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December 14, 2018 · Leave a Comment

40+ Financial Habits To Develop

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Budget· Budget Tips· Debt Free· Frugal Living· Saving

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No matter whether you’re beginning to get your finances together, or you’ve got your finances together more than Warren Buffet, creating good financial habits helps set you up for success in life.  To help you get started, here are 40+ financial habits to develop.

40+ Financial Habits To Develop

My advice would be to not try all of these at once.  Pick one or two of these habits, and start there.  If you can get one of these new habits to coincide with a habit you already have, that will make it much easier to transition.  For example, if you want to start getting better at budgeting when you sit down and plan out the following week, also write up an outline of your budget for the next week.

Once you have your financial habit you’d like to develop, take small steps towards achieving it.  Make sure you have a plan set up for anything that may become an obstacle.  Back to our budgeting example, if you’re setting up a budget for the first time, it’s best to do it when it’s quiet and the kids aren’t around or at least napping.

Create an accountability system.  I personally love trackers!  There’s something about coloring in a square to mark that I met that small goal that’s very satisfying.  When I reach a milestone, such as a month of no spending, I reward myself with a small prize, such as a chai tea at Starbucks, or Lo Mein from the local Chinese restaurant.

And don’t get discouraged if you’re not making strides towards these habits right away.  While it can take 60+ days to make a new habit, it can take up to 200 days if you’re trying to change an old habit for a new one.

 

1.  Stop Ignoring You Finances

When you ignore your finances, you’re setting yourself up for failure.  To make sure that you’re reaching your goals for life, whether it’s buying a house, an RV, or simply being financially independent, you need to start keeping track of your finances.

2.  Get Organized!

The best way to make sure you’re on top of your finances is to start organizing them.  This includes keeping a budget planner or binder and having a filing system in place for any important financial documents that need to be kept.

3.  Plan For Emergencies

Whether we like to admit it or not, emergencies happen.  Having a plan in place for when they occur will save you money in the long run.

4.  Create & Maintain An Emergency Fund

On top of a plan for any emergencies that may happen, having an emergency fund in place gives you the security of knowing that no matter what unexpected expenses come your way, you’ll be able to handle them.  This can include replacing appliances, costly car repairs, or any medical bills that are higher than expected.  And most importantly, do NOT tap into it for non-emergency expenses.

5.  Set Up A Budget

Set your budget.  Keep it simple by tracking your income and your expenses.  Don’t forget to include savings.  Most importantly, keep it simple and reasonable!  The more complex or unreasonable your budget is, the harder time you’ll have sticking to it.

I love using the You Need A Budget* method, I prefer to keep a paper copy of our budget.  It helps you get to the root of your financial priorities and commitments, and in turn, simplifies your budget.  If you prefer to budget digitally, their online budgeting software* makes it super easy to start your budget, and even start fresh if you need to!  It does come at a cost of $84 per year, but in my opinion, if it keeps you on budget, it’s well worth it!  If you’d like to try their method, you can get a free month of YNAB by signing up here*.

You can grab your copy of the budget workbook I use here!

6.  Pay Yourself First

Don’t forget to pay yourself first.  Whether it’s through sinking funds, savings goals, any investments or retirement contributions, paying your future self first ensures that you’ll be financially secure for whatever your future holds.

Need help in reaching savings goals?  Check out this post on how to reach your savings goals, and get our free 52-week savings tracker.

7.  Max Out Retirement

Maxing out your retirement contributions can help speed up your savings goals, allowing you to reach them faster and retire earlier.  If you’re still paying off debt, you can cut out retirement contributions completely until you’re done paying debt, or you can keep contributions to your company match.  Every situation is unique!  Don’t be afraid to run some possible scenarios to see which works better for you in the long run.

8.  Spend Less Than You Earn

Whether you are spending more than you earn, or spending everything you earn, it isn’t sustainable.  To reach financial independence, you need to spend less than you earn, and save the remainder.

9.  Create Financial Goals

Creating financial goals helps remind you of what you want to accomplish.  Whether it’s becoming debt-free by 40, retiring before 50, or having enough savings in place so your grandchildren don’t have to worry about college expenses, having a goal helps give you something to work towards.  Don’t worry about keeping the same goals.  Life goes on, situations change, and your goals can change too!

10.  Set & Periodically Review Savings Goals

Whether you want to save up for a car, a down payment on a house, or just want to have enough set aside for Christmas gifts, reviewing your progress on your savings goals is vital to helping you achieve financial independence.

11.  Save Any Unexpected Money

I know, the first impulse is to go out and spend the money!  But remember your long term goals here.  The money would do you far better being invested or set into a high-interest savings account.  If you’re still paying off debt, using that money as a debt payment can go a long way too, as it’ll save you a lot of money down the road in interest charges.

12.  Automate Your Finances

When your money is out of sight, it’s out of mind.  By automating your savings, investments and retirement contributions, you won’t miss the money you didn’t see in the first place.

13.  Invest Any Extras You Have Left

Nothing is better than making your money work for you!  If you’re able to invest, do so, and get your nest egg built for you later down the road.

14.  Don’t Overspend On Gifts

Remember, it’s the thought behind the gift that counts more than the price tag!  And if your heart is set on a particular gift for someone, shop around or wait for sales.  Make sure you’re not just throwing the money out there without getting the best deal.

15.  Don’t Impulse Buy

Figure out makes you want to impulse buy, and track those spending habits.  Is it a new sweater you saw online?  Or a cute pair of boots your friend found,  Once you notice a pattern, it’s time to make some changes!  Our no-spend tracker is perfect for tracking impulse spending and has room to give you a goal to work towards.

16.  Open & Review Bills As Soon As You Receive Them

Not only does it help you remain on top of your budget, but you’ll also be able to spot and appropriately deal with any higher charges in the process.

17.  Negotiate Bills For Lower Rates When Possible

If you’re able to, negotiate for lower rates on some of your bills.  Sometimes this can be done with credit cards, medical bills, and even utility bills.

18.  Pay Bills On Time

Not only does this leave you in good standing with your service provider, but it can also give you some leeway if you’re negotiating for lower rates!

19.  Cut Out High-Cost Expenses

Inevitably, there is always one expense we have that is through the roof.  Don’t be afraid to find cheaper alternatives to help save money in the long run.

20.  Pay Off All Debt

It doesn’t matter whether you use the debt snowball or debt avalanche method, find the best debt payoff strategy for your unique situation.  No two debt scenarios are ever the same.  Once you’re done paying off your debt, you’ll find you have a lot more money for saving, investing, and spending.

Need help getting started on paying off your debt?  Here are 6 simple steps I took to start our debt snowball without straining our finances.

21.  Avoid Pay Day Loans

These high-interest rate loans make it nearly impossible to get out from under, so avoid them if you can!

22.  Review Credit Card & Bank Statements Monthly

By reviewing your statements monthly, you can see any potential spending habits that you need to keep in check {is your eating out habit becoming too costly?}.  Also, you can confront any mistakes or fraudulent charges on your statements.

23.  Ignore Your Raise

If your budget is balanced, then your regular income should be able to cover all your expenses.  Put any of the extra money you make towards debt or into saving and investing.  The same goes for any overtime money you make.  By putting all the extra money towards your savings goals, you’ll be able to reach your goals faster!

24.  Meal Plan & Cook At Home

This is where we save the biggest.  Monthly meal planning helps give me a rough idea of what we’re making throughout the month for dinners, and it undoubtedly keeps my shopping very streamlined.

25.  Set A Grocery Budget

You’ll want to calculate your grocery spending over the last few months and see if it’s a reasonable amount.  Don’t worry about what others are spending on their households; no two situations will ever be the same.  Just focus on ways to improve yours, like cutting out redundant food purchases, making multiple meals out of one item, and buying store brands.

26.  Make A List & Stick To It!

Whether it’s in the grocery store or Target, make a list of what you’ll need, and your budget, and stick to the list!  If you’re unable to get everything on your list, either prioritize items by urgency and need, or reevaluate your budget.

27.  Comparison Shop

Don’t be afraid to shop around!  I know this is easier said than done, especially when you have kids in tow.  If you’re unable to make multiple stops to get the best deals, don’t be afraid to price match!

28.  Shop For Used When Possible

Shopping at thrift stores, or even swapping clothes with family members can be an excellent way to save money on clothing.  But don’t limit yourself to clothing.  Some of my best deals have been found on non-clothing items I’ve bought second-hand.

29.  Delay Purchases

If it’s something that isn’t needed then and now, I like to delay purchases for at least 30 days.  This helps me determine whether the purchase is truly a need or just a want.

30.  Realize It’s Okay To Spend On Quality

I came to this realization when buying backpacks for the kids this summer.  It’s hard to find quality backpacks without spending a fortune.  In the past, I’d always let them pick what they wanted, without regard to quality, and liked when the price tag fit our budget.  But then every year in January or February, that same backpack would inevitably wind up broken, completely unable to be fixed.  I got used to buying a backpack on clearance after school started so I had one for just this situation.  If I had just spent a little more on a higher quality item, I would have spent less on a backpack than I spent on 2!  Bonus points when that backpack lasts more than a year!

31.  Use Coupons On Necessities

Sometimes there is simply no other way you can slash expenses on some items.  For me, it’s a name brand body wash.  I have to use a specific body wash, or I break out into hives topped with a horrendous case of eczema.  To avoid this, I stick to one brand of body wash, and I don’t stray.  To help me save on this necessity, I buy it on sale and use coupons to help save even more.

32.  Cut Out Expensive Habits

Whether you smoke, buy a daily coffee at a coffee shop, eat out every day, or purchase alcohol occasionally, these habits can get very expensive over time.  If you have to keep it in the budget, scale back the spending, set a budget for it, and make it as part of your personal spending category rather than it’s own.

33.  Plan Our Your Errands

If you can get all your errands done in one batch, not only does it save time, but you’ll also save money.  It becomes very easy to spend small amounts here and there every time you’re out, and small expenses over time add up to much larger ones.

34.  Pack Lunches

I know that for some, this isn’t the most popular thing to do, but packing your lunch every day can add up to big savings!  If you’re spending $6 every day on a take out lunch during the work week, that’s $120 for a month.  For us, that’s more than our monthly electric bill!  The same goes for school lunches.  If each of my three were to buy lunches each day, leaving out any extras that they pick up in the process, that’s $8 per day on school lunches.

Be sure to check out my must-haves when it comes to packing lunches!

35.  Review & Cut Any Unnecessary Subscriptions

Are you still paying for a gym membership and you haven’t been to the gym in 3 months?  What about a magazine subscription that you just don’t read anymore?  Look through your expenses and cut out what you’re no longer using.

36.  Revise Frugal Habits

What frugal habits are you already doing?  If it’s meal planning, is there a way you can streamline your process?  What about starting a garden to help cut back on some produce expenses during the summer and fall?  Look at what you already do that’s frugal, and see how you can expand those habits, or add some new ones to your repertoire.

37.  Read About Finances

Whether it’s investment strategies or motivation to help keep you on your path to get out of debt, there’s no better way to make sure you’re staying on top of your finances than by reading about finances.  Some books I enjoyed were You Need A Budget* and The Total Money Makeover*.

38.  Cut Redundant Expenses

Do you pay for landline and have cell service at your house?  Do you pay for Netflix, but watch Hulu almost exclusively?  Evaluate what expenses are redundant, and cut the ones that are no longer necessary.

39.  Find Free Activities

There are tons of activities out there that are free, or super cheap!  One of our family’s favorites is geocaching, but we also love hiking, gardening, and biking.  If you’re at a loss on where to begin for free activities in your area, check out your local library.  Ours always has an event calendar for the month, and there are some awesome activities offered at ours.

40.  Find An Accountability Partner

Whether it’s your spouse, a sibling, or a friend, having an accountability partner can help immensely!  It doesn’t have to be fancy, but just someone you can check in on from time to time to see how they’re making strides towards their goals, and vice versa.

41.  Remember to Be Flexible

Things won’t always go as you’ve planned, so you’ll need to be able to go with the flow.  If something comes up that affects your finances, don’t be afraid to adjust savings and financial goals to accommodate your new situation.

 

Are there any other financial habits you’re working on developing?

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makingcentsmatter

makingcentsmatter
Only you can determine what your financial goals a Only you can determine what your financial goals are. If that means you're adding money to your savings account, or contributing to your retirement, while you are paying off debt, then so be it!⁠
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Do what looks right for you and your personal finances.⁠
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#budget #budgeting #savingmoney #savings #cashbudget #cash #cashisking #frugalblogger #frugalmom #frugalliving #financialgoals #personalfinancetips #personalfinance #debtfreejourney #debtfreecommunity #debtfreeprogress #makingcentsmatter #financialfreedom #debtfree
The trick to meal planning is to make it predictab The trick to meal planning is to make it predictable. But predictable doesn't mean the same thing week to week. You could have a chicken meal, a soup meal, a pasta meal, a leftovers meal, a family favorite meal, and so on.⁠
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We always try to go with themed days, but some weeks are so hectic the theme is literally "fast". Thankfully that hasn't been the case lately.⁠
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#mealplanning #mealplan #budget #budgeting #monthlyincome #savingmoney #savings #cashbudget #cash #cashisking #frugalblogger #frugalmom #frugalliving #financialgoals #personalfinancetips #personalfinance #debtfreejourney #debtfreecommunity #debtfreeprogress #makingcentsmatter #financialfreedom #debtfree
I can only hear about my extended warranty I never I can only hear about my extended warranty I never purchased so many times. 😣⁠
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March Debt Paid numbers are in!⁠ .⁠ House: $51 March Debt Paid numbers are in!⁠
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House: $511.13⁠
Citi: $0 – this has a residual $3 in interest charges since payoff, due in April⁠
D NelNet: $100⁠
K NelNet: $100⁠
K Chase: $600⁠
Explorer: $336.27⁠
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Total Paid in 2021: $8,258.84⁠
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Extra Payment: There isn’t one this month since we were $25 away from zeroing out the budget for our February 15th monthly paycheck. That $25, and monies left from our January 15th paycheck, covered our OOP costs for Hubs’ filling. We also have some savings goals coming up that need to be met, making our debt payments a little lower for the time begin.⁠
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#makingcentsmatter #debt #debtfreejourney #debtfreeprogress #debtfreecommunity #realbudget #savingmoney #payingoffdebt #savings #frugalliving #frugalblogging #budgeting #monthlyincome #zerobasedbudget #financialgoals #personalfinance #personalfinancetips #financialfreedom⁠
The battle for who can charge what tonight is abou The battle for who can charge what tonight is about to begin. 😬⁠
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My kids run off with my charger, plug it into one outlet 5 feet from where they found it like that particular outlet is the only one in this house, and then proceed to fight over who can charge their device first at night.⁠
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Then they get grumpy when it's their turn and it's not the proper input cable. #itwasmychargerfirst #dontlikeitgofindyourown⁠
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#parentingteens #parentingtweens #momlife #realife #budget #budgeting #savingmoney #cash #frugalblogger #frugalmom #financialgoals #personalfinancetips #personalfinance #debtfreejourney #debtfreecommunity #debtfreeprogress #makingcentsmatter
A needs his wisdom teeth taken out. I've talked a A needs his wisdom teeth taken out. I've talked a bit in our February Budget Check-In about how much of this I think we'll owe, and you can check that out on my YouTube channel if you're interested, but I wanted to say here...⁠
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To the mother with little kids struggling to get your finances in order, it will get better. I wish I could have heard those words years ago.⁠
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Nearly 10 years ago we were facing a $1,400 out-of-pocket portion for A's Phase 1 orthodontic work (I looked it up after I uploaded the video... we had a $1,400 portion).⁠
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It was a lot of money for us at the time. Our kids were 6, 2, and 3 months old. I don't think we even had $500 in savings, and I just left a part-time teaching job because it wasn't paying the part-time daycare bill, so paying our portion in full was just a dream I didn't think was achievable.⁠
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I was even stressing about the monthly $100 payments. We were so strapped. It was our breaking moment to start cutting costs and budgeting more effectively. We've learned a lot in that time period.⁠
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What we've learned is that it does no good to stress about it all the time. Life happens. All you can do is try to plan ahead, and if it's something that's unplanned, readjust. It won't always be easy, especially at first, but it will be worth it.⁠
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Nearly 10 years later, we are still paying off our debts. Student loans suck. But I see this bill as a reminder of how far we have come. Seeing a bill like this doesn't stress me out like it used to, and I know we can easily create a plan that can get it done and out of the way.⁠
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Will it delay our debt-free date more? Yes. But it's not worth stressing over. Life happens, readjust, and continue on down the path. It's called a journey for a reason.⁠
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#wisdomteeth #personalfiannce #personalfinancetips #financialgoals #budgeting #budgets #savingsgoals #savings #cashbudget #zerobasedbudget #debtfreejourney #debtfreeprogress #adulting #lifehappens #realife #realbudget #makingcentsmatter
It's almost payday! Here's how our variable budget It's almost payday! Here's how our variable budgeting categories are working out for the pay month.⁠
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Food is looking good this far into our paycheck, probably because miscellaneous - which includes eating out - took a hit with unexpected purchases. Pet is low for this time of the month, and Household is spot on.⁠
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Fuel looks like it'll be lower than last month (yay for weeks of snow days & delayed school starts), and Therapy had one more appointment than initially planned.⁠
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Garden, Dental, Medical & Propane are not included in these estimates so far because those expenses are coming from sinking funds. Once we're done with the month and review the budget, I'll move over the total amount spent from those sinking funds.⁠
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How's your paycheck budget coming along?⁠
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#realbudget #monthlyincome #monthlybudget #budget #budgetupdate #budgeting #savingmoney #variablecategories #savingmoney #savings #debtfreecommunity #debtfreejourney #cash #financialgoals #personalfinancetips #personalfinance #frugalliving #frugalblogger #budgetblogger #makingcentsmatter
Automating your finances makes saving money and bu Automating your finances makes saving money and budgeting more convenient, and therefore easier on you. Out of sight, out of mind, right?⁠
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What's one thing you can automate this week to make your finances easier?⁠
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Me? I'm going to set up our sinking fund transfers to automate every payday (the 15th of every month). Our bank set up a feature on their app where we can schedule savings transfers now, and I'm going to take advantage of it!⁠
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#personalfinance #personalfinancetips #budgeting #budgettips #personalfinancemadeeasy #savingmoney #savings #sinkingfunds #cash #frugalblogger #frugalmom #frugalliving #debtfreejourney #debtfreecommunity #debtfreeprogess #financialfreedom #makingcentsmatter
Oh my word... our miscellaneous category has gone Oh my word... our miscellaneous category has gone a smidgen overboard this month!⁠
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I foresee a goal for March's paycheck to at out less than twice. That's where this category went awry. $99.16 of it went to eating out. 😑 Some of it was avoidable, but not all of it. Having to drive to multiple appointments in one day during snow squalls and rearranging our whole day was one of those unavoidable instances.⁠
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Tracking our expenses - much like a budget review - is vital to sticking to your budget!⁠
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#makingcentsmatter #debt #debtfreejourney #debtfreeprogress #debtfreecommunity #realbudget #budgetcategories #monthlyincome #savingmoney #savings #frugalliving #frugalblogging #budgeting #zerobasedbudget #financialgoals #personalfinance #personalfinancetips #financialfreedom #expensetracking #budgetfail
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