Although you will often hear that money is not everything and one’s life shouldn’t revolve around money, yet at the same time it is also important to realize the fact that we live in an age which is ruled by money. With this in mind, it is of utmost importance that you know how to spend and also save your dollars in a wise manner so that you can live comfortably and save time for your near future.
While it is true that New Year resolutions are made to be broken, this year, let’s approach the New Year in a different way. Though we have crossed past 3 months of 2018 and we’re all set to step into April, let’s take a retrospective glance at the money mistakes we’ve made in the previous year and the good money habits that we can adopt this year.
Habit #1: Make sure your balances are checked daily
One of the primary reasons behind falling into monetary trouble is that we keep ignoring and avoiding things. Whenever money issues get stressful, we tend to take resort to avoidance. The ultimate fact is that you need to face it, whatever may be the situation. You can’t do without taking a look at it and you won’t be able to fix issues if you’re not aware of what is happening to your personal finances.
Habit #2: Lead a life within your means
If you want to develop good money habits, you require living within your means and for that, you have to know how much money you’re allowed to spend in one month. If you are one among those who love to live life to the fullest during the beginning of the month without even caring about what will happen towards the end, you’re in for some trouble. Make sure you are not such a person from a young age. Learn how you can live within your means.
Habit #3: Budgeting is a must
The list of good money habits wouldn’t ever be complete without adding budgeting to the list. You have to get a control over what is coming in and what is going out. Unless you know such details, you won’t know where you can cut down in case there is any hope for a brighter financial future. You may use certain financial apps like Mint to follow a budget.
Habit #4: Leave back your cards at home
Once you start practicing this habit, you will be rather surprised to see how much money you could just save by spending cash which you have in your pocket. Don’t go for the ‘spend-now-pay-later’ mode as this will lead to high-interest debt for which you may have to take out installment loans. This way you can save on those items which you don’t buy and thereafter you could save on the interest rates.
Habit #5: Automate accounts
Make sure you set your credit card and bill payments to come from your bank account automatically. Set up automatic transfers from the checking account to your savings account so that you could save money even when you’re not planning to save. Automating everything will make it less likely for you to forget about saving.
Therefore, now that you know the good money habits, start following them as soon as possible so that you can stay on top of your financial health.