Finance Authority of Maine
FAME's 5 on the 5th
April 2012

Top Five Money Management Tips
 

Join us in celebrating April as Financial Literacy Month by following these important money management strategies:

 


1.  Complete an Annual "Check-Up" of Your Fixed Expenses
 

Are you spending more on "fixed" expenses than you should?  Fixed expenses are regular monthly costs such as cable, internet, cell phones, insurance, and banking.  Most consumers select a product and stay with it for months, even years, without researching other options.  Often, there are lower cost options available that could save you HUNDREDS of dollars annually.  However, you'll have to take the time to research and compare since companies aren't going to contact you to offer a better deal.  It's worth your time and you can put the money that you save into a savings account or pay off high interest credit cards.  
 

 

2.  Review Your Credit Report - It's FREE
 

Visit www.annualcreditreport.com and request a free copy of your credit report.  Your credit report is a collection of your financial information and credit history - consider it your "financial report card." If you have ever applied for a credit card, a student loan, an auto loan or mortgage, you have a credit report.  You should review your credit report at least once per year to make sure the information is accurate.  You may be able to correct any negative credit history and ensure that your identity hasn't been compromised by anyone trying to access credit in your name.
 

 

3.  Identify Your Spending Leaks
 

Without even realizing it, many of us spend a lot on inexpensive items such as coffee, meals out, entertainment, clearance sales, and personal expenses.  To get this often unnecessary spending under control, you'll first need to identify the problem items.  Track ALL of your purchases for an entire month, no matter how small.  After a month of tracking, add them all up to identify your personal spending leaks - you might be surprised to see where your money is going!
 

 

4.  Set-up Automatic Savings
 

Now that you have identified spending leaks, it's time to focus on savings.  Establishing the habit of monthly saving is important, even if it's just a small amount.  Savings can help you lessen your dependency on credit cards and other types of borrowing.  If you don't have any savings, start with a savings goal of $500 - $1000 and build from there.  Almost all banks will, at your request, automatically transfer funds from your checking account to a savings account, U.S. Savings Bond, or stock mutual fund. What you don't see, you won't miss!
 

 

5.  Raise Cash to Pay Off Debt
 

Take a look around your house to see if there are unwanted items that you could sell and turn into real cash.  Things to consider are video game equipment and games, musical instruments, athletic equipment, appliances, DVD's, collectibles, tools, or lawn equipment.  Most have us have households full of items that we don't need or use and it's easier than ever to sell unwanted items.  Host a neighborhood lawn sale or sell your items online.  Use this "found money" to pay off high interest credit cards or to start a savings account! 
 

Finance Authority of Maine
www.famemaine.com
 
Tel:      (207) 623-3263
           (800) 228-3734
Fax:     (207) 623-0095
TTY:    (207) 626-2717