According to a report from the Federal Reserve Bank of New York, Americans paid off almost $1 trillion in their debts over the past two-years thanks to better budgeting.
“This is good news for the nation’s long-term economy as it shows that Americans are doing a better job at budgeting,”Suzanne Poole, executive vice-president, Retail Sales Strategy and Distribution, TD Bank
Americans can now make a New Year’s Resolution to better manage their finances in 2011. Consumers may stick with the resolution if they have access to financial tools that are easy to use. This will help them continue paying down their debts next year.
These are some tips consumers can use to better manage their money in 2011.
* Develop a realistic plan. You need to know what you want and how you will get it. Make sure that you include both in your budget. Don’t forget about having fun and being realistic.
* Set up a savings account. You should consider opening a high yield savings account to be able use in future emergencies. This will help you avoid unexpected spending.
* Easy-to-use programs always help. Consumers have easy access to many online and inexpensive programs that can help them develop their budgets. Quicken offers a variety of online and computer services. You can also download pre-formatted spreadsheets using Microsoft Excel or Apple’s Numbers programs. There are many options that are user-friendly.
* Pay in cash. Paying with cash is more convenient. The emotional impact of using a credit card is less. Sometimes it is a good idea to use your debit cards to get rewards or avoid ATM fees. Check to see if your bank offers ATM access and debit card rewards. These options could save you money.
* Take full advantage of mobile and online banking. Four years ago, the majority of Americans didn’t have their checking accounts at their fingertips. Now, with mobile banking apps on smartphones and hand-held computers, consumers can keep track of their budgets and expenses every day. The same applies to online banking. Online banking gives you instant access and greater control over your finances.
“To avoid all fees, consumers should use mobile banking apps and online banking to track their checking accounts on a daily basis,”Poole. “They should also consider using automatic bill pay so they know their bills are paid on time every month and avoid late payment fees.”
* Get a full return on your smartphone investment. Consumers have many tools to track their spending, including mobile banking apps. You can find apps for iPhone, Android and BlackBerry devices by doing a quick search. “checkbook”Apps that make it easy to keep track of your bank accounts, bills, due dates, and expenses are great. Most apps can be password protected and don’t require users to enter sensitive information like bank account numbers.
