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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
Payday is today! Actually, payday was Friday the 1 Payday is today! Actually, payday was Friday the 12th because we completely forgot today is a bank holiday in the US. The feeling of being paid and not needing it is a nice one.⁠
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Here's what our paycheck needs to get us through for bills until March 14th. For a full look at our budget over the next month, head over to my budget with me on YouTube: https://youtu.be/rb8uyi1-rNc⁠
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#monthlyincome #monthlybudget #monthlybudget #zerobasedbudget #payday #budgetwithme #budgeting #budgettips #budgetcalendar #frugalliving #savingmoney #paycheck #makingcentsmatter #debtfreejourney #debtfreeprogress
This weekend was focused on a pantry shop and meal This weekend was focused on a pantry shop and meal plan creation! This meal plan to get us to our February payday. We also picked fast meals, because it's a busy two weeks between doctor's appointments,. Academic Decathalon, dance, and drama. I'm unsure we'll be able to shop on payday, hence the extras.⁠
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Total spent: $112.39 for items to get us through this and lunches.⁠
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Keep in mind, just over $112 for 12 meals isn't sustainable for our family, just in times when we need to stretch the last bits of our monthly income. I really wish $112 was enough to feed two teenaged boys in our household.⁠
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The point being... do what works for you, and your situation based on your location. Don't try to fit yourself into someone else's situation!⁠
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#mealplan #mealplanning #frugalliving #frugalmom #makingcentsmatter #savingmoney #monthlyincome #budgeting #budgetmom #groceryshop
January's real numbers:⁠ .⁠ House: $511.13⁠ January's real numbers:⁠
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House: $511.13⁠
Citi: $720⁠
D NelNet: $100⁠
K NelNet: $100⁠
K Chase: $150⁠
Explorer: $343⁠
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Extra Payment to Citi: $500⁠
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Noteworthy... our car payment had a late fee assessed because the mail was SLOWED down over Christmas. Three headaches later, and we potentially have online banking finally set up with them. It is still a headache. And we are never taking another car loan out with this bank!⁠
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How was January?⁠
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#makingcentsmatter #debt #debtfreejouney #debtfreeprogress #debtfreecommunity #realbudget #savingmoney #savings #frugalliving #frugalblogging #budgeting #monthlyincome #zerobasedbudget #financialgoals #personalfinance #personalfinancetips #financialfreedom
Sometimes in order to see progress, you need to ta Sometimes in order to see progress, you need to take a step back.
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I'll be honest, I didn't think that we got this far in 2020. With everything going on - and more importantly, everything NOT going on - we didn't keep up with this every month. We just threw what we could at our goal. I'm simply amazed at how far we came.
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Things are still hectic, and I'm simply mentally exhausted between remote learning, extended remote learning, offset quarantining children... it goes on and on.
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But I also cannot wait to see what strides we will make in 2021.
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#makingcentsmatter #debtfreejouney #debtfreeprogress #savingmoney #savings #frugalliving #frugalblogging #budgeting #monthlyincome #zerobasedbudget #financialgoals #personalfinance
This is what school looks like when it's a hybrid This is what school looks like when it's a hybrid model, and your house does not have unlimited space. I was standing in our kitchen when I took this picture, the kids behind me making lunch.
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Our district is carefully monitoring our local infection rates, and we are currently in a hybrid form. That means they divided the district into two groups; half are in school on Monday and Tuesday, the other half on Thursday and Friday. They are offering an all remote option, but Verizon for some reason supplies our house with speeds so slow that it would shock a tortoise. Remote was a no-go.
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This set-up has taken some trial and error to get to where we currently are. Because no matter how prepared you are and how much you've planned, once you're in the weeds, actually doing it, there is no telling how your best-laid plans will work.
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Our home is a 1800sqft one-story, open living area, 4 bedroom, 1 bathroom, ranch-style house in a very rural area. It has no home offices. No guest bedrooms. Yes, that is a desk in the corner of our dining room. 🤣
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Each kid gets their own color bin for their school work. This includes school-issued Chromebooks and other standard items they need to get work done - headphones, pencils, and so on. When we are done for the day, we clean up everything, place them neatly in these bins, and place them in cubbies (on my current left) at night while the Chromebooks charge.
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I do NOT bother to clean up at lunchtime. It would take us more time to clean up and reset everything than it takes us to eat lunch. So we only pack it all up for the day and call it done.
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During the day, I sit between my younger two and field any questions they may have, troubleshoot technical issues we all have, and be the overall bouncer when things get off-topic. My high schooler will occasionally emerge from his bedroom, which opens to the kitchen. So he is close by when he has questions.
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Please remember that with all things in life, you need to work with what's available to you. And there is no shame in that. Don't ever feel like you're not doing good enough because it's not picture perfect. Work with what you have available to you, and you'll do amazing things.
School is in session, the garden is slowing, and I School is in session, the garden is slowing, and I’ve finally realized I haven’t shared our payoff numbers for July or August. Yeah……
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Please keep in mind, we are paid monthly on the 15th, but we don’t go by a “monthly” budget. So I have to go back and look at these numbers based off their due dates in the calendar. Because our pay falls in the middle of the month, I can’t tell you what portion of our income went to debt. It’s going to vary paycheck to paycheck anyways because our priorities vary with each check. Nothing is ever the same month to month, and pay to pay.
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That said, inJuly we paid off $2,694.43.
In August we paid off $1,673.40.
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The difference here is that our priorities shifted between the two months.
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During August, we were doing more prep for whatever school would look like this year, and we had some savings goals make their way to the top of the list as well.
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Of those goals, in August we made progress!
EF Reimbursement: $146 / $1,200
Checking Buffer Reimbursement: $227 / $500
Vet Sinking Fund: $40 / $200
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Remember this is a journey, not a race. There is no point wearing yourself ragged and still making no progress. Make progress where you can, and celebrate it. Even if it’s $5.
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It’s progress, and that’s what matters!
While I wait for the canner to finish the last rou While I wait for the canner to finish the last round... I rearranged our recipe binder. It's only taken me 8 or so years. 🤣😶😭
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I miss the days when zucchini was my problem. Now it's tomatoes. I can only find so many ways to use up spaghetti sauce! So the next 50lbs or so will be chili base and unseasoned sauce.
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On top of this school is starting with a hybrid in building & online system. And I'm seriously slacking on some things I need to do. I'm not good at juggling multiple things and the balls are falling. But I keep reminding myself... be patient. This too shall pass. This is only a phase. So I pick and choose what's the most important, focus on that and go from there.
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So if you feel overwhelmed with your current phase, remember, this too shall pass. It's okay to rearrange priorities. It's okay to take a breather.
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This too shall pass.
If you didn't start finding interesting ways to ge If you didn't start finding interesting ways to get rid of the squash, can you say you even planted any?
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Good news, I'm almost caught up! Bad news, the garden has more.
Super busy here... but I wanted to share that wins Super busy here... but I wanted to share that wins can come in super small packages. I thought I'd spend $380 to clean the band instruments in this house. I ended up spending $234. So the remaining $146 can go to reimbursing what I pulled from our EF.
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No matter the win, celebrate it!
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What are some wins you have had lately?
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