Financial Basics, Some ABC's

January 10, 2011 updated September 31, 2014

Financial Advice, The Basics, A.

A. Always leave your self some financial padding in your checking / debit account.

  • Today's banks are not your grandparents or parents banks. In 2014, they are mainly in business to make money.
  • With the banking bailout of 2010, came proof that these financial institutions are not there to take care of the average depositor.
  • Today a customer pays more fees, deposits by customers have longer and inconvinient holds, so debits can go through first are just one of the ways banks make a 300% profit on insufficient funds fees.
  • Losing a lot of money to bank charges in a short time has taught us that it is wise to always keep at least $20.00 in each account for padding. If all you have is a debit card, ATM, savings, or checking account try to keep at least $20.00 in there at all times.
  • Pretend the $20.00 is not there at all. For-get-about-it.
  • The padding is your own personal insurance that unexpected fees levied, or delayed deposits will not wipe out your funds.

Just this one simple building block of Basic Financial Advice,

  • This will save you a lot of money over the years.


A. Keep a Padding of Money in Your Account

Keep track of your balances. Remember all of your transactions. Keep a $20 Padding in each account.
Keep track of your balances. Remember all of your transactions. Keep a $20 Padding in each account. | Source

Financial Advice, The Basics, B.

B. Beware of offers for things that are not really wanted or needed.

  • Because an item is on clearance, or deeply discounted, in close-out or buy one get one, does not necessarily a healthy budgeting move.
  • Be aware of falling into temptation by believing the storytellers in the glossy and exciting ads you receive weekly in the mail, and daily on the internet. Advertisers and marketers spend billions to trick a consumer into buying products. High color and glossy ads, show only a dream.
  • Buy only what you need, really want, and can use. If you do not have a place for it, or cannot use it today, you may not need to waste today's money on it. Put it back, or decline to purchase it at the checkout.
  • Buy what you can pay for at the time.
  • If it is necessary to put an item on a credit card, because a shopper does not have the money, stop to consider how you will eventually pay for it.
  • Paying the minimum monthly payment on a Credit Card will keep you in debt forever. Not having it paid off means, this item you are willing to go into debt over, will never be yours.

b. Be Vigilant in Rewarding Yourself

Be vigilant in rewarding yourself. Your withholding may not be the best way to recognize financial health.
Be vigilant in rewarding yourself. Your withholding may not be the best way to recognize financial health. | Source

Financial Advice, The Basics, C.

C. Clear out the old, clear a space for the new:

  • Closets, cupboards and cartons can become full and running over in a very short amount of time.
  • Doing personal property inventory is a good way to check the health of your spending habits.
  • Credit is NOT EXTRA MONEY. Charge cards only benefit those who are able to pay them off each month. Not paying the balance off each billing period, causes the card user to pay someone else a very high percent, to use their own money..
  • After inventory, after locating items that have not been touched in more than three months, make a decision to use it, or pass it along.
  • Clothing, recyclables, charity items that have been there more than three months are taking up your money and peace.
  • Clean a new space for each new item. If you Must have a new item, make sure there is a specific place for it to go today.
  • Make up your mind up today, what you will get rid of, donate to charity, or throw away, as a trade for space.

Financial Advice Basics, Make Your Own Plan

pennies do not seem worth the saving, but they do add up, and pennies can make or break a budget
pennies do not seem worth the saving, but they do add up, and pennies can make or break a budget | Source

D, E, F, G and Beyond

There are basic principles to budgeting and finance. This is not a topic people often discuss in a relationship or family. It is often a trickier subject to discuss than Sex. Humans are very connected to their finances.

If an individual, couple or family hope to have success in finance, they must openly discuss money and finance. Infidelity, and money problems are the main causes of divorce. There are so many programs available, to people, there is every possibility to traverse this rocky road.

No one is perfect, and in setting a budget or financial plan for the individual, couple or family, it is important that the budget doesn't become a terrible task master.

  1. It is important to budget Fun and Enjoyment in every person's life. This does not have to be a vacation to Disney World, it can be as simple as a standard Date Night for Mom and Dad. Camping equipment, or movie night.
  2. If the budget is not successful on the first try, it is like anything else; it takes time and practice. Do not be too hard on yourself for not making the budget, just learn from it, readjust and go on.
  3. In North America, there are many Counties, States, Cities and Parrish's who offer financial counselling free of charge or for a few dollars. Some of these programs actually will help First Time Home buyer's get down-payment assistance.

© 2011 Lori J Latimer

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Comments 18 comments

katiem2 profile image

katiem2 5 years ago from I'm outta here

You're great on financial matters!

I love your no nonsense voice and clear guidelines that are practical and solid advice for the basics of finacial planning.

It seems I've learned today that the lack of planning is the main issue leaving us blind to the reality of our financial present and future.

Well done and thank you for the great resource! :) Katie


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@Ms Katiem, thank you for being the First to Comment on this Hub. Thank you for your nice comments. Goals and planning seem to work most of the time. :0)


thougtforce profile image

thougtforce 5 years ago from Sweden

Very good and true advices! Most of us have too many things already, and with a little planning we can buy the things we really need. But it is so easy to get a credit card! Every food store have their one bonuscard that can be connected to a credit card! Very good and informative hub! voted up!


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@thoughtforce, Thank you very much. It is easy to get credit, but paying them off is a booger. I have seen the Credit Reports of people with "perfect" credit, who have been paying for the same pile of stuff for 25 years, never really owning it; paying the minimum balances, forever...the stuff is long gone, but the debt remains. Thank you for the vote and very nice comments.


MartieCoetser profile image

MartieCoetser 5 years ago from South Africa

If you can live without it, you don’t need it. Great hub, Lilly, voted UP and UP.


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@MartieCoester, Thank you for wise words.Thanks for coming by! :0)


chan0512 profile image

chan0512 5 years ago from Camarillo, CA

Great hub as always! I like this advice "Always keep a $20.00 padding in your accounts". This can save money in long run especially on checking account which has debit account. :) shared and voted


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

Thank you! Any finance Hub of mine you visit and vote up is an HOnor! Thanks.


BobbiRant profile image

BobbiRant 5 years ago from New York

If there's something I always need, it's sound financial advice. I really liked this hub about finances.


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@BobbiRant, thank you. Very kind. Thank you for your nice comments. :0)


3cardmonte 5 years ago

Excellent advice. Especially about the padding. Banks are soo sneaky like that.


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@3cardmonte, So glad you came by for a read. Nice comment. Thanks!

Indeed. They are, but it is the difference in the business or debit card user, having it rung as credit. I don't understand, but there is always a higher fee, at first, then the regular charges, end up showing.

This week, I had to get into the $20.00 padding, for gas, and coffee. The coffee was only $1.79 but because it was on a debit card, the business run it as credit. It charged $3.00 for a 1.79 purchase, which comes back off, but in that moment, there was .49 too little, causing a negative balance. They didn't charge the bank fee...


gr82bme profile image

gr82bme 5 years ago from USA

Lilly well done. I always tell my kids, do you NEED it or do you WANT it? They seem to buy what the WANT, then wonder why they have no money saved


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@gr82bme Thank you for the visit, and thanks for the comment. I too know lots of families who feel providing their families Wants, comes before and in place of basic necessities....Thank you.


okmom23 profile image

okmom23 5 years ago from Midwest, U.S.A.

Another great hub! Love the advice regarding twenty $ in your checking account, so true. Bookmarked, voted up. Thank you for sharing this article with us.


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas Author

@okmom23, Thank you very much for the read, and nice comment!


Anselome profile image

Anselome 3 years ago from Thunder Bay

Great advice! Simple and easy to remember. Don't spend what you don't have!


LillyGrillzit profile image

LillyGrillzit 3 years ago from The River Valley, Arkansas Author

Anselome, thank you for giving this a read, and taking the time to comment. Hope it helps :0)

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