How to apply a proven three-step formula ― recognize, reframe and respond differently ― to rewire the brain for a more confident approach to wealth building.
Why women often process financial information in a detrimental way.
Why every woman needs to know about financial planning.
How to eliminate damaging financial behavior.
How women can empower themselves to build wealth.
Four questions this book will answer for you:
Why do all the men in my life have such a vastly different approach toward money than I do?
Is there a way for me to rewire my brain to process information differently?
Will I be stuck in a financial rut forever?
Which obstacles are standing between me and financial empowerment?
What people are saying about this book:
“If mastering your money feels daunting, you need this book. Barbara expertly exposes what could be holding you back with simple, practical solutions to finally rewire your thinking and truly build a wealthy life.” — David Bach
“Barbara Huson is the unequivocal leader in helping women rewire themselves for wealth. This book will go down in history as a total game changer for us.” — Ali Brown
“This book will change your life, if you let it.”— Marci Shimoff
“Barbara Huson has done it again. By digging into the ways women think about money differently than men do, she is able to chart a path toward lifelong security — and wealth.” — Jean Chatzky
Your Turn: What did you think about Rewire for Wealth? Share your thoughts with us in the comments.
Why fumble for your wallet at checkout when you can just pay by using your phone?
With more than 81% of Americans owning smartphones, contactless payments by digital wallet and mobile payment apps are now more popular than ever. Contactless payment is also becoming increasingly available at checkout counters across the country, with six in every 10 retailers accepting digital payments, according to research by the National Retail Federation.
Switching over to paying for your daily purchases with a digital wallet is simple. You’ll need to choose between popular mobile payment apps, like Google Pay, Apple Pay and Samsung Pay. All of these apps are similar, but Google Pay is your app of choice for all Android phones, Apple Pay works with recent Apple devices, and Samsung Pay offers the widest acceptance of all digital wallet apps. Once you’ve downloaded the app, you’ll need to load your credit union credit and debit card information and then finish setting up the app with your personal authentication process. When this step is complete, your app is ready for use.
Here are some of the benefits of using mobile payments.
The biggest and most obvious draw of mobile payments is their incredible convenience. No more pawing through cards at the checkout counter while the people standing in line behind you are growing impatient. No more hesitating over a stack of cash. Just pull out your phone, open your digital wallet app and tap or wave your phone near the payment-enabled terminal. It’s that easy.
Using a mobile payment app to complete a purchase has several security advantages over traditional payment methods.
First, it eliminates the need to carry around cash or credit cards, which always has the risk of being stolen or lost. Misplaced credit cards in particular can be a nightmare for consumers, making them vulnerable to full-blown identity theft.
Second, mobile-payment apps use extra security measures to protect the user’s data, such as encrypting all personal information and utilizing bio-metric authentication features, like fingerprint scans and facial recognition.
Finally, each transaction that takes place over a mobile payment app is tokenized. This involves a one-time code generated by the payment terminal, or a “token.” The token is used to complete the transaction in place of the buyer’s actual payment information. The token cannot be used for any other transaction and is effectively useless if hacked. The buyer is thus protected from fraud.
Mobile payments are super-fast. Instead of counting out cash or inserting a card into a payment terminal and waiting for the transaction to clear, it’s just a one-two-three tap to pay. With mobile payments, checking out in any store can take just seconds from start to finish.
Budgeting and expense-tracking
Digital wallets can be easily integrated with money-management apps, making budgeting easy. Every transaction will be instantly recorded for future reference and review. Additionally, retailers generally offer electronic receipts with mobile payments, as opposed to paper receipts which are easily misplaced.
Ever since the world entered the alternate reality of COVID-19, mobile-payment apps have enjoyed an enormous boost in popularity. In fact, retailers have seen a 69% rise in contactless payments since the beginning of 2020, according to a study done by the National Retail Federation. This is likely due to the fact that consumers are wary of shopping in brick-and-mortar locations and are hesitant to handle germ-infested cash. Inserting a debit card or credit card into a public payment terminal that processes payments for hundreds of cards a day is not much of a better option. All of this has made digital wallets the chosen method of payment now more than ever, with 67% of shoppers choosing self-checkout options from their own mobile devices over in-person payment.
Mobile payment apps enable consumers to complete a purchase without making physical contact at germ-laden terminals. There’s no need to use a wallet, cash or credit card at all. Just pull out your phone and your transaction is a quick wave or tap away. It’s the perfect way to pay for purchases without compromising your safety.
Mobile payments are the way of the future. There are so many reasons to love mobile payments. They’re convenient, secure, quick and safe.
Your Turn: Why do you use mobile payment apps? Share your favorite benefit of using digital wallets in the comments.
The most obvious things in life are often overlooked, and your checking account is just one of them. Most people hardly give a thought to this important account and how to best manage it effectively. We’re here to change that.
Here’s all you need to know about checking accounts:
What is a checking account?
Your checking account at Advantage One Credit Union offers easy and convenient access to your funds. The minimum balance required for opening a checking account can be as low as $25. Like most financial institutions, we also allow an unlimited number of monthly withdrawals and deposits.
Checking accounts are designed to be used for everyday expenses. You can access the funds in your account via debit card, paper check, ATM or in-branch withdrawals, online transfer or through online bill payment.
Making transactions using the connected debit card, or through a linked online account, will automatically use the available balance in your account and lower the balance appropriately.
A paper check is also linked directly to your account, but will generally take up to two business days to clear. It’s important to ensure there are enough funds in your account to cover a purchase before paying with a check.
Many banks charge a monthly maintenance fee for checking accounts.
According to Bankrate’s most recent survey on checking accounts, only 38% of banks now offer free checking, compared with 79% in 2009. Monthly fees can be as high as $25 a month.
Most checking accounts offer a very low Annual Percentage Yield (APY) on deposited funds, or none at all. Institutions that offer checking accounts with interest or dividends will generally charge a monthly fee, with the fee being higher for accounts that have higher rates. They also generally require a minimum balance in the account at all times or a minimum number of monthly debit card transactions. According to Bankrate’s survey, you’ll need to keep an average of $7,550 in an interest-yielding checking account at a bank to avoid a steep maintenance fee.
Funds that are kept in a checking account at a bank are federally insured by the FDIC for up to $250,000. Credit unions feature similar protection for your funds, with all federal credit unions offering government protection through the National Credit Union Association. State and private credit unions may be insured by the NCUA as well, or through their own state or private insurance. Advantage One Credit Union is insured by the NCUA to offer you full and complete protection for your funds.
Managing your checking account
Managing a checking account is as simple as 1-2-3:
1 – Know your balance
It’s important to know how much is in your account at all times. This way, you can avoid an overdrawn account, or having insufficient funds to cover your purchases. Being aware of how much money you have will also help you stick to a budget and spend within your means. You can generally check your balance by phone [or via online checking or a synced budgeting app].
2 – Automate your finances
Make life a little easier by setting up automatic bill payment through your checking account. You won’t miss the hassle of paying your monthly bills, and you’ll never be late for a payment again. As a bonus, you’ll save on the processing fee that is often charged on bill payments made via credit card.
You can also set up direct deposit to have your paycheck land right in your account.
Finally, ask us about automatic monthly transfers from your checking account to savings so you never forget to put money into savings.
[You may also want to consider signing up for overdraft protection, or to have funds transfer from your linked savings account to checking when your balance is getting low.]
3 – Keep your account well-funded, but not over-funded
Financial experts recommend keeping one to two months’ worth of living expenses in your checking account at all times. This way, you’ll always have enough funds to cover your transactions without fear of your account being overdrawn. You’ll also be able to cover the occasional pre-authorization hold that a merchant may place on your debit card transaction until it clears.
It’s equally important not to keep too much money in your checking account. Once you’ve reached that sweet spot of two months of living expenses, it’s best to keep your savings in an account or an investment that offers a higher APY, such as a money market account or a share certificate.
Checking accounts offer the ultimate in convenience and accessibility. Now that you’ve learned all about these often overlooked accounts, let this financial tool help you manage your finances in the most effective way possible.
Your Turn: How do you manage your checking account effectively? Share your best tips with us in the comments.
As we sail into 2021, many Americans are struggling with the aftershocks of financial disaster. Whether it’s due to a layoff, a smaller workload, medical expenses or a change in family circumstances, the financial fallout of COVID-19 has been devastating for people in every sector of the economy.
Recovering from a financial disaster, due to a pandemic or any other reason, is never easy; however, with hard work and the ability to look forward, it can be done. Here’s how.
Step 1: Assess the damage
Take a step back to evaluate exactly how much financial recovery you need to do. Are you thousands of dollars in debt? Do you need to find a new job? Do you have new ongoing costs you will have to cover each month? Are there any other long-term financial implications of the recent disaster, including alimony and IRS liens?
It’s also a good idea to review your overall financial picture at this point, including your current income and ongoing expenses.
Crunching the numbers and putting it all on paper will make it easier to take concrete steps toward recovery.
Step 2: Accept your new reality and stay calm
Shock and denial are valid stages of grief for any major loss or disaster, but in order for recovery to be possible, it’s important to reach a place of acceptance about your new reality. You can vent to a close friend or your life partner, express your feelings in an online journal or a paper-and-pen version, de-stress with your favorite low-cost hobby and then let go. Revisiting the past and constantly harping on what could have been will only drain you of the energy you need to move on.
Tim Essman, a financial professional with West Coast Wealth Strategies and Insurance Solutions in San Diego, also stresses the importance of remaining calm during an economic downturn. Don’t make any rash moves out of panic and fear, he cautions, as the best move in a financial crisis is to keep things stable until you can evaluate the situation and make rational decisions.
Step 3: Outline your goals
Before you get started on the actual recovery steps, define your primary objectives. Are you looking to rebuild a depleted emergency fund? Find gainful employment that will help bring your income back to its previous level? Pay down your medical bills? Outlining your goals will make it easier to move ahead.
As you work through this step, remember to choose goals that are SMART:
Specific — The goal should be clearly defined.
Measureable — It’s best if there’s a way for you to measure the goal, such as dollar amounts, credit score numbers, etc.
Attainable — Set a goal that challenges you, but is possible to achieve.
Realistic — Your goal should not be completely out of reach.
Timely — A goal without a deadline is just a wish.
Step 4: Create a Plan
You’re now ready to create a full-blown plan to help you reach your goal. Your plan should consist of consecutive steps that lead to a life of complete financial wellness.
Here are some steps you may want to include in your plan:
Trim your spending until you can consistently spend less than you earn.
Build a small emergency fund to help get you through an unexpected expense.
Seek new employment or new income streams, as necessary. Consider moonlighting, blogging or selling stuff online for extra cash.
Start paying down debts. You may want to consolidate your debts with an unsecured loan to make this step easier.
Save more aggressively, with an eye toward your retirement and another toward a large emergency fund with up to six months’ of living expenses.
Step 5: Make it Happen
It’s time to put your plan into action. If you were careful to set goals that are SMART, you should be able to take the first steps in your plan immediately.
Be sure to review your plan occasionally and adjust it if any changes are needed.
Times are hard, but with a forward-thinking attitude and the willingness to work hard, we can all recover.
Your Turn: What steps have you taken toward financial recovery after COVID-19? Share them with us in the comments.
Rich Jones and Marcus Garrett are a dynamic duo on a mission to help struggling millennials learn to manage their money and pay off debt. Together, the pair launched Paychecks & Balances, a podcast with more than 5K followers where they share insightful tips and advice on all things financial.
Jones brings his background in human resources to the P&B community, but it’s his journey toward a debt-free life that enables him to really connect with his audience. Likewise, Garrett has paid down $30,000 in debt and understands the financial challenges facing millennials.
The finfluencers’ interview-based podcast is super popular with millennials looking to learn more about money and/or seeking actionable tips on improving their finances.
Here are the core beliefs of Paychecks & Balances:
Money does not have to be complicated — or boring. When Jones wanted to broaden his financial knowledge, he found the podcasts and blogs available online to be incredibly boring. He’s therefore determined to keep his own podcast jargon-free and entertaining while still providing the audience with valuable information.
Freedom looks different to everybody. We each have our own version of freedom. To some, it can mean being excited to go to work. To others, it can mean having the ability to travel anywhere on a whim. At P&B, no one is shamed for having a day job and answering to a boss, so long as it brings them personal fulfillment.
Mental health matters. Jones and Garrett are big believers in mental wellness. They freely sprinkle conversations about mental health throughout their content.
Diversity isn’t just a buzzword. The duo believe that diversity is key to financial inspiration and education. The P&B podcasts feature a range of guest speakers from all kinds of backgrounds and demographics.
Good career decisions lead to good financial outcomes. You’ll find lots of advice on acing interviews, negotiating salary and choosing the best career path on P&B.
You can tune into the P&B podcast episodes on a broad range of financial topics, check out their blog for easy-to-read articles that pack a real punch and follow the duo on Twitter , Instagram and/or Facebook.
Your Turn: Are you a P&B follower? Tell us about it in the comments.
Unless you’ve been living in a bunker for the last several months, you’ve likely caught the term “recession” thrown around on the news more than once. Hearing this word being used to describe the state of the U.S. economy can trigger a range of reactions from mild anxiety to a full-blown stuffing-money-under-the-mattress panic.
For many people, though, part of their angst surrounding the state of the economy is the vast amount of unknown: What is the exact definition of a recession? How is it different from a depression? How long do recessions usually last? What causes a recession?
So many questions — but we’ve got answers! Here’s all you need to know about recessions, the current state of the U.S. economy and what all of this means to you as a private consumer.
What is a recession?
A recession is a widespread economic decline in a designated region that lasts for several months or longer. In a recession, the gross domestic product (GDP), or the total value of all goods and services produced in the region, decreases for two consecutive quarters. A healthy economy is continually expanding, so a contracting GDP suggests that problems are brewing within the economy. In most recessions, the GDP growth will slow for several quarters before it turns negative.
What’s the difference between a recession and a depression?
A depression has criteria similar to that of a recession, but is much more severe. For example, in both a recession and a depression the unemployment rate rises; however, during the Great Recession of 2008, the worst recession in U.S. history to date, unemployment peaked at 10%, while during the Great Depression, unemployment levels soared to 25%. Similarly, during the Great Recession, the GDP contracted by 4.2%, while during the Great Depression it shrank by 30%.
Depressions also last a lot longer than recessions. The Great Depression officially lasted for four years but continued to impact the economy for more than a decade. In contrast, recessions generally last only 11 months, according to data from the National Bureau of Economic Research (NBER).
There have been 47 recessions in U.S. history, and a total of 13 recessions since the Great Depression. There has only been a single recorded depression in our country’s history.
What causes a recession?
A recession can be triggered by a variety of factors:
A sudden economic shock that causes severe financial damage.
Excessive debt carried by consumers and businesses, leading to debt defaults and bankruptcies.
Asset bubbles, or when investors’ make irrational decisions, overbuy stocks and then rush to sell, causing a market crash.
Excessive inflation and rising interest rates, which triggers a decline in economic activity.
Excessive deflation, which sparks a decrease in wages, further depressing prices.
Technological changes, including outsourcing jobs to machines or other technological breakthroughs that alter the way entire industries operate.
Why the COVID-19 recession is unlike any other?
In June 2020, the NBER announced that the U.S. economy had been in recession since February.
The COVID-19 recession, also known as the coronavirus recession, the Great Shutdown, the Great Lockdown or the Coronavirus Crash, is unique because it was sparked by an unforeseen pandemic and not by any inherent problem within the economy.
Another anomaly of the coronavirus recession is the super-healthy state of the economy before it hit. In February, unemployment levels were at a 50-year low, stock markets were at a record high and the U.S. economy had enjoyed 126 months of growth, its longest period of uninterrupted expansion in history.
The unusual triggers and the explosive start of the current recession may be good news for its eventual end. Economists initially were hopeful that the recession could reverse itself quickly with a V-shaped recovery. Unfortunately, due to prolonged lockdowns and the nationwide failure to keep infection rates down, they have since declared that a rapid rebound is unlikely. There is still hope for a relatively fast recovery. An April Reuters poll found that nearly half of 45 economists believed the U.S. recovery would be U-shaped: slower and more gradual than a V-shaped recovery, but still fairly quick.
How will this recession affect me?
The coronavirus recession can impact the average consumer in multiple ways.
First, many are struggling with sudden unemployment or will be facing joblessness in the coming months. The most recent data from the Bureau of Labor Statistics show the unemployment rate at a staggering 10.2%.
Second, the economic uncertainty has triggered record-low interest rates, which in turn sparked a rush to refinance. If you are currently paying high interest rates on a long-term loan, you may want to consider refinancing and enjoying a lower monthly payment.
Finally, investments in stocks, bonds and real estate may lose value during a recession.
Your Turn: What do you think will be most impacted by the coronavirus recession? Share your thoughts in the comments.
Title: The Path: Accelerating Your Journey to Financial Freedom
Authors: Peter Mallouk, Tony Robbins
Hardcover: 320 pages
Publisher: Post Hill Press
Publishing date: Oct. 13, 2020
Who is this book for?
Wannabe investors of any age or stage
Readers seeking financial freedom
What’s inside this book?
A step-by-step guide for achieving financial freedom
Strategies for mastering your money from an award-winning financial adviser and an expert business strategist
Real-life success stories from experienced and beginner investors
5 lessons you’ll learn from this book:
How markets behave and how to maintain peace of mind during times of volatility
How to chart a personalized course for financial security
How to select a financial adviser who prioritizes your own interests
How to navigate, select or reject the many types of investments available
Why success without fulfillment is the ultimate failure
4 questions this book will answer for you:
What does the financial service industry not want me to know?
How can I achieve true fulfillment?
Is this a good time for me to start investing?
Can I still master my money at a late stage in life?
What people are saying about this book:
“Peter Mallouk’s tour of the financial world is a tour de force that’ll change the way you think about money.” — Jonathan Clements
“Robbins is the best economic moderator that I’ve ever worked with. His mission to bring insights from the world’s greatest financial minds to the average investor is truly inspiring.” — Alan Greenspan
“Tony is a force of nature.” — Jack Bogle
Your Turn: Have you read The Path? Tell us what you found to be the most valuable advice or benefit of the book in the comments.
Q: My 65th birthday is approaching and I’m ready to apply for Medicare. What do I need to know before signing up?
A: Medicare offers affordable health care coverage to older Americans, but the application process and the various options can be confusing. We have answers to all your questions about Medicare.
What is Medicare?
Medicare is a federally funded program that provides health care coverage to Americans over age 65. It is generally also available to younger people with disabilities and people with end stage renal disease.
What are the different kinds of Medicare coverage?
There are two government-funded parts of Medicare:
Part A – Hospital Insurance. This coverage pays for inpatient hospital costs, is usually premium-free and is available to anyone age 65 or older who has worked — or whose spouse has worked — and paid Medicare taxes for a minimum of 10 years.
Part B – Medical Insurance. Medicare Part B offers coverage for services from doctors and other health care providers, outpatient hospital care, home health care, medical equipment and some preventive services. Part B is not free. Premiums vary by income level but are generally affordable. The standard monthly premium for Part B in 2020 is $144.60
There are also two privately obtained parts of Medicare:
Part C – Medicare Advantage. This plan provides extra coverage over Parts A and B and is offered by private insurance companies contracted with Medicare.
Part D – Prescription Drug Coverage. Also purchased through a private insurer, Part D offers full or partial coverage for prescription drugs.
Both Part C and Part D have monthly premiums, which vary in cost with each provider. There may be an annual deductible as well. Some people love the low costs and robust coverage of these plans, but some others find that they only cover a limited number of providers and are not worth the cost.
How do I apply for Medicare?
If you’re ready to sign up for Medicare, you can apply online or in person at the nearest Social Security office. Applicants will need to provide their birth certificate or other proof of birth and proof of United States citizenship or legal residency.
What do I need to know before I apply for Medicare?
Before signing up for Medicare coverage, it’s best to learn these important facts:
You have a seven-month window to enroll in Medicare. Medicare eligibility begins at age 65, but applicants can sign up three months before the month of their 65th birthday, and up to three months after their birth month. Benefits are retroactive dating back to the applicant’s 65th birthday.
It pays to enroll on time. Signing up for Medicare during the initial enrollment window is crucial. It ensures the applicant has coverage in place should the need for it arise, and it helps the applicant avoid lifelong surcharges on Part B premiums. Otherwise, applicants face a 10% increase on these premiums for each year-long period they were eligible for Medicare but did not enroll.
What if I missed my Initial Enrollment Period (IEP)?
If an applicant has missed their IEP, they’ll need to enroll during the General Enrollment Period, which runs from Jan. 1 through March 31 each year. Applicants can also make changes to their general coverage during this time.
Can I make changes to my Medicare plan?
If you’d like to make changes to your Medicare Advantage or Medicare Prescription Drug plan, you can do so during the annual Medicare Advantage open enrollment period. This year, open enrollment will be from Oct. 15 through Dec. 7, 2020. Any changes made during this period will take effect in January 2021.
Can I sign up for Medicare if I already have health coverage?
Many employees stay on at their jobs past their 65th birthday and will continue to enjoy the health coverage provided by their employer. These employees do not need to sign up for Medicare as soon as they hit 65 — they’ll be given a special enrollment period later on that will allow them to avoid the surcharges of late enrollment.
If an employee wants to keep their employer health coverage and also get coverage through Medicare, that is permitted as an option. In this scenario, Medicare would be used as a secondary insurance and the applicant would sign up for Part A, since that coverage is free and will be used to fill in the gaps of the employer’s insurance plan.
Your Turn: Have you recently applied for Medicare? Share your best tips with us in the comments.
When two people with opposite money views marry, it’s the ultimate in “He said, she said.”
He wants to save every penny so they can afford their dream house within the next five years, and she would rather live it up today while pushing off their dream a little longer.
She wants to budget every dollar to track everything they buy, and he thinks they can trust themselves to keep within their spending limit without accounting for every single purchase.
He thinks golf clubs with a four-digit price tag are a reasonable want, and she thinks they’re a ridiculous luxury reserved for the very wealthy.
And on and on it goes.
For Talaat and Tai McNeely, a pair of high school sweethearts ready to take their relationship further, the money differences were more than just an occasional spat — they were an obstruction standing between the couple and marriage.
As the McNeelys share on their blog, hisandhermoney.com, here’s a sampling of some of the financial issues they were dealing with before they married:
Do we let our credit scores dictate if we are compatible for marriage?
How will our previous money habits play a role in our marriage?
Do we merge our finances?
How can we work together to become better at life and win with money?
Am I a loser because I have now made my debt problems my future spouse’s problems?
Can I change, or is my past really who I am?
Should I have a secret account just in case our money situation gets worse?
How will we purchase a home? Do we put it in both of our names and risk not having a low interest rate due to the lower credit score?
Do I have to take full responsibility for our finances simply because I’m better at it?
Will we have to rely on two incomes to run our home?
What will our lives look like five years from now?
Despite one partner being debt-free and the other carrying $30,000 in debt, the McNeelys decided to get married. They knew the financial road ahead could be bumpy, but they were prepared to weather the storms together for the sake of their relationship.
Today, after years of struggling to chart their own joint money path, the McNeelys are completely debt-free, have paid off their mortgage and run a 6-figure business online. They have learned enormous life lessons on their journey toward financial wellness, and they generously share these lessons on their blog, podcasts, videos and through their private community of couples seeking financial guidance.
The couple is passionate about helping others overcome their financial differences and build a better relationship and a better future together. Check out hisandhermoney.com to learn their secrets.
Your Turn: How do you and your partner deal with money differences? Tell us about it in the comments.
Seeing red? Prevent a negative balance in your account by following these simple tips, many of which can be achieved with a simple enrollment in online banking.
TRADITIONAL BANKING SOLUTIONS Opt out of overdraft coverage. Debit card transactions cause more overdrafts than any other transaction type, according to a 2014 report from the Consumer Financial Protection Bureau (CFPB) recently published by NerdWallet staff writer Spencer Tierney. Luckily, since 2010, consumers have had the option of opting out of overdraft coverage, a service that declines debit card or ATM transactions when your account contains insufficient funds. The alternative would be incurring an overdraft fee from your financial institution for the insufficient funds, as well as a returned item fee from the entity receiving your money. Opting out eliminates the additional fee or stops you from making a purchase that would send your account into the red.
Maintain a buffer balance.
Most overdrafts occur due to relatively small sums, often $20 or less. That means you can avoid a lot of overdraft fees by keeping a cushion in your checking account at all times just in case a deposit is delayed or you make a mistake in your register,” says Marcie Geffner of Bankrate.com. U.S. News contributor Simon Zhen recommends a buffer amount equal to the sum of one month’s recurring expenses (rent, utilities, fuel and groceries).
Link an account or line of credit.
Your financial institution may offer the option of linking a savings account, credit card or specified line of credit to your account that would cover an overdraft if needed. “When a transaction causes a negative balance, a [financial institution] will automatically perform an overdraft protection transfer from the linked account to cover the overdrawn amount,” Zhen explains. “Note that [financial institutions] may charge an overdraft protection transfer fee. With a line of credit, you’re simply borrowing from this credit line and you’ll be subject to interest charges, just like any other loan.”
ONLINE BANKING SOLUTIONS
Use online bill pay rather than auto pay.
Automatic bill pay is a great service as far as convenience goes, but it can wreak havoc on maintaining a budget. Instead of setting up auto pay with billers, utilize online bill pay through your financial institution’s online banking. Making the payments manually gives you control over the transaction, so you won’t have to worry about any forgotten expenses pulling your account balance below zero. It’s also a better option than mailing in a physical check, which could take weeks to clear.
Dutifully monitor spending. Another benefit of online banking is the mobile aspect. Today you can check your account balance anywhere, anytime—sometimes without even manually signing in. Taking full advantage of that increased potential for vigilance can save you big.
Create account alerts.
If you find manually checking your balance to be a bit tedious, automate the process instead. Sign up for alerts through your online banking, which will notify you via email or text message anytime a certain event occurs, such as unusual account activity, an overdraft or falling below a certain amount. Some platforms will even allow you to do this in real time. “When you’re alerted to an overdraft, you may be able to deposit money in time to avoid the overdraft fees,” Zhen says.
By simply being observant and taking advantage of the tools and resources provided to you by your financial institution, you should be able to circumvent overdrafts and their corresponding fees.
Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.