If you’re looking to make more money in 2019, a good place to start is to change your financial habits. When you adopt a smart money lifestyle, you increase your chances of building wealth in the long term. Here are six simple financial habits you should adopt to start seeing significant and positive results in your fortunes this year.
Create a budget and a plan and stick to it
It’s one thing to create a budget, and it’s an entirely different thing to follow it through. But first, on the matter of creating a budget, it’s important that it is S.M.A.R.T – Specific, Measurable, Attainable, Relevant, and Timely. You should allocate all incoming money money on paper in advance, with a plan for where it will go in your budget. By doing this, you’ll be able to focus on your savings target and even pay off debts more quickly, if you have any needing cleared.
Automate your finances
If you haven’t automated your savings, set it up now. Putting your financial plans on auto-pilot – including creditors, investment accounts and savings accounts – allows you to build your wealth easily.
This is one money strategy that works well as it ensures you don’t forget a payment, and you can save effortlessly as you won’t even see the money as it goes from your earnings to your savings account.
Save and invest any extra cash or windfall
Have you received a bonus or windfall recently? Have there been some other pleasant money surprises like a birthday cheque? It’s easy to run out to the shops with cash you haven’t planned on receiving. Instead, you should put all of the money away in a savings pool or a valuable investment plan.
You could struggle with the temptation to inflate your lifestyle when you get surprise cash. Don’t fall for it. Instead, develop a habit of saving any “extras” you get or putting it to work. This will help you build a smart money habit that ultimately ensures a healthier and happier lifestyle.
Create an emergency fund
Emergencies can happen at any time, and it’s vital that you get prepared it as you’re bound to have one at some point in your lifetime. You could lose your job, or you may need to deal with a medical emergency. Perhaps your car suddenly broke down on the highway.
In such situations, emergency funds always come to the rescue. If you don’t prepare for emergencies, your only option will be to use a credit card, which means a new debt.
Track your spending
You can’t build wealth if you don’t have control over your spending. The simple rule here is that you must be earning more than you’re spending over any period, and the best way to do it is to track what comes out of your account.
With financial planning apps, you can be money super-smart 24/7, as it helps you track your spending, letting you know exactly where you used your credit card and on what. You may also choose to just record your daily expenses in a notebook, on your phone, or a computer spreadsheet. Keeping the records on a phone app can make life easier.
Learn to say “no.”
One of the easiest ways to add clutter to your life is to agree to every request you get and take on more than you can handle. You must understand when it is wise to politely say “no”.
Think back on all the situations in which you have said “yes” in the past, and ask yourself if it had some positive results on you in any way, including financially. Did you benefit from it, and did the benefit outweigh the stress it caused? Did it help you achieve any meaningful difference for yourself or someone else you planned it for?
If your answer to most of these questions is “no,” then you should learn to give that answer more often in the future. By deciding to start turning down unprofitable requests, you’ll be able to focus on what is really important to bring you wealth and simplify your life in 2019.