Learning Good Financial Habits Today

You understand that to build wealth you need to make goals, a budget and create good financial habits. Right? Okay, you do, but now what habits are good? Which financial habits will help you save more, spend less and get you to retirement in dignity? 

Here is a short list to get you started on making good habits to help you get to your goals. Master these first since they are the most important, then move on to some that may be a little harder or less obvious.

1. Keep a "Spending Tracker" and balance it every week. If you don't use a tracker  then how will you know how much money you have. 

It's so easy to spend more money when you don't know how much there is. So start record keeping now and balance it every week, so you always know exactly how much you have. 

There are plenty of online apps (apps are geography dependent so please check which are applicable for you) or your bank may also provide this service.

2. Spend cash. It is proven that when you spend cash, you spend less. I know for me when I put down $100 for groceries I can almost feel part of me leaving with that $100, whereas with a debit or credit card, and or payment facilitated by your mobile phone, it's easy to swipe and move on. Plus when you have cash you can physically see what you have left, rather then look at some number written down. I say just keep the credit card at home, and only pull it out for emergencies, where you may not have enough cash out of the bank account or when you travel.

Delete any mobile phone payments apps you may have, this will also prevent you from buying on impulse.

3. Use a diary and write down everything you spend each day. No matter what it is coffee, newspaper, a vending machine, if you spend it write it down. Then at the end of the day total it up. It's amazing how much that end number can be. Before I changed that number would sometimes be $30 or more. Seeing how much I was spending greatly changed what I bought throughout the day and now I save easily 400-500/month because of that. 

4. The most important thing you can do to build wealth is to start saving and do it now. Every payday, deposit a portion of it to savings. Better yet if you have direct deposit and can put it in different accounts have it go directly to savings so it's like you never even had it to begin with. 

These habits can seem hard at first and may take time to perfect. However, if you work hard and consistently build and develop these habits you will be glad you did come time to retire. These habits will even help you short term, like when the the car requires new tyres, your son's public education is going to cost $900 or even when the dishwasher breaks down. 

Article Source: https://EzineArticles.com/expert/Kayle_Rowe/573649