HABITS: Developing excellent financial habits

To become truly responsible in life, you need to keep your financial affairs in order. This may sound easy, but it requires a great deal of focus and discipline. You also need to go against the grain and break free from your negative habits. Since entire habits cannot be hammered away, you need to develop excellent financial habits instead.

So, if you’re serious about improving your sense of financial responsibility, you can now start adopting these simple habits:

Create A Simple Budget Plan

While a budget can appear intimidating, it’s very important in handling your financial obligations. We tend to get distracted with unnecessary purchases, thus leading to shortage. Always write down your monthly income and itemize your payables. And don’t forget about the little things like daily Frappuccino or your fast food lunch - they will add up later. You can jot down these daily items in a small journal for greater clarity.

Fine-Tune Your Finances

You can approach this in two ways: dedicate an hour over the weekend to review all your current bills, or, you can review bills as you receive them. If you find questionable charges, investigate them like an operative. Cut them down swiftly if they don’t serve specific purposes.

Next, contact all entertainment providers to see if there are any current discounts available. You can even assess and remove services or features you don’t use or that aren’t worth the cost. Remember, your providers aren’t going to tell you how to reduce your bills - it’s up to you to find out about promotions and streamline your services. If they present a tempting offer, always ask yourself if it’s worth the additional expense.

Tighten the Belt

Entertainment is a necessary factor in our lives. Without entertainment, we’ll be like zombies dragging ourselves towards misery. However, it’s also necessary to avoid overspending in this area, especially because it’s easy to get carried away. Otherwise, look for free activities in your area. Free music is fairly easy to come by and your local park won’t charge you (or won’t charge you much) to enjoy a relaxing picnic. Beef up your creativity – it’s good for your mind and wallet.

Another unique strategy that you can apply is to take out a personal loan. But where will you use it? Apart from emergencies, you must use it to fund a side hustle or investment. While doing this, you need to maintain your job or income sources. Someday, your investments will pay off and you’ll be debt-free!