As people become more comfortable with electronic banking, it is easy to see why they favor the mouse to the pen. In addition to convenience, banking online can help you quickly detect fraudulent activity. Following are ten reasons Anna Kozner, marketing coordinator and online banking fan, loves online banking and billing.

1. No late fees with automatic bill pay.

2. Reduced paper waste from bills, statements, and checks.

3. No need for checks = no reorder fees for extra checks = savings on postage from sending checks.

4. It’s convenient. No need to visit your bank to request services and make updates.

5. No more waiting on the phone to pay a bill or waiting for checks to clear—you can immediately transfer funds online.

6. You can check your account balances 24 hours a day for FREE, so you stay on top of your spending.

7. You can track your expenses with your bank’s online spending tracker.

8. You can manage your money from your phone.

9. It’s organized. You can control all your bills in one place (your computer).

10. It’s all free!

Instead of automatically choosing to work with the bank on the corner, shop around to see which bank is right for you. Each will have their own products and services. For example, to help you better manage your accounts, some banks will even send reminder emails when a payment is due or your balance is low. And while all of Anna’s online services are free, you will want to check the terms of your online banking service. For example, some banks charge for online bill pay. Finally, take the time to figure out whether you want a large national bank, a small local bank, or an online bank. Don’t forget, the bank you’re looking for may be a credit union.

I took a peach pie over to my friend’s house last weekend. This seemingly mundane activity sparked quite an interesting conversation:

Friend: I have been meaning to make a pie for years.

Me:       Really, years?

Friend: Well, summers go by really fast.

Me:       Pie doesn’t really have a season.

Friend: Maybe I’ll make a pie next year.

Me:       You can make a pie in like an hour!

Friend: I don’t have a pie server.

Me:       Well in that case, you’d better wait.

On the way home, I was thinking that if my friend can come up with multiple excuses not to make a pie, imagine how many excuses there must be to avoid money management. You are probably thinking that my friend’s excuses not to make a pie are lame, right? Well, I think most excuses are. For example, I asked a few people why they aren’t doing what they know they should be doing with their money. Here’s what they said:

-Times are tough right now.
-I need more time to research my options.
-I’m looking for a new job.
-I think I’m doing okay.
-I haven’t had a chance to go in and update the software.

Pretty lame, right? What’s your excuse?

While I am all for helping the economy and the environment, the awesome thing about a clunker is that is (hopefully!) paid for in full. If you are one of the more than six hundred thousand who got cash for your clunker, you are the proud owner of a new car… and possibly some new debt.

Let’s run some rough numbers. The popular Honda Civic costs around $21,000. If you qualified for the full $4,500 CARS credit for your clunker, that leaves you with $16,500 owed.

Loan amount:         $16,500
Interest rate:                   9%
Loan term:          48 months
Monthly payment:   $410.60

The fact that many people were in a rush to beat the program’s deadline concerns me. A National Automobile Dealers Association economist was interviewed for a recent Newsweek article saying that he believes that “as many as 40 percent of the cars purchased under Cash for Clunkers were bought by people who would not have bought a new car in this calendar year.”

Adding more than $400 to your monthly obligations is not something that most people can do without a lot of planning. To make matters worse, according to Insurance News Net, insurance costs for some new-car buyers could be minimal; for others, it could be $500 or more a year.

If you find yourself suddenly facing a dramatic increase in your monthly credit obligations—for any reason—you will likely have to adjust your spending in other areas to compensate (giving a car back is not a realistic option). Thankfully, there are several budget areas where you can make quick cuts. Check out previous blog posts for quick ways to reduce your expenses on items like:

-Food
-Energy
-Childcare
-Pet care
-Travel
-Entertainment
-Gifts

Plus, this great post from the Bargain Babe on 13 ways to reduce your spending.