Like any other habits money habits define your lifestyle whether you want to be rich, poor or being financially independent. Here are some good money habits that will help you reach your financial goals and will keep you financially healthy.
- Track Every Expense: Start off by tracking every expense/ purchase you make for a whole month, this will help you realize how much you spend in a given month and more specifically where you are spending more. You might be surprised to learn how many unwanted subscriptions or auto purchases you are making.
- Budget Your Spending: Once you track all your spending create a budget that suits your needs, you can cut on subscriptions you don’t need and increase spending on what matters to you most on buying courses or even spending more on something which is valuable and rewarding.
- Set A Savings Goal: You might be already saving money to your account, but it will help you more if you have a goal set for what you want to save for. Like to purchase a new car or for a house down payment. Setting a goal will make you conscious and accelerate savings.
- Know What You Want To Buy: Knowing what you want to buy will help you reduce buying unnecessary stuff when you go to regular grocery shopping. List down all the items you want to buy before going to grocery shops like Walmart or Costco and stick to the list when buying, this will help you save hundreds of dollars per year.
- Live Below Means: This is a common thumb rule, never spend more than you make doesn’t matter how less you make it might be hard to control but that will reward you more in the long term.
- Start Investing: Once you control your spending, the first thing you need to do is start investing. Doesn’t matter how much you make start investing, these small investments will grow and compound so fast before you realize it. You can start investing with as low as $5 with Acorns (Get $5 When you open Acorns Click Here) or RobinHood (Get a stock like AAPL When you open Robinhood Account Click Here ) or Webull (Get 2 stocks when you open Webull Account Click Here)(Robin Hood and Webull gives you 1 and 2 shares for opening an account).
- Payoff Bad Debt: Start paying off bad debt like credit cards, other personal loans. Like investments and savings bad debt also compounds and it compounds much faster than your investments.
- Shop For Insurances: If you have a car, home insurance it is wise to shop around for insurance quotes every six months, you will be surprised by how much you can save by shopping around. As an example, I used to pay $150 for car insurance and shopped around 2 times in the past year and I’m paying $60 now with the same or better coverage, You could potentially save up to $100 than what you are paying.
- Stop Impulse Purchases: Impulse purchases are the main reason you might be spending than what you are supposed to be. In the times of online shopping and targeted ads, it’s very hard to avoid impulse purchases. Avoid impulse purchases when you are shopping online or got targeted with ads to purchase something you barely needed or not needed at all. These impulse purchases could cost you thousands of dollars per year.
- Stay Healthy/Eat Healthily: Yes staying and eating healthy are also good money habits to grow. As the quote says Health Is Wealth, being healthy could save you more money when it comes to health-related expenses. Staying healthy will also help you focus more and think straight that will lead you to good decisions when it’s money-making decisions or money spending.