summit-bracket2 bracket2 atm-outline location-pin-outline location-pin-filled atm-filled calendar2 bracket google-play[2] app-store summit-location-pin-lg code lock user worksheets phone print programs open pdf checkmark-form close-x close download checkmark-chart checklists blog-tools social-facebook social-google-plus social-pinterest social-twitter social-youtube ehl calendar calculators bracket22 checkmark email text-area-corner external-link success error information warning calendar-add-event auto-rates mortgage-rates home-equity new-certificates ncua summit-logo-itmoi arrow-left arrow-right checkmark2 summit-logo-white summit-bracket silhouette arrow-down arrow-up auto-rates2 blog calculators2 call ehl2 home-equity2 itmoi locate mortgage-rates2 new-certificates2 programs2 search summit-location-pin-sm tools clock


Avoid creating money traps

Trap #1:  Avoiding your savings account. Are you one of those people whose entire paycheck goes straight into your checking account? One of the problems with liquid funds is they seem to go down the drain more quickly. Avoid temptation by socking a percentage of your check into savings right away – that off-limits money will come in handy on a rainy day or when you want to make a big purchase.

Trap #2:  Buying just what the stores are trying to sell you. Ever gone to the store for a gallon of milk and walked out with a cart full of things you didn’t know you needed? Some of us can’t resist sales and “good deals” that stores tempt us with at every aisle—but saving money on things you don’t need can empty your wallet in a hurry. 

Trap #3: Paying off the wrong debt first. You’re doing the right thing—using some extra cash to pay down debts—but all debts aren’t created equal. Say you have three store credit cards with interest rates of 12%, 15%, and 18%. Instead of splitting payments equally, pay off the highest-interest debt first for maximum big-picture savings.