Stressed About Your Bank Account Balance? 3 Moves That Could Help You Breathe Easier

Roughly three in five Americans report being stressed about their finances, according to a recent Clever survey. This isn't surprising given the high inflation we've all been dealing with over the last year. Many of us are finding it more difficult to afford our bills, especially those of us who are carrying debt.

Ultimately, everyone has to find their own way to manage this. But here are a few moves you may want to consider if you haven't done them already.

1. Switch to online bank accounts

Making the switch from a brick-and-mortar bank account to an online bank account could help you in two ways. First, it could help you ditch common bank fees, like monthly maintenance fees. Many online banks don't have them, but they're still fairly common with traditional banks. If you find yourself frequently running into these, switching banks could help you take one bill off your plate.

Second, online bank accounts typically offer much higher interest rates, especially on savings accounts. Right now, the top savings accounts are offering annual percentage yields (APYs) close to 4.00%. That could potentially earn you tens or even hundreds of dollars annually, depending on your balance.

Our Picks for the Best High-Yield Savings Accounts of 2024

American Express® High Yield Savings APY 4.10% Rate info 4.10% annual percentage yield as of October 10, 2024 Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.10% Rate info 4.10% annual percentage yield as of October 10, 2024	Min. to earn $0
Capital One 360 Performance Savings APY 4.10% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Sept. 27, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	APY 4.10% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Sept. 27, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
CIT Platinum Savings APY 4.70% APY for balances of $5,000 or more Rate info 4.70% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000 for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	APY 4.70% APY for balances of $5,000 or more Rate info 4.70% APY for balances of $5,000 or more; otherwise, 0.25% APY	Min. to earn $100 to open account, $5,000 for max APY

But online banks may not be the best fit for everyone. If you aren't especially tech-savvy, you may not enjoy managing your money from a computer or mobile app. And if you frequently need to deposit cash, you may prefer to hold onto a brick-and-mortar checking account, as it's often more difficult to make these deposits with online banks.

2. Create a budget

Budgeting is often a joyless activity, but it can go a long way toward increasing your awareness of where your money goes. It can also help you prioritize your financial goals and identify areas of overspending, allowing you to cut back and free up extra cash.

In the past, budgeting used to mean pen, paper, and a lot of math. Then we graduated to spreadsheets. But nowadays, there are a bunch of budgeting apps that can take care of most of the hard work for you. All you have to do is enter your purchases, and the apps will keep track of how much you've spent in various categories. You can also see your spending from previous months at a glance.

Explore a few options and see which works best for you, if you don't already have a budget. Don't be afraid to adjust your spending limits in various categories over the first few months. It can take some time to figure out a plan you can stick to.

3. Try to negotiate some of your bills

Many people don't realize it, but it's sometimes possible to reduce what you owe just by negotiating your bills with creditors and service providers. This works better with some things than others. Many successfully negotiate their TV or cellphone bills, and some may even be able to secure a lower interest rate on their credit card debts if they've been a longtime customer. Hospitals and utility companies may also have financial assistance services.

Other types of creditors may be less willing to negotiate, especially if you agreed to pay a specific rate in the past. But it never hurts to ask. If you're struggling with your payments, reach out to explain your situation and see if there's an alternate payment option available to you.

Always remember to be kind. Your lender or service provider isn't obligated to pull any strings for you just because you ask, and they'll probably be more willing to help if you're polite. You can highlight your loyalty to the company if you've worked with them for many years. And if you've historically made your payments on time, that's another point in your favor.

The steps above may not take away all your financial stress, but they could get you moving in the right direction. See if you can brainstorm any additional moves to either bring more money in each month or reduce how much you have going out. That way, you can bring your finances into a more comfortable balance.