Tips from a Banker-Momma :: Budgeting, Saving and Preparing For Your Future
I started my banking career in 2009, however I believe that banking was always a part of my life in one way or another. It’s a part of everyone’s life, really! I went to a great school and have a college education, and yet I graduated LSU without a true understanding of budgeting, saving and preparing me for my next steps in life. I knew enough to be dangerous! After 15 years in this industry, I feel prepared to offer some basic words of advice to other mommas that are trying to get (and keep) their families on track for the future.
Here are my top 10 tips for getting started!
1. Establish a relationship with a banker.
Not a bank… a BANKER. Someone that you can call if you see fraud on your account. Someone that will walk with you through a loan application. Someone that will come alongside you in your business. Banking is all about relationships! Banks all offer the same things. It’s people that make the difference!
2. Have a “round-up” savings account.
This is a type of savings account that is linked to your checking account. Every time you swipe your debit card, the charge is rounded up to the nearest dollar, and that amount is deposited into your savings account. This is an easy, low-stress way to save without having to think about it.
3. Make a spreadsheet.
This document should show your incoming monies and your outgoing expenses. It is a living document that gets updated monthly. At any given moment, you can pull up that file and be able to tell what is owed on what bills and how much money is in each account. Think of it as an editable personal financial statement.
4. Pay yourself FIRST!
Remember that spreadsheet we just talked about? Use it! Look at what is coming in, what is going out and determine how much you can realistically save each month. When you get your paycheck, make a transfer of that amount to savings. If you have direct deposit of your paychecks, you can even request your employer to split your paycheck up into a portion that goes to checking, and a portion that goes to savings.
5. Establish life insurance for yourself.
If you have the option through your employer to obtain coverage, this is usually the least expensive way to go. Even if you do not, I highly recommend meeting with a life insurance agent to evaluate what your needs would be in the event of the death of a spouse. A good rule of thumb is to account for funeral expenses, payoff of your mortgage, education expenses for your children and any loss of work for your spouse for at least the first few months. The younger you are when you establish this, the more affordable it is.
6. Establish life insurance for your children.
This is something you can start for them when they are as young as a few days old, and that they will have forever. Plus, many policies will grow over time and will have cash value to be drawn upon for education expenses down the road!
7. Check your subscriptions!
It is so easy to sign up for subscriptions with the intent to cancel before the free trial expires, but then never get around to it. It seems like a small thing, but I find that by doing small things like this on a disciplined basis, I can save a good bit at the end of the month.
8. Be a carrot-chaser!
I love this one. I don’t know about you, but I find it difficult to save just for the sake of saving. I find it less difficult to save for something specific, like a vacation! Maybe your carrot is something fun. Maybe it’s a credit card you are trying to pay off. Maybe it’s saving for college, a wedding or some other sort of life change. Regardless of what it is, I find it helpful to name the goal, and make steps towards it every month. Then reward yourself for getting there!
9. Protect your credit.
Data breaches are rampant, my friends! Once a year, you are eligible to pull a free credit report through www.annualcreditreport.com. Review your report to ensure that there are not inquiries that you did not authorize, or credit taken out that you did not know about. You can put a freeze on your credit as a precaution, as well, that can be removed temporarily if it needs to be.
10. Talk to your kids about money!
Let your little ones in on the idea of savings, wants versus needs, and how to maturely handle their money. We have done this with our daughter with her Tooth Fairy money. We talk about how much she receives; she puts some in her savings account, and then she takes some to be used at the Dollar Store for treats! It’s a good and fun teaching tool and something that I think she will appreciate when she’s older.
