Our money habits have a profound effect when it comes to building wealth and getting wealthy. They literally control – sometimes unconsciously, how we operate each and every day.
If you can improve your money habits you will improve your standard of living and spend money on things that are more important to you and to your goals. Below are six money habits that will change your life.
DRAWING A MONTHLY BUDGET
Budgeting is a game changer; it allows you to be resourceful.
Having good money habits is a learning curve and a lot of it is centered around planning. Planning how you spend your money will never go out of style. A good old budget with details of your monthly expenditure and a specific figure will save you.
Remember to keep it simple, to make it too complicated so that it’s easy for you to track. Having a daily, weekly or monthly spending limit will also aid your self-control with money. What are you waiting for, Budget for next month already!
TRACKING YOUR EXPENSES
There a ton of apps out there to help you track your spending easily. Some of them are Editor’s choice, mint and expensify.
Tracking your expense helps you stay in control; it also gives you a helicopter view of your spending pattern and the expense that takes most of your money.
This will help you know what expense to reduce and then provide insight in channeling your resources to more important areas of your life.
LENDING MONEY TO FRIENDS AND FAMILY.
Without a doubt your friends and family are important to you. But if you lend money every time you are asked you will end up with no money and a ton of debt.
It fools hardy to lend money to somebody who has no means of paying back. Here’s where credit worthiness is important, drawing the line on borrowing limit if you can’t help it or simply saying no.
AVOID SALES SLASH
You know them, “buy two get one free”. The thing about sales slash it is that you end up spending more money than you think.
It creates an illusion of a good deal but you will most likely end up not using them and then eventually you end up decluttering it all.
Except you are saving up and waiting on a time when the item you want will be sold at a much lower price avoid sales slash to stay within your budget.
Remember it’s all about spending you hard earned money more intentionally.
KEEPING YOUR SAVINGS AND SPENDING ACCOUNT SEPARATE
If you put all your monies in one account, it creates an illusion that you have more money than you actually have. But separating your savings or investment pool from your spending pool will help you spend your money with discretion.
Remember, new habits take time to form and you can’t undo all your bad money habits overtime give yourself a “grace period” and an opportunity to grow into it.