5 Financial Habits To Start Now
Many of the things you do daily are simply a habit. Whether it's buying coffee on the way to work or a $10 daily lunch habit, they can burden your budget. Similar to how bad financial habits can get you into trouble, good financial habits can keep you out of trouble. Implementing good monetary routines can help you spend smarter, save properly, and reach your financial goals quicker.
Gaining control over your financial habits is all about making your money work for you. Here are five financial habits you can start right away.
1. Create a Budget
The foundation of personal finance is budgeting. If budgeting is new to you, your first step is to start writing down everything you spend money on, including that morning cup of coffee, the monthly video streaming service you use, and even those brand new shoes you just bought.
Next, you’ll want to factor in your income and see what is left over after your monthly expenses. The idea behind budgeting isn't to limit what you do with your money but to maximize it to the best of your ability. Even cutting back on the small things, like getting a take-out lunch a couple of days a week or that expensive latte every morning, can potentially save more than $100 each month.
2. Track Your Expenses
Continually track your expenses, whether by pen and paper, a computer spreadsheet, phone notes, or an app. Doing so will allow you to see exactly how much you're spending and learn the areas you could potentially cut back.
3. Create Multiple Income Streams
Creating a few streams of income can dramatically alter your financial future. You could take on a part-time job or start a side hustle to potentially earn additional income every month. This could make a substantial difference in your finances.
The important thing here is to use the additional income you make to better your finances and not use it as spending money. For example, you could use it to start a savings account, pay off debt, or create an emergency fund. It will pay off in the long run, affording you more spending power after you have paid off your debts!
4. Save 10% of the Money You Make
If possible, try saving at least 10% of your monthly income. Take these savings and split them into categories such as:
- Normal savings
- Emergency fund
- Investments
- Roth or Traditional IRA Account
If you’re unable to save 10%, start with a lower amount. As you become more comfortable, slowly increase the amount you’re saving each month.
5. Gain Knowledge Everyday
To really progress financially, you'll want to keep building your financial knowledge. Try spending a minimum of 20 minutes daily to learn more about money and ways to use it wisely. Invest time reading articles from reputable financial experts and keep up with our blog.
CAMPUS Can Help!
Creating good financial habits is simple but will require a little discipline and planning. To make the process easier, ask us about the many financial tools available to help, such as online and mobile banking for budgeting or payroll deduction to automate savings.
Our team is here to help you make the best financial decisions for your unique situation. For assistance, stop by any of our convenient service center locations, book an appointment, or call us at 800-367-6440.
By Campus USA at 4 Jan 2021, 16:08 PM