Set a budget and stick to it. When setting a budget, your monthly expenses shouldn’t exceed your monthly income (after taxes). As a rule of thumb, you should aim to allocate 50% of your paycheck to things you NEED (Rent, Food, Utilities etc.), 30% to things you want (Shopping, Travel, etc.) and 20% to savings (savings or retirement accounts).
Pay bills on time. Missed payments can hurt your credit history for up to seven years. A record of missed payments can affect your ability to get loans, increase the interest rates you pay and hurt your ability to rent an apartment or purchase a car or home. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills and be sure to track your expenses.
Avoid racking up too much debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.
Plan for retirement. It is never too early to start saving for retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Consider doing automatic retirement contributions so you don’t have to think about it.
Prepare for emergencies. Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Start saving immediately, no matter how small the amount.
Get free help from your bank. Maspeth Federal Savings offers several free financial calculators to help you budget correctly. You can also take advantage of our online and mobile banking so that you can quickly and easily view your accounts and manage them on the go. And of course, our staff is always there for you with any questions you may have about your finances. Feel free to stop in or call any of our branch locations.