Habits are things people do all the time. These things can be good or bad.
Habits apply to all parts of life and are equally hard in quitting or starting. There is one area where your habits can make or break you, and that is with your finances.
Bad financial habits can incur more debt, a negative bank balance and being held back financially from your goals.
1. Grab One Less Cup of Coffee
This has been heard a lot especially when talking about the Millennial generation. “If they’d only quit buying coffee they could save for a house.”
It doesn’t work quite like that, but if you did cut down from a venti soy latte to a tall you would save $2-$3 on each trip to the coffee shop. Use the coffee shop as a way to reward yourself instead of as a daily stop.
2. Bring Your Lunch
Going out with the group for a $10 lunch can add up to over $50 per week just for lunch! Getting lunch with your co-workers can help with office relationships, so it’s ok to eat out once in a while. But, by bringing your own lunch, you can save a lot of money and eat healthier.
3. Check Your Balances
If you don’t know how much money you have, you don’t know how much you have spent or can spend. You may not need to check this everyday, but be sure to look at your account at least every other day. The more consistently you look at it, the more likely you are to catch something amiss, such as fraud, or if you will be overdrawn.
4. Write a Grocery List
We are all guilty of impulse buying, especially at the grocery store.
“Oh I haven’t tried that before!” And in goes a $10 jar of whatever that you probably won’t eat but it looked pretty.
If it isn’t on the list, you don’t need to get it. Better yet, some stores offer online shopping and delivery. By not being there to physically put stuff you don’t need in the cart, you can save money.
5. Setting Up Automatic Bill Pay
Though bills usually aren’t daily, by taking the time to have these set up automatically, you don’t have to worry if you paid them or not. Late fees and charges on bills add up. Opening your mail when it arrives and not when you find it buried under something can help with not missing any bills as well.
6. Track Expenses and Income
Know what you spend. If you don’t know what you are spending, you don’t know what your situation is. You can’t make goals to save and pay off debt. Once you start tracking your spending, it might surprise you with what you actually spend your money on.
Make your money work for you. You spend a lot of your time working to make money. Use it to your advantage.
By practicing these daily money habits, you can start to turn your finances around. Create smart goals and stick with them. It takes roughly three weeks for a habit to stick, depending on the person.
What daily money habits have you started to improve your finances? What other daily money habits do you have?
Photo courtesy of: dungthuyvunguyen