Last week, we gave you six habits to adopt for healthy finances. This week, we want to give you some more habits to consider incorporating into your life to strengthen your financial situation. Adopting just a few of these good habits could lead to a better financial future overall.
- Set up Automatic Savings
If you have not set up automatic deposits to your savings, you should do so. Putting money in savings is crucial. To avoid having it slip your mind, opt to have it done automatically.
- Organize Financial Records
Knowing where all of your important financial records are is important. You don’t want to be scrambling around when you need them for something. Keeping them organized will help save you frustration in the future.
- Save More Than 10%
Putting 10% of your paycheck into savings is a rule of thumb for many people. Think about saving more than just 10% from your paychecks if you are able to. This gives you a little more cushion financially and can help you reach your goals quicker.
- Record Everything you Buy
If you struggle with impulsive purchases, consider taking a week or so to do a financial diary. Write down all of your purchases day by day. Writing down every single item you purchase in a day will make you re-think what you should and shouldn’t be spending your money on. Even though your bank account keeps track of transactions, making an itemized list is more likely to make an impact.
- Make a List and Stick to it
Take the time to think of what you need from the store and do not stray from that list while shopping. Impulse spending is much more likely to happen when you do not shop with a list.
- Read a Financial Book
Many experts in the financial field have written books full of guidance on how to be smart with your money. Reading one of the many available financial advice books in your spare time can prove to be very beneficial. Author Dave Ramsey is a popular financial radio host and is also considered America’s trusted voice on money. His 2003 book, Total Money Makeover: A Proven Plan for Financial Fitness, is a New York Times Best Seller.
Keep in mind these are not always a good fit for everyone. Assess your own financial situation and see which could potentially benefit you. If you need guidance, consult your loan officer or financial planner before making any changes.