Still working on a New Year’s resolution? Make 2014 a year of savings as well as the year to achieve that perfect gym body. This year is the perfect time to whip your bank account into shape, reduce debt and increase savings. Christopher McGill, CEO of East River Bank, examines the dynamic between what a consumer has coming into the household and what they can really afford. He says that one way to have that perfect bank account is to get rid of credit card debt and put more money into savings. Rather than swiping each morning for that coffee, have cash in your wallet to reduce credit card fees.
McGill suggests the law of thirds: a third for savings, a third for paying down debt and then a final third for a splurge. This technique is perfect if the holiday fiscal season brought you a raise or bonus. One last tip McGill shares is to read the fine print to avoid getting stuck paying hidden fees (like ATM charges). After this bank lesson I now know to wisely start balancing out my spending and saving strategies.
By Ashley Johnson @AshleyNJohnson3