How to Develop Good Financial Habits?
Good financial habits can be learned and developed by doing them daily. Just like brushing your teeth or combing your hair every day, you do it every day because it is beneficial. Not doing it in a day would make you uncomfortable. It will make you feel like you did something wrong.
So here we teach you about making a habit of saving and other activities related to good financial management. These are the things you can do every day that will eventually become part of your routine. They say it only takes at least 18 days to form a habit. It might be worth repeating a good fiscal activity daily for 18 days, at least, to help you build great financial budgeting habits.
Here are some great financial habits you can develop every day.
It’s the mundane things that you buy every day that will surprise you if you get the total monthly expense. A $2 chewing gum a day will cost you $60 a month. It’ not that costly, but do you really need to eat gum every day? This is why you need to monitor your expenses. There might be some things you don’t actually need that are setting you back financially just because of compulsion to buy it. Again, make sure to have a daily tracking of your expenses and then assess what expenses could be avoided.
Don’t buy on impulse
Make a habit of writing down a grocery or shopping list and stick to it. It is when you don’t have a list that you often overspend. What usually happens is you get something you think you need but you actually don’t. In some cases, you get something off the shelf and ,when you get home, you realize that you still have the exact item. What a waste of money!
Take advantage of coupons and discounts
Don’t be embarrassed about using coupons in your grocery shopping. Instead, think about how much you can save when you use the coupons and what else you can buy from the amount that you saved. Grab every opportunity where you can save. Just make sure that you really need the item you are buying on discount and that you are not just buying it for the discount.
Opening your bills as soon as you get them
How many times have you missed the payment of your bill because you waited for another day or week? This is why it is advisable that you open every bill as soon as you get them. Opening and looking at it takes less than a minute. And as much as possible, once it is opened, pay for it immediately. The best way to do this is by enrolling your accounts online. This way, you’ll save time and money. Another is it is faster than going to a bank or a utility center to pay your bills. You may also link your bills with your bank account so you will enjoy automatic deductions. The advantage here is that you will not be late in your bills payment, hence, you will not get charged for late payment fees or penalties.
Set aside part of your income for retirement
This is one of the most important habits you could form. Saving for the future is something you should do now! Experts say you should set aside 10 percent of your salary for your retirement fund or plan. If you think it sounds expensive, try to save the amount daily. A piggy bank is not just for children. It is not just a symbol for savings. It is actually something you can use yourself. Calculate how much you earn in a day, get the 10 percent equivalent and put it in the piggy bank. Do this every day and at the end of the year, you can deposit the amount in a retirement account.
Don’t keep a lot of money in your wallet. This way, you won’t be tempted to buy just anything you want. Keep just one credit card. The credit card usually gives you a sense of false security that you have more money than what you actually have. You can’t spend something you don’t have so try not to have much.
Plan meal menus in advance
This is another great way to save on grocery expenses. You plan your menu around what you currently have in the fridge and pantry. This way, you will not be wasting any of the food that you currently have. If you shop first, chances are you will neglect some of the food that you already have and they might spoil or expire before you get to use them. So have a regular inspection of the fridge and pantry and try to use up everything there. Also, always keep track of the expiration dates of the food. Record them if necessary.
Keep a budget
There is a sense of seriousness in matters that are on paper. So prepare a weekly and monthly budget and try to strictly implement them. Planning is very important when it comes to saving. It essentially shows intent. But of course, it should not stop at planning. Implementation is a bigger part of the process. You need to religiously follow a budget and eventually this turns out a habit for you.
Check your car
Ideally, you should check your car every day before you leave the house. Check if you still have enough gas, if your oil is still clear and if the rest of the engine looks good. Properly maintaining a vehicle is one way of preventing unnecessary expenses.
These are simple things that you yourself can handle every day. It will take some getting used to since some of these take a little bit of time—like checking your car or preparing a grocery list or budgeting. But once you’ve developed these into habits, they will become part of your system, hence, no longer taxing.