We could all use a little more money, but it can sometimes feel just out of reach. Improving your financial habits could help you feel wealthier and leave you with some spare cash to enjoy.
Good financial habits will help you in the future. Having a good credit rating will help you when you want to buy a house or purchase a big-ticket item in the future.
To help you on your way to financial health and wellbeing, we have created our “how to” guide on improving your financial habits.
Set a budget
Calculate your incomings and outgoings for each month. Then, set a realistic budget. You could use the 50/30/20 method to divide your income.
It goes like this; 50% to cover your needs, 30% to save, and 20% for personal expenses.
Manage your spending
Once your budget it set, it is important to manage your spending. Keep track of your outgoings throughout each month with a spreadsheet.
Google sheets has a great template you can use, with formulas already in place to track spending.
Create financial goals
When you have carefully assessed all your finances, you can create financial goals. You could set a six-month savings goal to keep you on track.
Being realistic and giving yourself achievable goals will help you to build good financial habits.
Establish an emergency fund
Life can throw a lot at us, especially when it comes to our finances. Make sure you are prepared for and set up an emergency fund.
This will help when something goes wrong with your home, car or other situation.
Pay off debts
Debts can leave your credit rating low and damage your potential financial prospects later in life.
Paying off your debts on time every month is a good habit to build. Even better if you pay off more than the minimum.
Let technology help
As with every other aspect of our lives, there are apps available to help you stay on track with your financial habits.
Do some research on some apps and find the one that works best for you and your life.
Remember, building any kind of habit is hard. Especially a good habit. Yet building good financial habits is vital for your future.
Getting you financial life in order will set you up well whatever may happen, so build financial habits now and reap the rewards later.