How Your Habits Can Help You Save Money

Did you know that your small, daily habits are the ones that have the biggest impact on your financial future? If you want to reach your financial goals (i.e. retirement, save money for kids’ college, be able to take a grand vacation, pay off all your debt, buy a new car, etc.), then you need to make sure that your habits will get you there.

What are some healthy financial habits you can create?

• Make lists. Before you go shopping make a list of the things you need so you can avoid impulse buying (i.e. don’t buy it if it’s not on the list!).
• Save, save, save. Saving is a good habit no matter how you do it. You can do things like set up your automatic deposit so that part of your paycheck automatically goes into savings. Or every time you pay with cash, put the change in a jar that you periodically take to the bank.
• Pay your bills on time and in full each month. This will help you avoid unnecessary late fees and increased interest rates.
• Keep track of your expenses. Creating a budget is not as hard as it may seem. If you can add and subtract, you can work a budget. The trick is to know what you are earning and spending so you can make adjustments.

How can you make those habits stick?

• Write down what you want to do and accomplish. Did you know that the simple act of putting something in writing makes you more likely to follow through with it?
• Give it time. It takes about 27 days to make something a habit. In just under a month, you could develop a healthy habit that will help you reach success. When you get going, sometimes a month can seem like a long time, but stick with it. Take it one day at a time.
• Give yourself reminders. Put sticky notes where you will see them to remind you what you want to accomplish as you brush your teeth, cook dinner, sit at your desk, walk out the door, etc. In case you ]start to lose sight of your commitment, having reminders in places you will see them will help you stay strong.
• Get the family involved. Discuss with your spouse and children the new habits you want to form and have them help you, or develop those habits as a family. You can gain much support and encouragement from those closest to you, especially if you are encouraging them at the same time.
• Change how you talk and think. If you make a mistake and either forget to do your habit or slip into an old, bad habit, don’t berate yourself. Instead say to yourself, “Hmm, that is odd. That is a behavior I used to do, but now I do (insert activity) instead.”
• Eliminate temptation. The easiest way to fall back into an old habit is to have the temptation right there in front of you. Try to find ways to either get rid of that temptation altogether or produce a different response when it is there. For example, sometimes when a person who is trying to quit smoking gets the urge to light a cigarette he will instead start snapping his fingers. This replaces a harmful behavior with a neutral one.

Sit down today and write out some new financial habits you would like to form. While it’s never too late to start fixing your finances or managing them better, the sooner you start the more successful you’ll be. If you have any questions or need more ideas for financial good habits you can work on, let us know! And if you have found some good habits that have worked for you, be sure to leave a comment so others might be able to try them too.

Tags: habits, save money