logo

 5 Habits to improve your financial health

By Real People at 12 Nov 2018, 08:42 AM

 

Taking steps to achieve financial health is just like setting a goal to lose weight – it doesn't happen overnight. Setting yourself up for financial success requires time, dedication and maintenance.

Track and Manage Expenses

Tracking your expenses will act as a basis for nurturing other financial habits. Often, we lose sight of our spending simply because we fail to track the money going out every single day. To avoid over-spending simply set up a spreadsheet or just buy a small notepad that you can write in every single day. You can then categorize your expenses and prioritize on your future spending.

Prioritize Debt Payment

One of the biggest deterrents, financially speaking, is the overwhelming debt that most people face. When you are faced with enormous debt, it’s hard to concentrate on anything else. It’s also easier to avoid looking at bank account statements. But, the sooner that debt is repaid, the better you’ll feel. And, like everything else, debt repayment builds momentum. Once you get in the habit of paying off debt, your overall spending will fall in line with it.

Maintain an Emergency Fund

An emergency fund is just what the name implies: money that has been set aside for emergency purposes. The fund is intended to help you pay for things that wouldn’t normally be included in your personal budget: unexpected expenses such as car repairs.

Read more

Reading books and blogs about personal finances, wealth creation and investing will have a huge impact on your finances and your financial health. With more knowledge, you will almost certainly change how you do things, reconsider decisions made, or simply make better decisions. You are never too old to learn and you will never know everything.

Monitor your accounts

A great habit to get into is keeping track of all your accounts. From investments to store cards, bank accounts and everything else. Knowing the balances in all your accounts and investments may give you better insight into your overall finances. Having the information may spark off some ideas or give you the motivation to do certain things.

Thereby, by embedding these habits in your life you can be assured of being more diligent and rational about your financial decisions.

 

Source: Take charge of your money