5 Easy Habits To Improve Your Finances

5 Easy Habits To Improve Your Finances

Habits are usually very easily formed but ever so challenging to change and remove. This is true for most aspects of life and critical when it applies to how we earn and spend our money. So it’s obviously preferred that you nurture good financial habits. Not only that you may save yourself from regrets but also that you may reap recurring financial rewards naturally over time.

The following habits are essential to any successfully developed financial foundation. They will continue to help you to achieve your financial goals as long as you adopt them.

Though you may find it hard initially to bring these habits alive, keep on trying until they are firmly cemented into your financial lifestyle. ”As you improve, you’ll stop noticing what you’re doing – exactly how new shoes get more comfortable the more you wear them. When that happens, doors open!” – Wonga SA from their ‘Five steps to help Budgeting first timers’ blog post.

  1. Always keep your financial records in order. This is the first step to achieving control of all your financial matters. Setting up a system which helps you quickly retrieve financial information is key to making transactions efficient and worry free. It makes a huge difference when making account payments whether by cash or EFT. Be sure to keep personal records such as banking information and various account details both secure yet easy to get to.
  1. The best way to truly save is to do so automatically. You can do this by implementing a savings plan in conjunction with your bank so amounts you designate are set aside every month. It not only makes sense for your long-term financial goals but is very useful for items you wish to buy now but don’t have the funds currently. It’s so much better than engaging in credit for things you wish to buy if you have available cash on hand. Remember this savings plan is additional to your regular provident fund or pension but can also prove useful for your retirement.
  1. Take control of your finances by preparing a personal balance sheet every now and again. It does not have to be as often as monthly. At the very least at the end of each financial year wrap up your finances by assessing your net worth, by reconciling your bank account. This record makes a useful reference f you ever feel the need to apply for credit. It also gives you an overview of your steady progress as you enhance your financial position over time.
  1. Become very particular about the usage of credit cards. The best is to do away with plastic money but most people will find this too drastic. So of you absolutely cannot do without credit cards decide once and for all to control them rather than let them control you. Restrict using cards only to purchases which cannot be achieved without them, like online shopping for example. Most importantly pay on time and always try to pay a bit more than the minimum required. This will reduce the time taken to settle your card balance and save you paying lots of interest.
  1. Get familiar with all the various fees and financial charges you have to pay. Bank charges are known to be very expensive in South Africa. With savings accounts, you’re better off choosing an account which offers little to no bank charges. ATM fees are often overlooked so it’s always better to swipe your debit cards for purchases rather than withdrawing cash. If you absolutely have to make a withdrawal save by using only your specific bank’s ATMs.
Categories: Business

About Author