How To Build Healthy Financial Habits

Today we will talk about the little habits that can make you better with money. It means getting better overall habits. Just like you can train yourself to get up earlier in the morning or eat better at night or whatever it may be you can also train yourself to have good money habits.

Keeping Visible Lists

Basically anytime you need to be buying something regularly,there should be a list for it and it should be well within your line of side. I am a big believer in keeping list that are physical because not only are they easier to update, they also give you a constant reminder, as supposed to like being buried in the notes application on your phone. So obviously there is like cute little grocery list notepad that you keep on your fridge and definitely get the notepad with the tear off sheets so you can take the list with you while you shop. But there are also tons of other things; for example: keeping a running list of office supplies you need and keeping a little for cleaning supplies and toiletries. This not only means fewer trips to go get random things but it also means staying ahead of what you need.

Money Journals

Every day write down the thing that made you happiest that day and how much it cost. This will help you notice what are the things which you regularly spend money on but never see written down in your journal which lets you know really quickly what items are not really bringing a lot of value.This way you can create budget without feeling deprived because in this way you will know you can cut things out.

Doing a regular cash only cleanse

It is such an easy way to kind of set the reset button on what you deem necessary to spend on. Even if you just do one week every other month where you take out a specific amount of cash and can only spend what you have in cash, you realize very quickly what is not worth it. Not only does it feel a lot more visceral to putting down cash instead of a card, it also gives you a much tighter frame to work in. Everyone’s biggest challenge with money is learning how to put the biggest distance between what you can spend and what you do spend. Artificially reducing the amount of money you have to work with each month is a great way to get that done.

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Sharing your money goals

When you set a money goal, say it out loud. Whether this means just telling your friends and family about a money goal or even sharing it online in the community of your choice. The point is sharing with other people helps keep you accountable and helps other to be a part of the solution. Not only do you feel like it is way more necessary to reach a goal once other people are following along too.Once you have kind of gotten over that taboo about sharing like let’s say spending restrictions for certain time, it’s much easier to talk about it openly as it comes up. You do not need to feel bad about declining an expensive night out, if you have already explained why you are doing it.

Automating most dangerous spending

There are certain types of investments that you know are likely to trigger you into bad, impulse decisions such as clothes shopping or going to the grocery store hungry. Automate those things as much as possible and get them done online. For example if you set up automated deliveries of things like non perishable food items, cleaning supplies, toiletries etc, you can easily reduce your grocery shopping once or twice a month and be sure to do it in the right frame of mind and with a perfect list or if you know that things like wandering through a mail tend to bring on your worst impulse shopping habits, you can do things like look at your professional and casual wardrobe. Online shopping has many advantages, see where regular items might need to be replaced and order them online. You do not need a big trip to the mall every time you need a white button down shirt or a basic pair of jeans as long as you know your size number.

Regular bank account check ups

Make it your routine to check your bank account to make sure nothing weird is happening which is much easier to do by the way if you have application in your mobile phone. Go through your account with a fine tooth comb check up. This will help you analyze your spending habits. Make it a part of your self-care routine

Making a visual budget calendar

Take the spending that you budgeted out for yourself for the month and break it down in a very visual and tactile way so I recommend one of those chalk boards calendars that is broken down into the days of the month and physically writing down the different ways you are spending money through out the month now. Not only you write down the social outings but also your meal plans throughout the week. Put the dollar amount as well next to all the plans for the month. It will not only help you keep organized but it also reminds you of what really is and is not worth it.

Avoid Advertisements

This is kind of passive tip to save money but try to avoid general advertising. This will reduce your likelihood of impulse buying something like that extra pack of gum at the cashier stand or that awesome cup of coffee that does not tip over that you think you need.

Price Into Hours

Try to turn your prices into hours and what I mean is this is to psychologically trick yourself into converting that $50 shirt and to how many hours you would have to work for. You would have to go to work for five hours just for that shirt and ask yourself is it worth it? This goes into the value investing and will help your brain understand the value of what you are buying and the opportunity cost of what you are giving.

Increase Income Instead Of Reducing Expenses

If you are saving money because you want to buy something,the best advice I can give you is to focus more on how you can increase your income. Simply focusing on how you can make more money will help you focus more on reducing your expenses. So have multiple streams of income. Now this is really technical; well it is like raining money when you get different sources of income. It feels just amazing. Can you think of having $1 thrown at you on the left side, one dollar from the right side, one dollar falling from the sky,looking down and seeing five dollar. That is what it is to have multiple sources of income money coming at you from all different angles and it is just if one breaks down, if I get fired from one job! BOOM! I got other places to rely on and that is something worth doing.

Do Not Diversify

Probably you must have heard that do not diversify your portfolio and you will get rich. So do not diversify your portfolio until they are millionaire. Do not put all eggs in one basket and keep an eye on all the baskets to make sure none of the egg is broken. So do not diversify your need and focus on many things. Instead, put all your energy and focus on one thing.

Sort Your Debts From Highest Interest Rates To The Lowest

You need to focus on paying off your debts with the highest interest rate. It can be tempting that you want to clear the smallest amount first but in reality you will pay more in the long term, if you do not focus on getting rid of that high interest debt.

Remember to always keep an eye on the sales as well. Keep looking for the seasonal sales and avail discount coupons and vouchers that helps you to remain in your budget throughout.

There is a misconception that to be good with money, you need to have a lot of it. It is not true at all. What you need to be good with money is everyday management; whether you are planning for yourself or planning for your family. Many people are usually bad with money management. They feel financial stuff so big and so scary. I hope these tips will help you in developing good financial habits. But always remember! There is different formula for everyone because everyone spends differently but there are simple steps that you can take to make sure that every dollar you spend has the highest value possible and that means planning ahead.

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