With the new year coming up, a new year’s resolution list always pops out. What do you usually write about? What do you usually want to change in yourself? Self care aside, one should always think of new habits that can help oneself in the long run, so how about looking into maintaining good financial habits for the new year?
1. Be Mindful in Spending
Words from the wise (and rich), even the wealthiest of people are mindful of how and where they spend their money. The saying that money doesn’t buy happiness holds some sort of truth, but also holds lies. When we spend money on family and friends, there are significant returns to our well being, while spending on luxury items all the time only makes us poorer.
2. Be regularly reviewing and updating your Financial Plan
One of the best financial decisions regarding your finances is having a financial plan. But remember that while having one is good, it is not enough. You need to review and update your financial plan constantly in order to adopt changes in your own environment into your financial plan.
3. Pay your Credit Card in Full
There is an ongoing myth that it is better that you have an outstanding balance in your card is a complete lie. This will only lead to an accumulation of interest and in the long run, it is you who will suffer the most.
If you can’t pay in full, then at least make sure you keep it under 30% utilization.
4. Cut down on the take out
Believe it or not, bringing food from home is generally a lot cheaper. Try to compare a week where you only eat out to a week where you bring food from home, the scenario where you bring food from home is guaranteed to be cheaper. It’s okay to treat yourself out every once in a while, just don’t do it on an everyday basis.
5. Invest
Be it in Real estate or land, which are the top choices at the moment, or in bitcoin where virtual money thrives, ensure that you have a good investment where your money is safe and growing.
6. Talk Openly about money with friends and family
Talking openly about money can help you understand better about other’s financial situations and in turn, will allow you to be able to follow or avoid certain instances that have already happened to someone you know.
7. Build an emergency fund
Always make sure that you have backup funds in case of an emergency. Use this as a safety net for when the unexpected happens like for example when your car breaks down. Having an emergency fund can help lessen your taking money from your other budgets that are already allocated for something else.
8. Educate yourself on Financial Matters
Smart wealthy people take control of their money, and rather than blindly taking financial advice, they make sure that they learn the ropes on their own. Think like a smart wealthy person when it comes to handling your finances. In time you will be one of them.
9. Be Frugal
Most people equate frugality with something negative, but in the financial world, frugality is an asset. This virtue can help save finances and in turn make people able to invest larger amounts of money into investments.
10. Be Disciplined
Frugality can help yes, but what is being frugal when you tend to bend and break every now and then. Be disciplined and constant about your finances and your financial habits. This way, you are sure to follow and maintain good financial habits for the upcoming year.
The new year is the time to turn over a new leaf, and with these tips, it’s time to turn that leaf over into becoming a financing mogul. Remember, when it comes to finances, you can only really help yourself.
