Reinforce good money habits

Are you the kind of person who gets all worked up when it comes to your finances? Well you really don’t need to if you are taking care to maintain healthy money habits. As we know, when it comes to personal finance, every decision we make, reinforces a financial habit. So, the question really is, are you reinforcing good money habits, or bad money habits?

Lets look at some of the good money habits to improve your financial situation.

Simple customized easy to follow money plan

If you’re into personal finance, it’s easy to geek out on all the apps, graphs, and financial tools available, and it’s also easy for our finances to get too complicated with tons of budget categories, subcategories, and the like. Take a more minimalist approach and sticking to a game plan (budget) might be much easier.

Ditch bad habits

Habits start the very first time you make a choice, whether it’s charging something to your credit card or deciding to stay in rather than dine out. Some habits can also be addictive, but if you know the psychology behind what drives our habits—our need for variety, for example, and feeling significant—we can turn away from bad habits and put more focus on new ones we want to develop.

Prioritize Credit Card Debts

Paying off this debt is one of the top financial goals for many. While having credit cards is important for establishing good credit, high balances can easily sneak up on you if you’re not closely monitoring your spending.

There are many ways to pay down your credit cards, one of which is to pay off one card at a time, starting with the one with the lowest balance. This gives you a sense of accomplishment, especially if you can pay it off quickly, which motivates you to keep going.

Alternatively, most financial experts will tell you to pay off your credit card with the highest interest first—which is only costing you more money with each day.

Saving for the future

You’re saving for your future expenses and retirement. Once the bills are paid, the emergency account funded, and debt paid down, it’s time to start saving for future expenses like car repairs, travel, and retirement. This is when you start to see the real gains and maybe even feel like you might just know a thing or two about this money stuff after all.

You Have a Game Plan

Having a plan is how I help my financial coaching clients get ahead. With every cent coming in, is given a job and its all automated, you are certainly ahead of your game and enjoying the journey towards your financial independence.

Margaret Mekaat

Margaret Mekaat

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