Money Habits: How to Ditch Bad Ones and Create Good Ones

Money Habits: How to Ditch Bad Ones and Create Good Ones

Money is a huge part of most adults’ lives—if not all. You put in a lot of effort to make it. So it can be painful when you can’t accomplish what you hope to with it. 

This post focuses on healthy money habits and how powerful they are.

Creating Lasting Money Habits

When you make something a habit, you are able to do it without much effort or thought.

Your money habits—how you spend, save and give—can either bring you peace or worry. But the good news is that you can change your money habits for lasting peace. 

If you’re struggling to make ends meet, even though you earn a good amount, its time to make some changes. Assess your habits and see which ones are holding you back. Then start dropping them. Here are a few tips to help.

Make a budget. The first habit you need to adopt is using a budget. A monthly budget directs your money, so every dollar is accounted for. Before you get your paycheck, you should decide the amount to save, spend and give. 

Establish goals. Before you get into new money habits, set a goal. Why do you want to do this? Maybe you are trying to save for your child’s college or a dream vacation. A goal is a great motivator.

Create a habit to help you attain the goal. Assume your goal is getting a new phone. You can decide to start a habit of cooking instead of eating out. 

Have a reward system. If you keep up a good habit for a certain amount of time, reward yourself. It doesn’t have to be something big. 

Monitor your progress. Every month, come back to your budget and see how you are doing. Make any necessary adjustments.

Don’t get discouraged if you didn’t do everything right. Learn from your mistakes. 

Good Budgeting Habits to Adopt

Budgeting habits are easier to get used to.

Monitor transactions. Do you sped more than you plan to? If you always find yourself spending more than you had planned, it is time to make adjustments. 

Get a budgeting app. Sometimes, entering every transaction manually can be tiring. Apps automate the process for you.

Where to Start: Easy Money Habits

Thinking of all the habits you need to adopt can seem like too much work. But the best thing to do is start small. Every week, try one or two habits and see if you can keep them up. If you don’t have any ideas, here are a few.

Make your own coffee. Coffee at home is cheaper and you don’t have to pay additional money for more hazelnut syrup. 

A new grocery routine. there’s so much money to be saved in grocery shopping. Buy everything at the farmers market, download coupons or order online so you don’t overspend.

Get books at the library. Instead of spending money buying books on Amazon, go to the local library.

Cash only. If you always overspend at your favorite store, leave your debit card and only bring cash. 

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