week 5: Banking & Paying Bills
Last evening, we learned the difference types of accounts in the bank institute. What tool would you utilize to differentiate the difference between paying bill and saving for big ticket item or emergency? Want tracking tool would you use to keep a record of your finances?
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Recommended Tracking Tools:
- App-Based
Tools:
- Mint
(free, beginner-friendly)
- YNAB (You Need A Budget) (great for goal setting and proactive planning)
- EveryDollar
(good for zero-based budgeting)
Manual Tools:
- Excel or
Google Sheets – use templates to track:
- Income
- Fixed & variable expenses
- Savings goals
- Emergency fund progress
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ReplyDeleteFood for thought and what we discussed yesterday in class.
DeleteHow to Take Control of Credit Card Debt
Know What You Owe. Start by listing your balances, interest rates, and minimum payments. Having a clear view helps you make a plan.
Pay More Than the Minimum. Even an extra $10–$20 above the minimum can reduce the total interest you’ll pay and shorten your payoff timeline.
Choose a Repayment Strategy.
Snowball Method: Focus on paying off the smallest balance first for a quick win, while keeping up with minimums on others.
Avalanche Method: Focus on the highest-interest debt first to save more on interest over time.
Avoid Adding New Debt. While you’re paying down balances, try to use cash, debit, or a budget-friendly alternative for new purchases.
Build a Savings Cushion. Even $10 a month set aside for emergencies can help prevent turning back to credit cards when unexpected expenses pop up.
Credit card debt may feel overwhelming, but every extra payment and every dollar saved brings you closer to freedom. Taking small, steady steps not only saves you money in the long run; it also helps you feel more confident and in control of your financial future.
I feel overwhelmed paying off my credit cards, but I'm going to tackle it. Thanks for your advice.
DeleteI had my credit cards for over 15 years and good standing and it wasn't until my other passed I had to Max all of them out and started drowning with all the repayments that I had to make because all the interest was Sky High and minimum payment was not enough so I can see definitely how using the snowball method can help. Now that I pay one person to manage my credit card debt, I'm planning to make extra payments so I can finish in about 2 years or two and a half years instead of three. I also have more year left on my car loan, and I'm considering putting extra payments towards the principal to pay it off faster. It feels good to be taking control of my debt and making real progress.
DeleteNija I am very curious on the debt consolidation program and how it affects your credit? So if you wouldn’t mind sharing your knowledge on it I would greatly appreciate it. I can share my email with you. I have used the snowball method before and yes that helps but I need to incorporate other things to help pay it off faster. At my age I can’t afford to keep living to just pay bills and not have a cushion to fall on.
DeleteSure, Amy I can tell you. I do not gate keep. So the company I use I found through one of the guys on "Shark tank" and yes my credit will take a beat but it will take a bigger beat if I didnt do anything as well. I've dealt with them for over 6 months already and they talked to 6 of the 7 credit card companies for me on my behalf. They go through everything with you and give you options. I pay $241 every paycheck. It gives me a piece of mind because before only 1 of my card payments was $240. My email is momof5kings@gmail.com if you want to email me.
DeleteI will use online banking to take charge of my fi ancestors. I'll track my spending that way. I have 2 banks
ReplyDeleteIn one bank I'm going to keep my emergency savings and my down-payment for a house. In the other ill keep my regular money for bills and will have a savings for life events. I'm going to use my app to pay bills like the banker showed us.
Putting your accounts like that is smart, you have the house and emergency money safe, and still have your regular funds ready for bills. Using an app to pay bills is a game-changer. You're taking control!
DeleteI use different accounts with the two credit unions that I have I try to do my best to put money in my savings for emergencies and the other savings is High ticketed items that we need to buy. I want to start using a budget app in my phone but I just write it down for now so it's visible to my family and me to see what has been paid and what hasn't collectively. I'm hesitant to use bill pay even though it's offered through my Banks because they use your checking account and it takes forever for it to process and I like the money taking out of my account quick as possible.
ReplyDeleteI also use 2 credit unions and I think I am going to look into a regular bank strictly to pay my bills and emergency fund so that I can keep my goals separate.
DeleteAmy, you should look at the credit unions that you have because they might offer the same thing.
DeleteHello ladies,
ReplyDeleteI started this month with tracking my money.. this is so I can clearly see where my money is going. so I can have a realistic plan to tackle my debt and to have emergency cushion.. I am strongly thinking about using the online banking to pay my bills. It seem like it’s an easier way to pay.
Yes Quanna I agree I think those tools will greatly help us reach our goals. I have to sit and see how to properly use it.
DeleteYou can do it. I have my bills set up so I can pay them in online banking. It's convenient all in one spot.
DeleteYes, that's really smart. Tracking where your money goes is the first big step. Once you see all of it laid out, it's easier to make a real plan. We definitely have to have an emergency stash. Life is wild, sometimes, you never know what comes up. Online banking is a real big step for you. But it does make paying bills less stressful. You're on the right track, keep pushing!
DeleteHaving the Bank Representative speak opened my eyes so much. The knowledge she gave in the little time she had was great. I am def going to change my method of paying down my debt. I have been using a notebook for my debt, and every paycheck I utilize it to see what is being paid on. But I also will be changing using my debt card and utilizing bill pay. I have been working a second job now for a little over a year now and it has helped. I just have to get strict again I was doing great until this summer and fell behind again (my own doing) but I’m motivated more than ever now. This program and the my peers have opened my eyes tremendously to the options that are available.
ReplyDeleteAmy. You can do it. I believe in you. Keep on trucking away. Good luck.
DeleteShe definitely dropped some real gems. I use a whiteboard to track all the expenses that come out of our paychecks once a month and check them off when they're paid. But I would like to find an app that all of us can use that we can all see it in real time. I feel you 100%. It's not hard to try to maintain everything and have a life, especially when dealing with two jobs. That's hustle right there. We are all learning and growing together in this program, it has been a real eye-opener. We got this!
DeleteI has no wifi I am sad I missed this class, credit cards are my biggest problem. I am in the process of trying to pay the smallest to the biggest.
ReplyDeleteI would use an app or a notebook to keep track of my finances. Unless I came into a bunch of money, id then use a professional.
ReplyDelete