There are so many options when starting our your financial journey. If you’ve searched anything to do with being better with money, there are thousands.
It can be daunting to start. But, there are habits that you can start today that will help. If you build these financial habits into your routines, then over time they will have a powerful impact.
Financial habits can often be seen as boring, or complicated but they don’t need to be.
Here are 5 financial habits you need to start today.
1. Start a budget + start savings.
Honestly, you need to have a budget. Whether it’s a budget planner, a spreadsheet or an app, there is no excuse for having some kind of budget in place! A budget can be as complicated or as simple as you want to make it.
Your budget is up to you but you need one. When that budget is in place, then you need to set up some savings. Some to an emergency fund, some to some short term savings and some for the long term.
These can be small amounts to begin with, but just get in the financial habit of transferring money to savings.
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2. Set aside to review your finances.
There is no point in having a budget system set up if you never check in with it. Set some time aside to review your finances. This could be once a week, twice a month, whatever suits you! Reviewing your finances needs to be done so that you can change your budget if needed.
Reviewing your finances can also ensure you stay on track with your financial goals.
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3. Enrol in a pension scheme or review this.
Hopefully if you have an employer then you will already be enrolled into a pension. If not, then check this out ASAP! If you are employed then you pay into a pension and your employer also pays in for you. So you are missing out on free money if you don’t have one!
If you are self-employed then you can set up a Self Invested Personal Pension (SIPP) so that you pay into your own pension. This is a tax saving as well, so look into this if you are self-employed.
4. Pay off debt.
Once you’ve got your budget and savings in place, plus you have some time set aside to review your finances, now is the time to pay off that debt. Yes, it might be scary. But it will be such a relief when it’s gone.
Add it up, make a plan and start. Starting anything is the difficult step and this is one financial habit you definitely need.
5. Start investing.
So, your finances are in order! The last financial habit that you should look at is to start investing. The biggest step of all! There are lots of investing posts here at The Frugal Cottage plus I have lots of videos over on YouTube about investing.
So here are 5 financial habits that you need to start today. If you get these in order, then your finances will be looking great in no time!
Do you agree? Do you do any of these? Let me know in the comments!
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