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7 financial habits that improve your life every day

We all know how important it is to establish good financial habits and practice them every day to achieve your short-term and long-term goals in life. However, a common mistake many people make is being overly ambitious when deciding to improve their financial life. They try to change too many habits and struggle to maintain them, then quickly fail.

What is the solution to this problem? Tanya Peterson, vice president of branding for Freedom Financial Network, advises starting with picking just one or two habits to change. Here are 7 financial habits you can create and implement every day to improve your overall financial health.

Create a budget and stick to it

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If you don’t have a budget yet, it’s time to create one. If you already have a budget, keep going. Valerie Moses, senior relations manager at Addition Financial, says that creating and sticking to a budget is one of the best financial habits anyone can adopt.

“Having a budget will help you direct where your money goes and help you earn more,” says Moses.

There are different methods you can use to create your own budget. Remember, there’s no one method that works for everyone, what’s important is what works for you.

Pay bills on time

This is a habit you need to practice regularly. Simply paying your bills on time will help you avoid putting yourself in a difficult situation and avoid incurring late fees.

Check your account daily

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How much money do you have in your checking and savings accounts? Experts all advise us to make it a habit to check our accounts every day.

You will always know how much money you have, and it will help you avoid overdrafting your account or detect if any fraud is taking place. Now it’s easier than ever to keep track of your finances via online and mobile banking apps.

Practice the habit of “piling up”

What is the habit of “piling up” and what does it have to do with personal finances? Alvin Carlos, financial planner at District Capital Management, says habit stacking is how you tie a financial habit to one you already have. This change will make it easier for you to focus on your new financial habits.

Carlos gives an example that you can check your finances after going for a run on the weekend or after drinking coffee every Saturday morning. You should also add to your schedule a financial review every day. once a month.

Automatically save 10% every time you receive salary

According to Peterson, each of us should create the habit of saving as soon as possible. Don’t wait until a certain time to do it. Start by saving 10% (or more if you can, or less if needed) every time you get paid.

“Make it a habit by automating. You will no longer have to waste time and energy thinking about spending money,” Peterson said.

You can completely set the mode to automatically transfer 10% every time income is generated to a savings account or transfer the money yourself.

Looking for small ways to save money

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Amid rising inflation and the cost of living, Peterson recommends finding “small but mighty” ways to save money. Don’t think that saving has to be something big and big, it can be as simple as washing your clothes in cold water instead of hot water, making your own breakfast and drinks instead of going out to the store. .

“Small things may seem insignificant, but when you form and develop this habit, you will spend more wisely. You will see those little savings gradually increase and find yourself eating and living healthier, ”said Peterson.

Set financial goals

In order to stick to a financial habit, you must have a purpose. See how those habits help you achieve your short- and long-term financial goals. That could be the goal of retiring at 50 or 60, traveling, having time to pursue a hobby, or a new car.

“Once you focus on what you want in this life, creating the habit of saving and spending will make it easier to achieve that goal,” says Peterson.

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