A New Year!! I get so excited for the new year, I don’t know what it is.
And no, I’ve never been the #NewYearNewMe type. But I do take the time to reflect back on the year and make small changes and tweaks to my habits moving forward. If there’s one thing I know about personal development is how small changes can lead to big results! Especially when you make a plan and decide to stick to it.
It has taken me some time to change my finances and become completely independent. So I have collected the 7 money habits that have transformed my life, that I’m sure will help you in your owns.
If you struggle with debt, live paycheck to paycheck, or just want to get better control of your financial future, keep reading…
Here Are 7 Money Habits To Adopt For A Better Year
Live Below Your Means
The simplest (yet hardest) advise for most to follow. This simply means to spend less money than you earn. This is the one piece of advice you need to work on if you have debt.
Although this concept is easy to understand, it’s hard to follow for many. The main struggle most have is they get credit cards that have an enormous limit on it (you don’t need a $17,000 credit limit!) and they just spend spontaneously. If you don’t have a plan for your money, your money will have a plan for you and it will overtake your life!
The best way to live below your means is to create a budget and give every cent you earn a name.
It is very rare to need to buy something urgently. There are plenty of reasons to wait to buy something. Perhaps you’ll rethink the purchase, or the price of the item drops. Either way, you can wait to put it in your budget and accommodate the item so it’s less of an ‘impulse.’
Track Your Spending
Go through your statements from the last couple of months and see where your money is going. Once you are aware of your spending habits, you can make better decisions moving forward.
Some people are scared of looking at their statements. Don’t be!! Being aware there is a problem is the first step. You can’t fix your money problems if you don’t believe you have one.
Thanks to technology, there are a lot of apps that can help you do this. My favorite is Mint, which links
Cook at Home
The biggest money waster of all time. Dining out! Make a new years resolution to cook more meals and start meal-prepping. Not only will this save you money, but it will also help keep you healthy. However, I know many of us aren’t good at meal-planning or simply don’t have time.
If you struggle to come up with a meal plan for the week, consider signing up for 5DollarMealPlan. For just $5 a month, you get a weekly meal plan with a grocery list. It saves you both time and money.
They even offer a FREE 14-day trial absolutely RISK-FREE! If you decide that this isn’t for you, simply cancel it with no questions asked.
This one isn’t a habit. It’s more a set it and forget it, and it only takes 2 minutes to do! I have set up automatic transfers from my checking to my savings account every two weeks, so I’m saving money without even giving it much thought.
Also, automate your payments to ensure you always pay on time and avoid late fees. Life gets busy and it’s easy to forget when certain payments are due. I have bills that are due on random days of the month, like the 11th. I guarantee you I would always forget to pay that bill with the million other things in my head. Those late-fees can be quite hefty and completely unnecessary. Take two minutes today to set your accounts on autopilot.
Invest In Yourself
No one can do this for you. You have to take the time to educate yourself.
Instead of spending your money on things why not invest in courses and books? Consider reading Dave Ramseys Total Money Makeover or following some finance blogs. There are so many resources online that you can take a look at. Set aside just twenty minutes a day to read something that will benefit your future-self. By simply taking the time to learn something new every day you are setting the way for a more secure financial future.
Only Use Cash
If you struggle with debt, I highly suggest you try this method. Instead of using your credit cards, only use cash. As Dave Ramsey says, ‘if you can’t pay cash, you can’t afford it.’ Once you get a paycheck, put some of it in saving automatically and take out the rest in small amounts. Only use your credit cards in an absolute emergency.
When you have to pull out cash, you realize how much you’re really spending. It’s a lot different to swipe a credit card for $127 and just forgetting about it than having to pull out a $100 bill and seeing how much money is left in your wallet.
Sell Your Clutter
You only have to do this about twice a year, but it makes a huge difference in your life. Not only will this add some change to your wallet, but it will also keep your home nice and organized. Some of the stuff we tend to hoard and never use are our clothes, DVD’s, books, and toys. If you haven’t used or worn something in six months, it’s time to part ways.
There you have it. Will you be using any of these tips and tricks in the coming year?
What other habits are good for our money? Let us know in the comments!