INDIANAPOLIS — Some of the best principles for staying out of debt and growing wealth come from just a few simple habits.
Cherie Lowe, the Queen of Free, shared her five simple money strategies this week on 13Sunrise and in her blog.
First, move extra money out of your checking account before you spend it, because, despite your best intentions, you WILL spend it. Move a paycheck bonus, unexpected windfall, or any cash in excess of your budget into savings as soon as you can. You can always transfer the money back when the car needs repairs.
Schedule your bill payments with autopay, if you can, to avoid late fees. If your utility or creditor allows it, try to schedule a regular monthly payment on a set day to align with the arrival of your paycheck.
Save a percentage of every paycheck. In her blog, Cherie explains how to take out the same percentages from each paycheck, gift or even garage sale proceeds for retirement, charity, a college fund, holiday spending, vacation or emergency repairs for your house and vehicles. Even a few dollars at a time start to add up if you stick to your plan.
When you come in under budget on one line for the month, "Even if it was $2.81 on the light bill or $0.75 on the grocery budget," Cherie says, add that excess cash to one of the funds above or funnel it to pay down a larger debt.
Finally, avoid the urge to hit the "buy" button. Sleep on a purchase before you make it. "If it’s not a true need," Cherie says, "sit with your decision for at least 24 hours to make sure you really want the item."
Watch Cherie's segment with Jalea Brooks from 13Sunrise in the video player.