In today's fast-paced days, it's easy to lose site on where your money is going. But building good financial habits doesn't have to be hard. Small changes can lead to saving hundreds of dollars a month - without changing the way you live your life! Here are five easy money habits that can greatly affect your finances.
1. Track EVERY dollar spent
One of the easiest, yet most lucrative and powerful money habits you can establish, is simply knowing where your money is going. Use a budgeting app like Mint or YNAB (You Need a Budget) or just a simple excel spreadsheet to track your expenses.
Once you know what you are spending your money on daily, you'll be less likely to make impulse purchases - and will also be more likely to identify where you are spending too much money. Many people have made simple adjustments in their financial habits and save upwards $100 each month by eliminating simple and often forgot about, expenses like dining out or streaming subscriptions that they don't use.
2. Plan your meals and cook at home
Food is typically among the largest category of overspending. Eating out, or ordering delivery, adds up in a hurry. By planning your meals and cooking from home (which you can be assured that whether it is healthy option or not, it will be less expensive than eating out), using the data from the first point to anticipate costs and consuming more unprocessed & fresh foods, everyone wins!
3. Begin Automated Savings
It's classic advice for a reason to "Pay yourself first." You can automate your savings so that before you see your paycheck, a percentage of it goes directly into a high-yield saving account.
You can start small, $25 or $50 per paycheck, and ramp it up over time. Most people won't even miss the money after it's out of sight. With time, a small habit like this can grow into a valuable emergency fund and carry you through in the event an unexpected expense forces you to pay expensive debt.
4. Use Cash-Back and Rewards Effectively
Many credit cards come with cash-back or points for purchases you are already making, zoals grocery and gas purchases. If you do use credit cards, pick one with a cash-back or points option, and be sure to only spend what you would typically spend — then pay the balance off each month to avoid interest.
You can use cash-back or discounted shopping apps as well, including Rakuten, Honey, or Fetch Rewards. The small bonuses can add up to hundreds of savings per year.
5. Review subscriptions and cancel what you don't use
Spend some time-fifteen minutes or so-going through some bank or credit card statement for regular recurring charges. Are you still utilizing all of these subscriptions?
Paying for gym memberships, streaming services, cloud storage, apps, or monthly subscription boxes, a lot of people tend to find they're paying for things they haven't used for months. Canceling unnecessary or unused subscriptions should save you three to four hundred dollars per month, right off the bat.
Final Thoughts
Small consistent habits can accumulate great results. You could save hundreds of dollars each month, feeling deprived at least by cutting down on expenses, eating at home, auto-setting money into savings, using rewards right, or subscribing to things that you will never use.
Think about starting with just one or two of these habits today. Your future self will thank you later!
0 Comments