What are some useful money habits you can practice?
- Plan Your Shopping
- Set Money Goals
- Keep Track of Your Expenditures
- Settle Your Debts
Are you living paycheck to paycheck? Do you always buy the newest smartphone as soon as it’s available? If the answer to both of these questions is “yes” then you may need to start forming good money habits for your everyday life. Good financing is all about considering the future and making decisions based on that. It’s never too late for you to start. Read on to find out how.
Plan Your Shopping
Before you go grocery shopping, it’s important to plan out the things you’re going to buy. A list can easily help you estimate how much money you’ll spend during a short grocery run. More than that, it could also help you avoid making unnecessary purchases.
Start off by listing all the items that you’re running short of. This can include rice, vegetables, poultry, or meat. These are the items that you’ll be prioritizing during your run. If possible, make an estimate of how much you’ll spend for each so that you’ll have an idea of the total cost.
When you plan your shopping, you’re eliminating impulse purchases. Another good tip for you to minimize these instances is to think it over. Set aside at least three days to think about whether you really need to buy that object. This helps you make more sound financial decisions.
Set Money Goals
Setting both long-term and short-term money goals is another habit you should practice when it comes to your finances. Without a financial goal, you run the risk of simply spending your money on things you don’t really need. Even if you’re not saving up for something, it’s still important to allocate an untouched amount for your savings.
Short-term goals may look like: Not spending at least Php 2,000 from your paycheck. For your daily expenses, you can also leave out an amount of your choice that you won’t be spending.
Longer-term goals require a lot more planning. Make it a point to follow a monthly budget to make sure that you don’t go over your expenses.
Keep Track of Your Expenditures
It can be difficult to remember how much of your money you spend on a particular good or service. Simply trying to remember them all may not really be practical — there’s a good chance that you won’t be remembering the correct figures.
You can keep track of your expenses in different ways. For manual methods, keep a notebook that you’ll devote to solely logging your monthly, weekly, or even daily expenses.
If you need something more convenient, there are tons of budgeting apps that you could download on your smartphone. Many apps come with a reminder so that you won’t forget to log your expenses. They’re also categorized according to your preferences, helping you to better organize your money.
Settle Your Debts
In your lifetime, you would’ve likely borrowed money from someone else — whether it’s for an emergency or just for miscellaneous purposes. As much as possible, you don’t want to put off paying your debts. In fact, they should be prioritized and paid off as soon as you’re able.
If you owe a family member some money, make sure that you pay them the first chance that you get — the same goes for any credit card transactions that you may have. If you owe a lot of money to different people, start small. Pay dues which are feasible for you at the moment. By starting small, you’re allowing yourself to not feel overwhelmed. This is also a good way of preventing your total debt from piling up.
In this guide, you’ve learned some valuable money habits for your everyday life. When it comes to handling any financial-related matter, the best piece of advice is to start small.
The idea is to hit small, short-term goals in order to help you to move towards longer-term goals. Simple activities like planning your shopping, keeping track of your expenses, budgeting, and paying off your debts can already go a long way to help you manage your finances better.