9 Good Money Habits You Can Form

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You may have big money goals but the key to achieving them is to build a set of small everyday habits. You can improve your financial situation by taking small steps that gradually become second nature. These are small habits that you can start today to help your money grow.

Automated money transfer into savings

One of the best ways to save is by setting up automatic transfers. You can make a significant impact on your savings goals by setting up automatic transfers to transfer a few dollars each week into your savings account.

Plan your purchases.

Plan your shopping trips instead of just going to the local drugstore and buying a few items. You should make a list of what you are looking to buy and how much. You’ll be more successful at resisting impulse purchases or buying items that you don’t need.

This is true for online purchases as well. You should first determine what you need and how much money you have to spend before you make the purchase. You should wait at least 30 days to add it to your cart if it isn’t an essential item.

Substitutions can save you money

Spend the most money in the areas that are most important to your priorities. Consider economizing on items that you don’t value as much or looking for cheaper alternatives. Don’t forget to enjoy your Roquefort gourmet cheese if you love it. If you don’t care about the brand of peanut butter in your sandwich, go generic.

Be the first to take care of yourself.

A budget is a way to ensure you aren’t spending too much. Pay yourself first if you want your savings to grow. This means that you should put your money towards savings as soon as you receive your paycheck. Then, live off the remainder. You run the risk of not being able to save enough money if you only pay your bills and expenses after you have paid them. This can be done by automatically transferring dollars to a savings account, or by saving a portion of your take-home salary each month.

Transfer your savings to a savings account

You should make sure that the money you save is going to your savings if you are making an effort to save in all areas of your life. It’s easy to spend your savings and go back where you started.

If you have been brown bagging your lunch to work every day, and you are able to save R50 on lunch each day, you can transfer R50 directly into your savings account. You can save R20 by shopping on sales and looking for bargains on the store app. Save R20 by putting it in an account. It will always be there for you when it is needed.

Keep your bonus cash.

You can put aside some money if you are promoted, have a great month of freelancing, get a bonus at work, or receive a raise. You can enjoy some of the extra cash, which is fine. But you should also set aside a portion of it to go towards your savings goals.

Plan for extra money.

Is that change still in your pocket? Put it in a container and set aside a savings goal. You’ll be amazed at how fast those coins accumulate if you empty your jar only a few times per year.

Spend less in one category.

You may feel deprived and thin if you try to save money in all areas of your life. Instead, make a commitment to spend less in one area. Start with the easiest wins. Cut back on spending in areas that aren’t necessary. You can likely cancel your gym membership if you have recently joined a sport league. To save money, you might consider purchasing a pass to the nearby pool.

It’s also possible to start saving in areas that you enjoy spending. Let’s suppose you are a weekend warrior who loves Sunday brunch with friends. You don’t have to be picky about what you keep in your fridge. Start by cutting down on grocery shopping for the month.

Track your financial progress.

Each month, set aside time to track your progress towards your money goals. What percentage of your debt are you paying off? How much progress have you made in saving for a downpayment on a house or for a dream vacation next year? You will be more motivated to stay on track if you see the results. It will help you stay on track and increase your motivation to save more.

You can learn more about money habits by visiting Once a Week Blog.