7 Good Financial Habits You Should Develop
Good financial habits are extremely important to a successful modern life.
Whether you live your life steeped in debt, or not, will be determined by your buying and spending habits. People do not usually think about habits when it comes to finances. We develop good habits for everyday life to stay healthy and safe. Likewise, we must develop good habits to ensure our personal economic security, too. Read ahead to find out several good financial habits everyone should develop to get through life debt free:
1. Shop with a List
Impulse buying is one of the worst financial habits many people succumb to. Buying things on the spot without thinking about your budget can lead to lifelong debts. To counter this horrible habit, try shopping with a list. If you go to the supermarket and end up browsing the aisles for things to buy, you most certainly will waste money on things you don't actually need.
Therefore, before you leave the house, make a list of everything you need for that week or month. When you are at the store, put in your cart only the things on this list. You will save yourself a lot of money in the process, and it will also be easier for you to control your impulsive buys in the long run.
2. Note Down Personal Expenses
Dieters are advised to write down everything they eat to cut back on calories. Likewise, you should note down all your personal expenses to limit potentially excessive spending. Once you write down how much money it costs you each month for groceries, medicine, entertainment or travelling, it will be easier for you to see where you may be overspending. On the long run, this habit will help you budget properly.
3. Pay Bills Early in the Month
Learn to settle your bills early in the month as soon as you receive the paycheck. As the month progresses, the expenses add up, and many people end up short of cash to pay the electricity bill or the mortgage bill. This results in borrowing money and accruing late payment surcharges. Therefore, don't wait until the last moment to pay your bills.
Don't fool yourself into thinking that you will be able to save enough money to pay the bills. Instead, pay all that is due at the start of the month and budget your personal expenses with the remainder.
4. Save Each Month
Regardless of how many loans you have to pay back, you must save a portion of your funds each month for financial emergencies. Make it a habit to save. It doesn't matter that you only have a measly ten dollars to save; the important thing is to save. Save early in the month before you spend your paycheck on grocery runs.
5. Get Overdraft Protection for Your Accounts
Do you often find yourself with minus figures in your bank account balance? Then it's time to get overdraft protection for your credit and checking accounts. Overdrafting costs a lot of money in interest. You can avoid hefty overdraft charges forever simply by calling the bank. You can also log into your e-banking account and check the box that says "overdraft protection".
6. Schedule Shopping Trips
Frequent trips to the supermarket are the prime reason that you may find yourself nearly broke at the end of each month. Shopping trips encourage unnecessary and impulsive buys. Therefore, it's important to plan shopping trips each month and stick to a timetable. If you shop online, plan these also.
Say, you need new shoes. Add shoes to your shopping list, and when the time comes to go shopping for the month, you can Google for deals on shoes, but not before. Stop casually browsing retail websites on a nightly basis. These sites highly encourage impulsive spending, and account as shopping trips.
7. Plan Purchases
Say you need a new laptop. You don't have enough money at the moment, so you end up buying a cheap secondhand product. While it may serve a temporary need, on the long run you will end up spending hundreds of dollars on repairs, replacements and updates for this cheap laptop. When you need to spend money on things that you will need for long-term use, you need to budget accordingly.
For example, if you need the roof repaired or get dental work done, these shouldn't be done on the cheap. Therefore, plan ahead to buy important items that cost considerably. Either dip into your savings, or cut back on other costs.
Consider the above suggestions carefully. Remember, good financial habits last for life and will keep you from sinking further into debt.Get Started!