone that you pay each month (like a credit card account or an utility bill) round it up to the highest dollar or ten dollar amount. This makes it easier to record in your checkbook register and you are less likely to make mistakes in totaling your balance. The company that you overpay will simply credit your account for the difference.

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