Staying on the right track with how we handle our money is important to our financial health. Our motivation to improve our finances is what gets us started on the right track, but it’s our habits…good money habits, that will keep us there. As we know, habits can be good or bad and depending on which habits they are will determine our results in any area of our life. So of course, no surprise here, the same holds true for our finances. If we don’t have good money habits, we need to instill them by coming up with a plan and REPEATEDLY following through with that plan in the small steps that we take. Our money habits will be formed and the results we receive will all be based on what we repeatedly do with regards to our money.
One of the most basic, fundamental things we can do is to conserve money. By consistently following a few money saving tips we’ll see a radical rise in the amount of cash we save, which can be used toward paying down debt, saving for emergency funds, saving for that vacation or for investing, depending on where we are in our journey to financial freedom. Preparing a personal spending budget at the start of the week or month and staying on top of it by reviewing it on a consistent, regular basis to make sure that we don’t budge from it, regardless of how much we want a specific bag or a specific sofa for the living room. Saving money and budgeting does not imply that we dismiss our wants, it only means we plan for them over time for which our budget will allow. This will also prevent credit card use by spending cash that we have instead of spending on credit, which could have the potential of putting us more into debt. At any time, we go shopping we should maintain a list to prevent impulsive purchases as much as possible. If possible, purchase items in bulk to get discounts. Also, be open to purchasing used items which we can find that are almost unused and seem just like new. Manage our entertainment spending budget by dining out less. Rather than spending on movie tickets and expensive movie snacks, have a fun movie night at home by renting a movie and having microwave popcorn.
These are just some tips and ideas to consider when it comes to planning and instilling good money habits, but those money habits don’t stop at saving and spending, good habits also play a role when it comes to investing too. The steps that we take will vary for each of us, but it’s the principle of forming and keeping good habits that is the key factor. It’s also important to remember that once we motivate ourselves to get on the right track and we form those good habits which keep us there, it’s the constant, consistent, day in and day out of putting those good habits into use so that we don’t get off track. Don’t be fooled or discouraged by the seemingly small steps of good money habits, because done consistently over time, those small steps will yield the benefits for a lifetime of financial well-being.
Before you go, I want to invite you to join my FREE email list community. By signing up today, you’ll get notifications of my latest posts. Plus, access to my FREE Resources Library. Click Here to sign up!
