Written by Dominique Bancey
Set a major financial goal. Making goals for your finances is one of the best things you could do. Whether it be an amount you wish to reach at the end of a week, month, or year, it will allow you to save without even thinking about it.
➢ Budget. Budget. Budget. Growing up you probably always heard your parents talking about budgets, and even though you may have overlooked it, you need to pay attention to budgets. Making a budget at the beginning of each month will ensure that you do not spend more than you need to.
➢ Keep track of your net worth. Hearing ‘net worth’ is usually associated with businesses or even celebrities. However, it is not that difficult to calculate your own net worth. You can do so by summing up all your assets then subtracting your liabilities. By doing so on a schedule (every 3-6 months), you will ensure that you are sticking to the budgets you make each month.
➢ Make a payment to your credit card every week. Usually, most persons tend to make payments to their credit card at the end of every month. However, it would be better to pay it at the end of each week. This will make sure that you do not spend money that should be contributed towards it, on something else.
➢ Keep a journal of what you spend for the month. It is good to build up a good money habit. Impulse spending each month leads to a bad money habit. Having a journal will ensure that you make regular payments each month.
➢ Keep receipts. Always ask for a receipt whenever you make a purchase.
You do not necessarily have to keep them for a long period of time, but you could copy them into your journal so that you can keep track of exact spending habits.
Forming a good money habit is not easy, but following these tips (and more), could make it easier. Try these tips and build up your habits.
Until next time.