Going Cashless and Saving More
Updated: Apr 3, 2020
The following is an article “Going Cashless and Saving More” by Marc Primo.
More and more consumers are now opting to pay for their merchandise online or via credit cards. The prospect of a cashless society is more feasible these days as tech advancements continue to heighten the security of both buyers and sellers. Going cashless can also help you take control of your money so you can reach your financial goals sooner.
When automating your finances, you must first learn how to define your monetary goals, limit your spending, and track your expenses. Once you’re done with these first three rules, you may now plan on how to save more. Here are a few tips that can help you leverage on a more productive cashless lifestyle.
Make direct deposits. For some, having cash on hand gives them the notion that they have purchasing power which can make it easier to splurge. Having your employer arrange a direct deposit to your bank account gets your money to you faster and keeps it safe until you really need to use it. Most banks don’t charge fees for direct deposits so you won’t have to worry about paying extra services. Another plus is how you can easily track the money on your account. To set aside a portion of your income, open a separate passbook account where you can deposit your savings without the temptation of spending it for card purchases.
Plan your budget. While it’s not easy for everyone to trust banks and billers with their personal and financial data, automating your accounts can make it more convenient for you to plan your budget for the month. Review bank and biller policies or seek help from people who understand these kinds of terms and conditions. If you’re satisfied with the services, start planning how you can divide your monthly income in a way that you can monitor your debits and credits more efficiently. Distribute regular portions for utility expenses, savings, mortgages, and loan payments. This way, you can ensure that everything is properly funded, your loans are paid regularly, and your savings accumulate over time.
Auto-pay your bills. Though it might be a bit tedious for some who are not really tech savvy, setting up an auto-pay system for your bills will give you a sigh of relief once you’ve gotten the hang of it. Automating payments spares you the inconvenience of forgetting due dates and settling them directly with the billers. One downside to this is while automated payments can make things a whole lot easier, there may be some instances wherein banks credit your account more than they should due to system flaws. When this happens, just fill out and sign a dispute form so your money can be credited back to your account.
Ensure retirement money. What matters more than saving up for today is ensuring that you have enough in the well when you retire. Fund your retirement savings through automated systems set up by your employer. Check if your company has a matching policy and gradually grow your contributions up to the maximum rate that your employer can match. You can also visit www.bankrate.com to calculate how much your retirement contribution may affect your paycheck after all your current expenses.