Everyone worries about financial troubles from time to time. If you’ve found yourself wishing that you had better spending habits, take comfort in the fact that you aren’t alone. To make a change, it can be helpful to focus on smaller, more manageable solutions. Often, money troubles can seem like they are too big to tackle. But, when you observe the issue as a series of smaller tasks (or daily habits), you’re likely to have an easier time finding a path to a practical solution.
Daily Habits for Staying on Top of Your Finances
Establishing the right daily habits can help you get ahead with your finances. Consider these simple ideas and create a plan for your financial wellness.
1) Know Your Score
One of the most important numbers that dictates the course of your life is your credit score. The trouble with credit is that it doesn’t take much to damage your score, but it can take what feels like a lifetime to make even the slightest improvement to the number. Before you can go about making any financial decisions for your future, you need to know your score. Look into how you can obtain a free yearly credit report and gain a bit of insight on what you’re working with.
Whether you have a great score or one that needs a bit of work, understanding your exact number can help you know a lot about the current state of your finances. Working on your credit score will be a lifesaver when the time comes to take out a mortgage, apply for a personal loan, or invest in property.
2) Pay Your Bills
This next suggestion can also have a positive impact on your credit score. One of the easiest and most effective ways of getting in good financial standing is by paying all of your bills on time. Whether you’re a few days late or a handful of weeks behind, consistently paying after your due date can be one of the worse habits to get into.
Instead, change the habit by enrolling in auto-debit programs. Most utility companies and service providers have auto-debit options that consumers can use to make regular payments in a timely fashion each month.
While starting daily habits of paying your bills on time might be helpful in general, it also is one of the quickest ways to make a positive change with your credit score. In time, you’ll start to notice the lasting impact of making your payments as consistent as possible.
3) Track Spending Habits
Most of the time, it can be difficult to see your own spending habits unless they are laid out in front of you. To get a better feel for where your money goes each day, start tracking what you spend. Write down each time you make a payment for something, whether you’re…
- writing a check for a relative’s birthday card,
- or grabbing some milk from the grocery store…
After a few days, you’ll start to see where you’re wasting the most money. Having a firm idea of how you spend can help adjust your daily habits and stop throwing money away.
4) Treat Yourself in Moderation
In recent years, the idea of “treating yourself” has become quite popular. While there’s nothing wrong with buying what you’d like, you also need to learn how to moderate. Don’t be excessive or lavish in your spending, especially if your income doesn’t allow it.
The timeless rule that all consumers should follow is as follows:
If you have to borrow money for it, can you actually afford it?
This means putting every purchase on credit is really creating future debt for yourself which means you’ll need to work twice as hard to pay it off later.
This isn’t to say that you can’t splurge on what you’d like every so often. When you see an item you absolutely must have and you can afford to spend a bit, take advantage of the opportunity. Depriving yourself all the time can drive you crazy, just don’t go blowing all of your money on extravagant possessions every single day.
5) Don’t Buy New
Another popular way many people are saving money these days is by ditching the idea of buying something new. Whether used or slightly-worn, items of all kinds are seeing a second chance at life via:
- flea markets,
- swap meets,
- thrift stores, and
- garage sales.
You can even rent designer clothing for a fraction of the cost of buying it. Apps like Rent the Runway allow you all the luxury of a full wardrobe without the price tags. Being thrifty can introduce you to all sorts of wonderful services and money-saving ideas that you wouldn’t have considered otherwise.
Daily Habits That Impact Your Finances – When Will YOU Start?
Saving money isn’t always an easy journey. To make the most of your finances, it’s almost imperative to get into better daily habits. Consider adopting some of the suggestions provided here in order to get a fresh perspective on your current habits. It will help you see what changes you need to make to reach your financial goals.
Are you ready to start these daily habits? Which recommendation is your favorite?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.