I have been tasked with writing brief financial education articles for my 9-5 job’s monthly newsletter.
Here’s my latest article highlighting some actionable and easy to do tips to get started with your journey towards financial freedom.
Want to boost your credit score, and make paying bills easier at the same time?
- Open a checking account for bills at the same bank/credit union that you currently use. DO NOT get a debit card for this account.
- Automate a transfer from your current checking account (where you deposit your paycheck) to your new bills account each pay period. (Tip: Paid biweekly? Add up your bills for the month, multiply it by 12, and divide that by 26. The figure on your calculator is how much your transfer should be)
- Automate all of your bill payments out of your bill account.
I know, there is some weird psychological barrier with putting your bills on auto-pay, but remember that you always pay your mortgage/rent, car payment, and utilities each month… so why wouldn’t you make this routine as simple as possible?
As a bonus, 35% of your credit score is made up of your payment history, so paying on-time every month is one of the biggest things you can do to keep your score high and/or rebuild spotty credit.
Pro Tip: You can use the same automated bill concept to save for vacations, holidays, major purchases, etc… throughout the year. Simply open a new savings and automate a transfer!