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We’ve all heard it before when checking out at a retail store. Chances are, you’ll be hearing it a lot more over the holidays as you ramp up your holiday shopping.

It can be tempting — you can make a large purchase today, and pay it off over time interest-free. Some companies will even throw in a gift card or a discount if you apply for their credit card. But before you say “yes” to the cashier, there’s one hidden trick that these companies often use. If you’re not aware of it, your “free financing” might end up backfiring in a big way. (See also: Should You Sign Up for That Store Credit Card?)

What is a “deferred interest” credit card?

There are two types of credit cards that offer free financing: 0% Intro APR cards, and deferred interest cards.

You see ads for 0% APR cards all the time — you get 0% APR for a limited time. After that, the standard interest rate goes into effect. When stores offer a “deferred interest credit card” you might reasonably assume they work the same way. But they are very different.

With a deferred interest card, you must pay off the charge in full before the promotional free financing period is over. If you don’t, you’ll have to pay the full amount of interest charges, as if that interest rate was in effect the whole time. All that “deferred” interest comes rolling back the moment the promotional period is over, not just on the balance you have left, but on the entire purchase amount.

And it’ll be a heck of a bill too: the interest rates on these types of credit cards are often sky-high, running upward of 25% APR. As a comparison, the current average interest rate for all credit cards combined is 13.08% APR, according to the Federal Reserve.

Let’s look at an example of how much a deferred interest credit card might cost you. A store credit card offers 12 months deferred interest financing, with a standard 27.99% APR. If you make a $1,500 purchase and only make the minimum payments during those 12 months (about $45), you’ll owe a walloping $321.63 in interest at the end of it — and still owe over $950 on your purchase.

How do you spot a deferred interest credit card?

Your first clue is who is offering the card. Most deferred interest credit cards are offered by retail stores. If a store employee is trying to get you to sign up for the card, ask them: “what happens if I don’t have the purchase paid off by the end of the financing period?”

But the best way to find out if the card you’re interested in really is a deferred interest card or not is to simply look at the Terms and Conditions disclosure. Here’s a snippet from a store credit card’s disclosure to give you an idea of what the language will look like:

“If the balance is not paid in full by the end of the promotional period, interest charges will be imposed from the purchase date at the purchase rate on your account which is 26.24%.”

See how the charges are imposed “from the purchase date?” Other words to look for are “deferred” or “financing” or “no interest if paid off in X months” which is different from just 0% APR during the promotional time. A credit card that offers 0% APR for 12 months mean that there are no interest charges on your balance for 12 months, then at the end of the 12 months, the standard APR will start, and will only be applied to the currentbalance, not the entire purchase. (See also: Same-As-Cash Store Offers vs. 0% Intro APR Credit Cards — Which Is Right for You?)

Come up with a game plan to tackle your debt

Despite all of this, deferred interest cards aren’t necessarily something you always need to avoid. In fact, they can really help you out — as long as you have a game plan to deal with them.

Setting up a plan is simple. All you have to do is take the amount of your purchase and divide it by however many months you have to pay off the charge. If you want to play it on the safe side, you can even subtract a month or two to give yourself some space if something comes up. That way, you’ll have it paid off with plenty of time to spare.

Here’s an example. Say your child’s old computer died, and you want to buy them a new $1,100 computer for Christmas. Luckily, your local electronic store chain offers a 12-month deferred interest credit card, which you use to purchase your new computer.

If you want to have it paid off early, divide the purchase price ($1,100) by 11 months, to give you a monthly payment of $100. You can further boost your chances of having it paid off by setting up that payment on autopay, so then you don’t even have to worry at all about making payments. (See also: The Best Store Credit Cards)

When you should choose a store credit card over a 0% APR card

A 0% APR credit card will give you the safety net in case you don’t actually pay off the entire balance within the promotional time frame. Even if you leave a $10 balance on a store credit card, you’ll get charged all the interest from the purchase date. It’s pretty brutal.

It can also be of use to you even after the promotional period. Perhaps it’s a very good travel rewards credit card that can fund your next vacation.

But there are times you might end up choosing the store credit card instead.

You have bad credit

I won’t remind you that if you’re in this position, you should be considering ways to build back your credit which doesn’t include adding more debt. But assuming you’ve already thought this through, getting approved for a 0% APR card might not be in your cards. So if you really need this buffer to pay off the purchase, and you are committed to the payoff goal, then go ahead and sign up for the card. Store cards generally have a lower threshold for approving customers, because their regular APR is so high, and their credit limits usually low.

You will benefit from the rewards

Stores can be generous to their credit card holders, offering big rewards and discounts that will save you loads of money. If you’re a frequent shopper there, and the store card can offer you much better deals and rewards than you’d get from a typical cash back card, for example, then it can be worth it to be a loyal card holder. Just don’t ever leave a balance because the APR will always destroy any savings or rewards the card would have offered.

If you’re considering adopting a location-independent lifestyle, or you’re already a digital nomad, your electronic devices are critical to you being able to work while you travel. Making sure you’ve got a strong internet connection and plenty of power can be challenging on the road. Without those, your productivity will suffer, which could cost you big bucks. Here are four tech add-ons to stock up on before your next trip that can save you both time and money.

Wi-Fi range extender

If you’re working while traveling, you probably spend a significant amount of time holed up in your hotel room, hunched over your laptop. Or if you’re taking a well-earned vacation, you might choose to relax by streaming a movie or listening to some music. The problem comes when you find yourself confined to a room that’s far from the router with a patchy signal. The speed can slow so much that it feels like you’ve gone back to the days of dial up.

Luckily, there are devices that allow you to seamlessly connect as if the router was right next to you. Wi-Fi range extenders increase the coverage areas and boost the strength of slow connections in areas farther from the router. All you need is the network’s password, and to be at least on the edge of the signal to set it up. Most hotels offer free Wi-Fi to their guests (or for a small fee), so you should have no problem getting their network password. Vacation rentals will most likely include this for you to use, as well.

There are two main kinds of Wi-Fi range extenders available. One plugs into a wall socket and picks up the signal from the router by amplifying it and then transmitting it again. This allows anyone with the password to access the extended network, so it’s the preferred kind to use if you have multiple devices, or if there is more than one person who needs to use the Wi-Fi connection. However, it does mean that you need access to a wall socket, which may be difficult depending on where you are.

The second type is a mini antenna that plugs directly into the USB port of your laptop. It will pick up a weak signal and turn it into a strong, consistent connection. The benefit of this model of Wi-Fi extender is that you don’t need a wall socket to use it — making it more convenient when there isn’t one available. However, it will only work for the device it’s plugged into, and many models only connect to laptops, meaning your phone or tablet will still be out of commission. (See also: 6 Ways to Slash the Cost of Wi-Fi When You Travel)

Portable charger

When you’re in a foreign country, you tend to rely on your gadgets even more heavily than when you’re at home. Smartphones have become indispensable traveling tools that enable you to do anything from booking accommodation and searching for directions, to downloading your boarding pass or ordering an Uber.

But, virtually all of your entertainment devices require a charged battery to function. Whether it’s an e-reader, a tablet, a camera, or a Bluetooth speaker, they all need to be juiced up to be of use while you’re on the go.

A portable charger, also known as a power bank, can help you avoid a dead battery while you’re out and about. You can charge your devices on the go, instead of needing to be chained to a wall socket while waiting for your devices to charge.

Power banks come in all shapes and sizes, and hold varying amounts of power. Tiny, lipstick-sized power banks will fit in your pocket, while the highest capacity models are understandably more bulky, but can power anything up to the size of a laptop. You can even get solar powered power banks, which will convert the sun’s rays into battery juice.

Portable Wi-Fi router

If you’re a frequent traveler who is constantly connected to the internet, then a portable Wi-Fi router may be a good investment. Essentially, it’s a router that works like any other, allowing you to wirelessly connect multiple devices at the same time. The difference is that a travel router accesses the internet through a tethered cellphone, using a sim card and USB cord. You can create your very own private Wi-Fi network anywhere there’s cellular coverage, whether you’re on the beach or lounging by the pool.

The best portable Wi-Fi routers are unlocked, so you can pick up a cheap local sim card in whichever country you’re in. Or, you can purchase a global sim that gives you coverage across several countries, but these are often more pricey than a local sim. If you’re going to a country where you’re able to use your regular data package, like Mexico, you can even use your existing sim card.

Beware, though: Not all portable Wi-Fi devices are created equal. This is particularly true in regards to speed, as some are capable of providing standard 3G, right up to 4G+ connectivity to allow super quick downloads. They also come in different sizes, the most practical of which can easily fit in your pocket. (See also: 8 Ways to Save on Smartphone Costs While Traveling)

Travel surge protector

Power surges can have catastrophic consequences for your electrical devices. They’re usually over in milliseconds and occur multiple times per day in electrical circuits all over the world.

There are two main types of power surges that occur, with multiple potential causes. First, there are surges sparked by outside events, like storms, lightning strikes, or compromised power lines. Unfortunately, these are usually very strong and there’s not much you can do about them.

Then there are surges that arise inside, usually caused by faulty electronics or when high-powered electrical devices are in use. The demand that elevators, refrigerators, or even hairdryers momentarily put on an electrical circuit can result in a potentially devastating power fluctuation.

There are many countries across the globe where the power supply simply isn’t as advanced or reliable as it is in the U.S. If you want to prevent having your precious electrical devices fried by an unexpected power surge then you need to add a travel surge protector to your packing list.

It plugs into the wall socket like a standard travel adapter, and you plug your devices into it. The surge protector acts as a barrier to stop any electrical spikes from cooking your electrical gadgets, saving you the potential inconvenience and cost of replacing them.

If the words “open jaw” and “stopover” are new to you, you’re going to want to read through this post when cashing in your miles from your travel rewards cards for your long awaited vacation. If you’re planning a vacation in Rome, why not fly to Paris first and stay a week or so? The flight will be free. I’m going to break down what open jaw and stopovers are, what their limitations are, and how you can utilize them to enjoy free flights. Let’s get started.

See also: Which Credit Cards Have the Best Travel Redemption Value?

Introducing Open Jaw

Independent Traveller says “an open jaw flight is one that, in the simplest terms, flies from Point A to Point B, then from Point C back to Point A.”

Example: You take a flight from New York to Paris, then you travel overland (or by sea or by air) from Paris to Morocco, and then you return to New York from Morocco to complete the loop on your awards ticket. The ticket you booked is New York to Paris and then Morocco back to New York and booking this way will not cost you any extra points.

Open jaw tickets (while not available on all airlines) are only available for those booking flights with their awards, meaning that you can not take advantage of this method of travel if you are paying for your flights with cash, credit, or whatever.

If you were to draw this trip on a map, the flight portion of the journey would look like an open jaw and that is where this method of booking gets its name. In the photo below, I added some teeth to better illustrate the analogy.

The black lines indicate the flights booked on an “open jaw” ticket. The blue line indicates overland travel.

When Is an Open Jaw Ticket Useful?

This type of ticket can come in very handy when you want to add a long road trip, overland journey, or cruise into the middle of your itinerary. It can also save you a lot of money because in places like Europe and Asia, you can get on a discount carrier flight to fill your open jaw for very little (Ryanair flights in Europe and AirAsia flights in Asia for example). Alternatively, you could fill your open jaw with another awards flight.

Return flights are often cheaper than open jaw tickets, but if you’re planning to backpack around the region for a while before returning back to your arrival point, you may want to consider open jaw.

For example, if you are planning to fly from New York to London, then backpack around Europe for three months before returning to London to fly home to New York, open jaw is probably a better option for you. The money you’ll spend backtracking to make your way back to London is likely more than the difference between an open jaw and a return ticket.

Instead, book an open jaw flight from New York to London, and then back to New York from Istanbul. This way you can travel overland from London to Istanbul and then fly home from Istanbul to New York.

Introducing Stopovers

According to Airliners.net: “A stopover is loosely defined as a connection time exceeding four hours on a domestic itinerary or 24 hours on an international itinerary.”

Example: You fly from New York to Bangkok, but you stop in Hong Kong for three weeks on the way. This is free and doesn’t cost you any extra miles, but can sometimes incur fuel surcharges (see more about these and how to avoid them below).

If you are flying from New York to Bangkok and your flight stops in Hong Kong for five hours, that’s technically called a “layover” or a “connection” not a “stopover.” A stopover exceeds 24 hours and it gives you time to actually leave the airport and explore. The cool thing is that a stopover can be a week, a month, or even up to a year, so basically it can be an extra vacation rolled into your flight itinerary.

Let me explain. Let’s say you want to fly from New York to Barcelona, but you’ve always wanted to see Paris. By booking a stopover in your itinerary, you can easily take your flight from New York to Barcelona, but add a one week stopover in Paris… for free.

How is it free? If you booked with United Miles, a round trip awards ticket from New York to Barcelona will cost you 60,000 miles. Add in a one week stopover in Paris and it would cost the same, 60,000 miles. You’re essentially seeing two destinations for the price of one.

This wonderful loophole is only available for those who book their flights with awards and stopovers aren’t possible with all rewards programs.

When Is a Stopover Useful?

A stopover is perfect for anyone who wants to add a bonus destination into their itinerary. Surprisingly, you can get very crafty with these as well. The stopover doesn’t always have to be “on the way” to your destination.

You can sometimes have a stopover in Hong Kong on the way to Sydney, or stopover in Spain on the way to /checkpoint-charlie/. Get the words “on the way” out of your mind because a stopover can basically be in any city that a flight can be routed to.

The possibilities would be endless… if it weren’t for the individual airline reward program’s limitation and guidelines.

Limitations of Stopovers

Airlines sometimes limit the stopovers by region. With United, you can always stopover anywhere in Europe on the way to Africa, for example. Their system of stopovers is completely region-based. But other airlines are different (and more complicated).

American Airlines routing rules can be a bit tricky to figure out as they include restrictions on mileage and regions. You can use sites like ExpertFlyer.com to navigate these confusing routing rules.

Delta and American rewards both don’t allow stopovers, but you can book a ticket on an American Airlines flight using your Alaska Miles and land yourself a free stopover. (See also: The Secret to Redeeming Travel Rewards Through Airline Partners)

Each and every airline has its own limitations and guidelines for stopovers. Some of the major ones are:

• US Airways = one stopover or one open jaw
• United = one stopover and two open jaws
• Air Canada = two stopovers
• Delta = n/a
• American = n/a

Check out this post by welltraveledmile.com for a full list of airline stopover and open jaw limitations.

Extra Fees and Fuel Surcharges

It’s important that you watch out for hidden fees and extra charges. There’s not much use in landing yourself a “free” flight to Paris if you end up spending more in booking fees and fuel surcharges than you would’ve spent on a cheap discount carrier flight.

Again, every airline rewards program is different, but if you’re booking your flights with United Miles, you’ll never pay any fuel surcharges. If you pay for the flight with different awards program miles, you may have to pay the fuel surcharge.

For example, if you book a flight on an Air Canada plane from New York to London with a stopover in Barcelona and you use your United Miles, you won’t pay any fuel surcharges.

If you were to book the same awards ticket using your Air Canada Miles, you’d have to spend $320 in fuel surcharges! Travelisfree.com has put together this incredibly useful list to help you calculate fuel surcharges on different airlines using different rewards programs.

There are also some extra charges when trying to book stopovers domestically. United, for example, charges 10,000 extra miles for stopovers on domestic U.S. tickets.

Stopover + Open Jaw = Free Flights

Some airline rewards programs allow for an open jaw and a stopover. What this means is that you can essentially have a holiday in Europe, and then get your next one-way flight paid for to another destination.

Example: You book an open jaw ticket for a holiday in Europe. You fly from New York to London, you travel overland from London to Madrid, and then you return to New York after a wonderful three week holiday. But you can actually call your home town (New York in this case) a “stopover” on a flight to, let’s say, Los Angeles.

Don’t worry, you don’t have to go to LA right away, you can plan to fly there up to a year later. That’s right, you can “stopover” at home for a year, and then a year later fly to LA for free.

When Is a Stopover + Open Jaw Flight Useful?

Anytime you have two trips planned in a year, you can use this handy little hack to enjoy a free one-way flight on your second trip. Go on a vacation in Europe, fly back to your home airport but call it a “stopover” to your next holiday destination (LA?). By doing this, you’ve essentially landed yourself a free one-way ticket. Now you just have to book a cheap awards flight back from your holiday.

This secret method of landing a free one-way flight is great, but it requires some advanced planning because you’re essentially booking one and a half holidays at the same time.

How to Book Stopovers and Open Jaws

Booking stopovers and open jaw tickets online can be difficult with some airline websites. Basically you’re looking for two things in the flight booking engine that you’re using.

1. The “rewards flight” check box to ensure that you’re only viewing flights that are available for awards customers (these are usually more limited than regular paid fares).
2. Multiple-destination search will allow you to find flights to one destination and then to another before returning home.

If the Website Is Fussy, Call

Not all websites allow you to search multiple destinations and awards flights only, so the easiest way to book your stopover and open jaw flight is simply by calling an agent. They have a better booking interface to work with and they’ll be able to better help you find the right flights for you. The only problem is that you may not have the same flexibility as if you were to piece together the journey yourself.

By booking open jaw tickets and adding stopovers to your awards flight itinerary, you can save a lot of money. By combining the two, you can actually piece together an amazing trip and even land yourself a free one-way flight to your next holiday destination. Awards flights may not always have the same availability as regular paid fares, but you can take advantage of lucrative loopholes like the ones listed in this article. Give it a try. Book open jaw and stopovers on your next awards flight and watch the free travel add up. (See also: Best Credit Cards that Transfer to Airline Miles)

Have you ever taken advantage of stopover or open jaw flights? Where’d you go?

Several years ago, a great cell phone signal was a nice thing to have. These days, it’s absolutely essential for almost all of us. We are permanently switching from landlines to cell phones, with many of us no longer wanting to pay for two phone services when one will do just fine.

However, one doesn’t always “do just fine.” You’ll know this yourself if you have experienced dropped calls, broken voices, no bars, and a frustrating lack of service when you’re out and about. But it can be even worse when you live in an area with very weak cell phone reception. But don’t worry, there are ways to boost your signal and keep in contact with the world. Here are 6 of the best.

Ask Your Provider For a Free Signal Booster.

The first tip really is that simple, and yes, there is actually a device called a signal booster. It’s also known as a repeater, and it improves the reception at your home or office by amplifying and repeating the signal. Now, there are many variations of this kind of device available for sale, and can be picked uip at places as common as Walmart and Best Buy. BUT, they’re expensive. Some can cost over $500, which is a big chunk of change. And what’s more, it’s infuriating to have to pay for something else because you are not getting the coverage you are paying for.

What you may not know is that many most service providers will let you borrow these devices for a very small deposit; or better yet, no deposit at all. T-Mobile, for instance, offers customers a Cel-Fi 4G LTE Signal Boosterto anyone having trouble getting a good signal, and you are only required to pay for shipping (a measly $6 according to this customer). This is smart on T-Mobile’s part. They know signal strength is a huge issue, and do not want you leaving for another provider, when a simple equipment upgrade will make you happy. So, check into it today.

If You Have Wi-Fi, Use It To Make Calls.

This may seem like an obvious idea to those of you already making Wi-Fi calls, but for many people, it’s an option they had never considered. Most of us are lucky to have Wi-Fi in our homes, and we tap into it with our iPads, computers, DVD players and gaming consoles to access the Internet and online content.

However, it is also very handy for making phone calls, and several smartphones and providers have a Wi-Fi calling feature. You can even set up your phone to automatically connect to Wi-Fi when you get home, and you will not even notice that you are making and receiving calls over the Internet rather than via a cell phone signal. What’s more, the switch between the cellular network and your home or office Wi-Fi network can be seamless. You can enter the house talking on the phone over 4G, and finish your conversation over Wi-Fi. If you don’t have high speed Internet and Wi-Fi at home, but your neighbor does, maybe you can negotiate a small monthly fee to gain access to their Wi-Fi signal.

For an Extended Battery, Bring Out The Foil Tape.

By far the biggest issue most of us face with cell phones, other than poor reception, is battery life. That’s why the extended batteries and cases are becoming so popular. Unfortunately, it’s a case of getting more battery life at the expense of the good signal. Many of the aftermarket batteries interfere with the reception, making it weak, or sometimes non-existent.

Instructables user Geezer Nelson had this problem, and decided to do something about it. All you need is a roll of foil tape (copper or aluminum) that you can buy at any hardware store, and a few other small items. This was very a helpful when I had the same reception problems after I added a larger battery to my Galaxy S4. As you are making modifications to an aftermarket battery, and not one that came with the phone, or the phone itself, you are not doing anything to invalidate your warranty.

Try a Femtocell.

This is certainly not as good as a signal booster, but it may be worth a try if your options are limited. To start with, you need to understand the difference between a signal booster and a femtocell. Basically, a signal booster captures the signal outside of your home or office, amplifies it greatly, and then repeats this stronger signal inside. A femtocell is more like a mini cell phone tower. It’s about the size of a router, and works in much the same way. Femtocells work with one specific provider, and can eat up your Internet bandwidth. BUT, they are easier to install, and are a better option for people who have absolutely no coverage (a signal booster NEEDS some kind of signal to boost). You can read more about femtocells, and the pros and cons of the technology, right here.

Use an External Antenna.

A Jack External Antenna plugs into the headphone jack of your phone and promises to boost the signal. Depending on the make and model of your cell phone, there will be different options available to you. And as always, different options means different prices. Of course, the major drag with these is that they are bulky, inconvenient, and are a horrible looking addition to any phone. Some of them even look like old-fashioned TV aerials. But if you’re out in the middle of nowhere, maybe camping or fishing, it’s a possible option. It’s certainly not one you can just pop in your pocket when you’re out dancing at the club.

Make Your Own Booster Antenna.

If you’re feeling handy, and don’t want to pay money for one of those external antennas mentioned above, you can always build your own discrete version. It can be done very quickly and easily with simple materials.

You will need: Magnet wire; wire cutters; emery cloth; transparent tape; a ruler.

Complete instructions are available on the easy to follow video below, and will take you under a minute. It’s much less conspicuous, very cheap, and it works. But, as the video states, you do this at your own risk. It may invalidate your warranty, or perhaps even brick your phone. But, that’s highly doubtful.

Having a savings account is important. It’s a good place to store your emergency fund, which you’d tap if your car unexpectedly needed repairs or you had to weather months without a job.

But all savings accounts are not created equal, and there are important factors you should consider before opening one. Here are six features to look for if you are searching for the best possible savings account.

1. Interest rates

The single most important attribute of a savings account is its interest rate, of course. The problem is, interest rates attached to most savings accounts are frustratingly low, with many banks offering a minuscule interest rate of 0.01 percent.

You can’t grow your money quickly with a rate like that. But the argument has always been that savings accounts aren’t the place for stashing money if you want it to grow. Instead, it’s a safe place to keep money that you might need to access quickly for an emergency. But if you can find a higher rate, you might as well take it. They’re pretty rare. (See also: 5 Best Online Savings Accounts)

2. No monthly fee

You’d think that with such low interest rates, savings accounts wouldn’t come with fees. But several banks do, indeed, charge monthly fees to keep a savings account there. Usually, you must maintain a certain minimum balance to avoid those fees.

A bank might charge $5 per month if you don’t keep at least $300 in your savings account at all times, for instance. Even if you’re pretty good about keeping enough funds in your account, why take the chance of incurring a penalty if you ever dip too low?

When you’re shopping for a savings account, be sure to pick a bank that doesn’t charge any monthly fees. These savings accounts are rarely worth the hassle. (See also: Are You Paying These 6 Unfair Banking Fees?)

3. No minimum opening deposit

Some banks require that you deposit a certain amount of money into your savings account when you open it. Usually, this is a small amount; say $25. This isn’t too onerous, especially because you are opening a savings account to actually put money in it, after all.

But if you want more freedom to start your savings account with an even lower amount, you’ll have to search for accounts that don’t require any minimum opening deposit. There are some out there, especially in the form of online-only banks. Just make sure that these accounts don’t come with any other fees that might haunt you later.

4. Automatic transfers

Saving money isn’t easy. But if you can automate regular deposits into your savings account, you’re far more likely to save at least some money each month.

You’ll want a bank that offers automatic transfers from your checking to your savings account, and make sure that the bank doesn’t charge a fee for this service. Even if you set up an automatic transfer of just $50 per month into savings, you’ll have $600 after a year. That can add up. (See also: 5 Ways to Automate Your Finances)

5. Mobile check deposits

You just received a check that you’d like to deposit into your savings account. It’s a hassle to head to your nearest ATM or bank branch, but mobile deposit solves that. You simply use your bank’s app to take a photo of your check — front and back — and tell your bank to deposit that check into your savings account.

This was once a rare feature. Today, though, it’s becoming expected, and it is awfully convenient. Whatever bank is behind your savings account, make sure it offers mobile deposits.

6. Easy withdrawal

What if you need quick access to your savings account to cover a financial emergency in the middle of the night? If your bank has a large network of ATMs in your area, you’ll be able to get the money quickly. (See also: 6 Big Ways ATMs Are Changing)

Be careful, though, not to use your savings account as if it’s actually a checking account. Federal regulations say that you can’t make more than six withdrawals from your savings account a month. If you withdraw more, your bank will charge you fees for each withdrawal.

Some banks might allow even fewer withdrawals every month. Look into a bank’s withdrawal policies before you take out a savings account with it.

Usually, the biggest complications that keep things disorganized financially arise from not doing a few simple things.  When you fail to do some or all of these things, it’s easy for your finances to descend into chaos and start causing serious problems in your life.

So here are six things you can do to start simplifying how you approach managing your money and learn to more easily keep it under control:

Track Your Spending

Start writing down every penny you spend for 30 days.  Once you do that you start getting the feel for what you’re spending on everything, then you can begin a monthly budget.  I know a budget may sound complicated, but if you do it religiously it saves you a lot of time and money in the long run.  It may seem a little difficult to manage at first, but it gets much easier the more you do it.

I wrote the book on how to make a budget that works.  It’s fun to read & easy to understand!  Find out more here

If You’re Married, Combine Your Finances

If you’re married, there shouldn’t be “His” money and “Her” money or “His” bills and “Her” bills.  All of it belongs to both of you, as we say here in the South, It’s yall’s money.  So always deposit all of the money into one central checking account and distribute it from there.  Doing that fosters good communication and, along with a budget agreed on by both of you, will eliminate money fights.

Make a “Bills” Calendar

If you have trouble staying organized with paying bills, make a “bills” calendar showing when each bill is due.  Review it once a week and pay the bills due for that week.

Build an Emergency Fund

When you have money set aside for emergencies, you’re not tempted to go into credit card or other debt to deal with it.  Everybody has the occasional emergency, and if you are already prepared when it comes, that’s one less thing you will have to worry about in a time of crisis, and you won’t have to spend months or years paying it off.

Use Cash

Goes along with doing a monthly budget.  Once your budget is done, put cash in envelopes for each spending category and spend only cash, only out of those envelopes.  This simplifies things because you have a set plan to spend only so much, so you don’t end up spending more than you make.

Here’s how to get started using the envelope system and go cash only

Sell Your Crap

Most of us have too much junk that we don’t need, don’t use, and just takes up space.  If you never, or rarely ever use it, then sell it, donate it, or give it to someone that can use it.  Those things don’t add value to your life and don’t bring you any joy.  All they do is take up space and drag you down.  So get rid of the junk and pass it along to someone that can enjoy it.

 

6 Tips to Manage Your Money Better-  Money doesn’t have to be complicated!

Money Doesn’t Have to Be Complicated

When you take steps to simplify how you manage your financial situation, you start being proactive with your money, and it becomes so much easier to deal with on a daily basis.

Money doesn’t have to be complicated, but it does take diligence and attention to what you’re doing.  Finding any way you can to simplify and streamline how you do it will always pay dividends.  It cuts out lots of time and effort you can better spend doing something much more enjoyable.

Question:  What have you done to simplify or streamline your finances?

Leave a comment and tell me about it.

As a financial planner, I’d like to let you in on a little secret: Everyone has the ability to manage their finances on their own. In theory.

The information and knowledge you need to make the right financial decisions is at your fingertips. You simply need to do three things: learn, apply and manage. Let me explain:

Learn the Fundamentals

There is a ton of technical financial information out there, and it takes time to learn what you need to know. The Internet, though, has made this process easier.

You need to focus your attention on these areas:

If you look at those areas and feel overwhelmed, I understand. It’s a lot.

On the other hand, if you look at that list and feel that you know it all, I’d suggest rethinking that. No one out there knows it all. There is always something else to learn.

Again, the Internet makes finding this information easier, but there’s a catch. You need to carefully validate the sources of the information you collect before accepting it as true and accurate. Many financial blogs and podcasts can be extremely valuable, but others are based more on personal experience than on years of education, training, and professional work. Personal stories can help you tune in to your own situation, but they might not reflect a comprehensive understanding of finance or relevant laws and regulations.

Apply Your Knowledge

Knowing that you need to budget and understand your cash flow is one thing, but actually doing it is another.

After you set up the basics, your financial planning needs get more complicated. For example, you might start out by calculating how much money you need in your emergency reserve account, but then realize that you also need to figure out how much to save for retirement. Additionally, anyone earning income is exposed to various risks, including becoming disabled, so you’ll want to find the best way to protect yourself.

It’s all about understanding your unique circumstances, applying appropriate strategies and setting up systems to help you stay on track. There’s no right answer—only the answer that works and makes sense for you.

Much of what applying your knowledge looks like in practice is simply taking action and holding yourself accountable. It can help to write out your financial goals and check in with those regularly to remind yourself why you’re working hard to manage your money.

And to make sure you stay on the right track over time, you should set up check-in points periodically throughout the year. For example, you might want to revisit your budget monthly, your investments quarterly, and your overall financial plan annually.

Manage Your Behavior

This is by far the most challenging piece, because emotions often cloud our thinking. It can feel simple to manage our own money when times are good. However, we often fall prey to recency bias—assuming that what happened in the recent past will continue into the future. Confidence (or fear) projected into the future can distract us from making prudent decisions.

When things get stressful, you get distracted. Other things take up your time, energy, and attention, diverting you from managing your finances.

As you continue to learn, you might also find yourself confused by a myriad of opinions and different ways of doing things. Decision fatigue can set in. It can become extremely challenging to make even the simplest of decisions as you start questioning yourself and your knowledge.

After all, there’s a lot on the line—your money and your life. You don’t want to make a mistake, and you want to do everything you can to maximize your financial resources. Your decision-making can become clouded by fear, and it can just as easily be affected by greed.

To successfully manage your own money, you need to manage your own behavior. That means taking small, consistent actions over time. You need to create your plan of action and stick with it through market ups and downs, through everything from personal struggles to professional triumphs.

Why Work With a Financial Planner Anyway

All that being said, it’s worth reiterating that managing your own behavior is the most difficult part of managing your personal finances. Most people cannot do it successfully.

Most mistakes happen when people depart from rational decisionmaking with their finances. Hopes, dreams, fears, and other emotions start creeping in. We all do this.

It’s easier to manage our behavior when we have an outside perspective. While we can’t necessarily see the bigger picture when we’re immersed in it, someone looking in from the outside, from an objective point of view, may be able to help steer us in the right direction. That’s where a professional financial planner can add a lot of value.

It’s possible to manage your own money, but it’s not probable that everyone can do it successfully. There is a reason why even some financial planners have financial planners. Everything is easier when you have someone who can help hold you accountable. A professional financial planner may be able to help you find more success than you would achieve on your own—even if you know all the right money moves to make.

Get started on your own by educating yourself, applying your knowledge, and practicing smart (rational!) behavior around money management. Then, for long-term success in avoiding behavioral traps and pitfalls, consider working with a financial adviser. Carl Richards put it bluntly but accurately: It’s well worth it to “put someone between you and stupid.”

Budgeting has a bad reputation among a lot of America households who view it as a way to strip all the fun out of spending money. No more shopping. No more eating out at restaurants. No more golfing on weekends.

That is not the purpose of a purpose of a budget.

A budget simply shows how much money you have coming in and how those funds are spent. It’s one of the most important tools in building a successful financial future, because it helps you get the most out of your money.

Regardless of economic standing or which generation you fall into, every consumer can benefit from creating and managing a budget. A budget gives people a sense of control over their money. Think of a budget as a financial foundation. Each person’s foundation is going to be different, just as each financial situation is different.

Choosing a Budgeting System

There are four basic ways to create, track and monitor a budget. Each system uses different techniques, but they all center on organization and attention to detail.

• The Notebook and Pen: This is the oldest method for budgeting, and it’s also the least expensive option. With this method, you simply write down all your sources of income and all your expenses. If they balance, you’re good to go.
• The Spreadsheet: The most popular spreadsheet software for budgeting is Microsoft Excel. Many websites offer free samples of Excel budgeting worksheets that consumers can use, instead of trying to create their own. A spreadsheet lets you organize a lot of information easily and does the math for you.
• Free Online Software: There are several free web-based software programs that can help with budgeting. Such programs like Manilla and Mint.com allow you to create and group your expenses into categories and track your spending, so you can see exactly where your money is going as soon as the transaction takes place.
• Financial Software: There are also financial software programs, but you need to be computer-savvy to use them. Quicken is a leading product.

You can also check with your local credit union or bank for tips and tricks. Your saving institution may even have budgeting worksheets on hand to get you started. If you prefer, the U.S. Financial Literacy and Education Commission (FLEC) has numerous budgeting worksheets and resources to help you at any stage of life.

Creating a Budget

Budgeting strategies and techniques vary across the board. There will be differences, for example, between what works for a first-year college student and one for a retiree. But there are five basic steps in creating a budget. They are all important because they build on one another, helping you organize your finances sensibly.

Step 1: Set Goals

There are two types of financial goals: immediate and long range. Immediate goals focus on using your money today, while long-range goals deal with saving and spending over decades. Both are important, and complement one another: Saving money today affects what you spend now but also how much you’ll have later in life.

You need to determine which goals address necessities and which ones cover luxuries. Then, you can prioritize your financial goals accordingly.

Immediate financial goals include covering current expenses. Some of these are obligatory and include your mortgage or rent payment, car loans, utilities bills, child care, food, cell phone and household supplies. Secondary goals, called discretionary items, include non-essential clothing, subscriptions, dining out and taking vacations. Long-range financial goals could also include retirement savings, investments and charitable donations. If you have debt, paying it down can be both obligatory and discretionary. Making required payments is essential to financial solvency, but paying debt early, while not required, can make long-term sense.

Step 2: Calculate Your Income and Expenses

After you determine your financial goals, you need a plan for reaching them. To do this, you need to evaluate your income and your expenses. Most people budget monthly because most bills follow a monthly schedule.

Start by making a list of your monthly income sources, including your salary (after taxes), any bonuses you incur on a regular basis, and child support or alimony payments. If you don’t know the exact amount, you can use an estimate. Once you have your numbers, add them up. The total is your monthly income.

The next part of the equation is your expenses, which fall into three categories: fixed committed expenses, variable committed expenses and discretionary expenses.

• Fixed committed expenses: These have a fixed monthly amount, such as your mortgage or rent.
• Variable committed expense: These vary from one month to the next month based on need, and would include groceries and gasoline.
• Discretionary expenses: As noted, these are optional expenses and include recreation and entertainment. A gym membership would also fall into this category. Discretionary expenses often make life more fulfilling, but they should be the first expenses to go if you can’t afford the basics.

If you fail to pay off your credit card bills each month, you’ll begin to pay a great deal of interest. This can play havoc with any budget. If your carried-over credit card payments eat up more than 10% of your monthly income, you should consider speaking with a nonprofit credit counselor. Over the telephone or online, a free credit counseling session will walk you through your budget and recommend expenses that can be reduced or eliminated. If you qualify for a debt management program, you may be able to reduce your monthly debt payments as well.

Step 3: Analyze Your Spending and Balance Your Checkbook

The goal in budgeting is to make sure your expenses do not exceed your income. If they do, and more money is going out than is coming in, then you need to make adjustments. This doesn’t necessarily mean you need to start penny-pinching; it just means it is time to revisit the discretionary cost category and see where you are willing and able to cut the fat.

If you make any payments by check, your checkbook register can help you keep track of incoming and outgoing money, and what you spend money on. Although paying by check is becoming rarer, those who stick to this payment method should keep their checkbooks balanced. This will help you avoid overdraft fees or bounced checks, and it can shed some light on your spending habits.

Here are the basics:

• Keep records for all your deposits and purchases. Record each one in your check register, which the bank will provide you.
• Print out or download your monthly bank statement if you aren’t already getting one in the mail. If you’re doing everything online, there is software that can make this step — and budgeting — easy.
• Do your own math for deposits and withdrawals to make sure your bank hasn’t missed anything or taken liberties with your money. Reconcile line by line, making sure your record of checks is the same as the statement.
• Find the ending number from each monthly statement and work backward, check to see what has cleared, and what has not cleared. Deposits that haven’t cleared will need to be subtracted from your balance. If your checks haven’t cleared, they will have to be added back to your balance until they do.
• Go line by line and account for any fees you’re charged. Seeing them up close may prompt you to call and ask to have some removed, which the banks often will do if you persist. Also, add the pennies of interest you may have received.
• Again, if you have access to a computer, or even a smartphone, this process can be automated using financial software or apps, saving you time and frustration. The goal is to review your cash flow, look for errors and learn from what you see.

Step 4: Revisit Your Original Budget

After you’ve had a chance to monitor your income and expenses for a month or two, you will be more aware of areas that need adjusting. Maybe your initial monthly income estimates were off, or perhaps you didn’t account for expenses like car repairs or veterinary bills. Make adjustments, but always balance inflows with outflows.

Once you work out all the kinks in your budget, you need to commit to following it. No budget is forever, however, so periodic reviews are key to success.

If you get a promotion, for example, you can increase your discretionary spending as well as your savings goals. On the other hand, a layoff or fewer work hours could mean cutting back on spending until you restore your income.

Savings should be part of the plan. Financial planners recommend that your savings cover six months of income, enough to compensate for a job loss or other emergency. You might find it useful to open a separate savings account and fund it gradually until you reach the goal. Keeping a separate account will make it more difficult to raid the emergency fund to cover non-essentials.

Step 5: Commitment

Creating a budget is a great step in working toward a more financially sound future for you and your family. Committing to your budget will get you there. Remain realistic, evaluate it often and don’t be afraid to adjust. Budgeting is all about balance.

Managing Your Budget When Unexpected Bills Arrive

As mentioned, an emergency fund is crucial to financial security. Start by setting aside $50 per week. In a year, you would have $2,600, plus any interest, for when the refrigerator stops working or when the transmission blows.

Experts recommend looking at your withholding taxes to find hidden cash. If you receive a large refund every year, perhaps you need to change your filing status to receive additional money in your paycheck to put toward an emergency fund. Unless, that is, you are putting your tax return funds into that fund.

Medical crises in particular can turn a balanced budget upside down. Negotiate large medical expenses, such as an emergency hospital stay, with the hospital. Almost all hospitals negotiate fees. Often if you contact them immediately instead of waiting until the amount goes into collections, the hospital or provider’s office can set up a payment plan.

If not, a medical bill consolidation may help, as it allows you to combine all your medical bills into one lower monthly bill through an agency or a bank loan. This not only makes it easier on you, but the arrangement protects your credit score because you are able to make on-time payments. The downside is it may take you longer to pay your debt in full.

Benefits of Budgeting

Everyone can benefit from taking a pronounced and proactive approach to control their finances. Committing to your budget will help guide you into a much better financial position.

Budgeting can improve your life because it:

• Reveals waste. Creating a budget sheds light on areas that many people neglect on a day-to-day basis.
• Directs priorities. A budget allows for people to look at the big picture of their spending habits and set new priorities to maximize their money’s potential.
• Creates new habits. When people get a clearer picture of how they’ve been using their money, it allows them to shift expenditures into different categories, making them more conscious of unnecessary spending.
• Reduces stress. Finances are one of the top stress-inducing situations. When there is a sense of control over the money coming in and the money going out, the stress can transform into a feeling of empowerment.
• Educates. Having a budget allows people to view money as a tool, shifting the mindset to focus on long-term goals and future needs.

Creating a budget is the first step, but maintaining the budget is where you start to see real growth in yourself and more stretch in your dollar. Sticking to a budget can be a difficult task for people who aren’t used to spending boundaries or self-discipline in their finances, so it’s important to maintain a positive attitude toward the process.

Staying motivated can help alleviate some of the pressures of budgeting. Consider setting aside some money each month so you can look forward to a relaxing vacation at the end of the year.

Finally, set realistic goals. Start slowly, building up to a plan that works for you and your lifestyle.

The Finer Points

Wants vs. Needs

“You Can’t Always Get What You Want”, one of the Rolling Stones well-known 1960s hits, touches on an issue many of us face all the time. The message is you might not be able to get things you want, but if you try, you’ll get what you need.

How do you separate wants from needs and why bother? For many of us, knowing where to draw the line can mean the difference between creating a successful budget and going broke. So what’s the difference. Most needs are synonymous with non-discretionary expenditures. They include shelter, which demands payment of rent or a mortgage, and food, which results in grocery bills. There are plenty other items that are basic and non-negotiable, but the non-negotiable category leaves room for choice.

For instance, if you need a car to get to work, you could buy a used Kia sedan or a new BMW. The price difference is huge, and the Beemer is certain to impress your friends and offer a fine driving experience. The question is what can you afford? If you make a $500,000 a year, the BMW might be yours without stretching your finances. But if you’re taking home $40,000, it’s better to stick with the Kia.

The same rule applies to housing – should you rent a one-bedroom apartment or buy a $400,000 house? Again, both offer shelter, but at radically different costs.

There’s also the difference between needs and items that you could get by without. Think about taking a vacation to Thailand versus a week driving to state parks near your home. Both can offer satisfying and relaxing places to spend your downtown, but the costs are radically different. Also think about impulse buys. Say you go to home improvement store to buy some lawn fertilizer and leave with a lawnmower you hadn’t planned to buy. You might need a new mover, but it’s a good idea to research models and prices before putting your money down.

Knowing the difference between wants and needs is a key to a successful budget. You can budget for some impulse purchases or product upgrades, but understand what you’re doing, show restraint and always make sure your budget balances.

Seasonal Expenses

A sizable amount of your money is likely to go to one-off expenses that arise over the course of a year. Examples include holiday presents, birthday gifts, summer vacation costs and back-to-school spending. Some seasonal expenses are for stand-alone items like presents, others are for basics. Heating you home is an issue for the cold-weather months, for instance, and a higher water bill might coincide with irrigating your lawn in the summer. Clothing is also seasonal, with swimming suits for the summer and heavy jackets for the winter.

When you draw a budget, study your outflows during the past year or two and estimate the impact of seasonal costs, then build those costs into your plan. If your summer costs are much higher than springtime, make sure you save enough in the spring to fund spending in the summer.

Checking in on Your Budget

Budgets are living documents. Just as life is constantly changing, the demands on your budget change too. For that reason, it’s good to regularly review you budget to adjust for changes in income and expenses.

What should you consider? On the income side, you should make adjustments if you get a raise or receive a windfall like an inheritance. You need to adjust if you lose your job or move to a new one. Getting married or divorced requires a massive reworking of your budget. So does having a child. Sometimes the changes are smaller or temporary, things like a medical insurance copayment might require a temporary adjustment.

You don’t need to overhaul your entire budget when changes happen. Your rent is rent, and what you spend each month on your car is unlikely to change. But other things are more flexible. If you income drops, you might eat out less. If it goes up, you could save more, pay off debt quicker or make a discretionary purchase.

There’s no hard and fast rule about when to review your budget. Some financial consultants suggest doing it constantly, others suggest every several months. It’s probably good to consider revisiting your budget when life-changing events occur, and set intervals to adjust for smaller stuff like inflation and changes in fixed costs.

Automatic Saving and Recommended Percentages

You should strongly consider making automatic saving a part of your budget. What is automatic saving? It’s the money you set aside for funding an emergency account, paying for Christmas gifts later in the year or creating a college fund for your kids.

Automatic saving is best handled through paycheck withholding. If you’re saving for retirement and you company offers a 401(k) plan, sign up and have money withheld from your paycheck.  Many employers also offer medical and childcare savings plans, which are typically tax exempt. You can also have your salary automatically deposited in a checking account, then transfer part of the pay to a savings account that you don’t plan to touch.

There are many strategies for automatic savings. Talk to a financial adviser to learn more about the options and what amount of saving you can afford. Once you implement a plan, stick with it. Percentages will vary, but if your company will match contributions to your 401(k), save at least the maximum amount that will be matched. Other savings will be largely determined by your income and expenses. If you need to withhold 20% of your paycheck to cover the rent, make sure you do it. Knowing how much money you need and saving for it will make sure you meet your expenses and prepare for the future.

Financial experts have come up with recommended percentages for spending to help people budgeting for the first time. For example, it is suggested you spend no more than 30% of your gross monthly income on housing, whether you’re renting or owning.

Automobiles are the next biggest expense for consumers and probably the biggest temptation to overspend. The best idea is to keep spending between 10% and 15% of your monthly income. Anything beyond that stretches you thin, especially if a financial emergency arises.

Student loans might be another variable in your monthly budget. There are several income-based repayment plans that limit your payments to 10-15% of your income. That’s a safe number, but often will extend payments a few years and end up costing you a small fortune in interest charges. Try using 20% of your budget, especially if you don’t have a car payment or are splitting rent with roommates.

Other suggested percentages for ongoing expenses include utilities (10%); food (10-15%) and savings (10-15%).

Timing Your Budget

You should commit to staying on budget until you see results. The best way to accomplish this is to create an annual plan that covers your fixed costs like rent and car payment, your seasonal costs like holiday presents and vacations and your discretionary costs like eating out and buying clothes. Work all these things into a 12-month projection and follow it.

If you find flaws in the plan or your cashflow changes, you can modify it. Otherwise, try to stay with it. Consider using budgeting software or apps to help you. If you discipline yourself, you’ll be surprised as debts get paid, savings grow and your needs are met.

It would be nice if you could have one magic formula or one easy trick that made it so you never had to worry about money again. If you are tired of being stressed out about money all of the time, you need to get a hold on your personal finances. There are five keys that can help you get control of your finances. Once you have started following these five steps consistently the stress about your finances should diminish.

This is because you have a clear plan that you are following.

Start with Goals

The first thing you should do is to write specific goals about what you want to do with your life and your money. Finances can affect many different areas of your life. Your goal to travel the world affects how you will plan your finances. Your goal to retire early is dependent on how well you handle your finances now. Home ownership, starting a family, moving or changing careers will all be affected by how you manage your finances. Once you have written down your goals you will need to prioritize them. This makes sure you are paying attention to the ones that are most important to you. You can also list them in the order you want to achieve them, but for a long-term goal like retirement, you should be working towards it while working on your other goals.

• Start by setting long-term goals like getting out of debt, buying a home, or retiring early. These goals can help you focus your shorter term goals.

• Prioritize your goals to help you create your plan (which is the next step).
• Set short-term goals, like following a budget, decreasing your spending, or stop using your credit cards.

Create a Plan

A plan will help you reach your goals. The plan should have multiple steps. The first part of your plan should be to get control of your budget.

You will need to create a spending plan. The second part of your plan should be to get out of debt. After you have accomplished those two things, you should decide what you want to do with your money to reach your goals. The money you free up from your debt payments can be used to reaching your goals. At this point, you should decide what priorities are the most important to you right now, as long as you are steadily working towards your long-term retirement goals, you can begin to focus on the most important goals you have set for yourself. Your goals, along with an emergency fund, will help you stop making financial decisions based on fear and help you get control of your situation.

• Your budget is key to success. It is the tool that will give you the most control of your financial future. Your budget can help you reach the rest of your plan.
• Use budgeting software or past expenses to get you a starting point for your budget.
• Take the time to focus on your budget now. If you need help, consider taking a personal finance class.

Stick to Your Budget

Your budget is one of the biggest tools that will help you succeed financially. It allows you to create a spending plan so you can focus your money in a way that will help you to reach your goals.

Even after you are out of debt you need to have a budget. It is easy to spend more than you make, and if you stop tracking your spending you can go over and run up debt really quickly. A budget lets you decide how to spend your money. Without the plan, you may spend your money on things that are not important to you, but you want in the moment, and then wonder why you are never reaching the financial milestones you want to set. If you are married you and your spouse need to work together on the budget. This will help you to achieve your goals together and prevent fights.

• Consider switching to an  envelope budgeting system that uses cash for the difficult categories.
• Also budgeting software with mobile apps so you can enter spending when you are actually shopping can help you stick to your budget.