Tag Archives: finance

Good Financial Habits to Improve Your Lifestyle

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Most people know the importance of setting good financial habits and practices that helps them reach their short and long-term life goals.

However, a common mistake many people make when deciding to improve their financial lives is getting ambitious. They may try to follow too many habits and struggle to maintain these financial habits.

What’s the solution to this recurring issue? Tanya Peterson, vice president of brand with Achieve, said to start with choosing just one or two habits. Here are eight financial habits you can set, and follow, each day to improve your overall financial health.

Pay Bills on Time

You might already be practicing this financial habit on a regular basis! Make bill payments on time. Peterson said you can do this by setting up a system. Consider using an app, online calendar or a paper file on your desk that you’ll use consistently to make timely bill payments.

Earn Cash Back Every Day

Earning cash back is a great, effortless way to put a little money back in your pocket. With the Discover® Cashback Credit Card, unlimited by category (unlike many cashback opportunities that are limited to purchases such as food or travel).

Check Accounts Daily

How much do you have in checking and savings? Valerie Moses, senior relationship manager at Addition Financial, said to get into the habit of checking your accounts each day.

There are a few benefits to checking in daily. Moses said you’ll know how much money is available at all times and will be able to avoid overdrawing your accounts. It’s also an easy way to detect any fraud that may have taken place. If you believe something has happened, Moses said you can stop it in its tracks and mitigate its effects. It’s also easier than ever to keep an eye on our finances by using online and mobile banking apps.

Practice Habit Stacking

What is habit stacking and what does it have to do with personal finance? Alvin Carlos, financial planner at District Capital Management, said habit stacking is the practice of attaching a financial habit with an existing habit. This helps to stay focused on the financial habit.

Carlos uses the example that you may check your finances after going for a weekend run or after having coffee on Saturday morning. He also recommends adding a recurring event in your calendar that allows you to review your finances once a month.

Automate Saving 10% From Every Paycheck

As soon as you are able, Peterson said to make saving a habit. Start by saving 10% (more if possible and less if necessary) from each paycheck. 

“Make it a habit by automating, so it doesn’t become a decision on ‘should I or should I not save’ a certain amount,” Peterson said. “Banks and credit unions generally let you arrange automatic withdrawal from your checking account to a savings account. Employers often can do automatic deposit of a portion of a payment into a savings account, too.”

Create and Stick to a Budget

If you don’t already have a budget, it’s time to create one. If you do have a solid budget, continue to keep using it. Moses said that creating and sticking to a budget is one of the best financial habits anyone can implement. 

“Having a budget in place will give you direction on where your money is going and help you make every dollar count,” Moses said.

Remember, however, that every budget looks different depending on the unique needs and priorities of your household. Moses recommends reevaluating your budget regularly to determine what’s working and what isn’t.

Look For Small Ways To Save

Amid inflation and rising cost-of-living expenses, Peterson recommends looking for small ways to save money. Think washing clothes in cold water instead of hot water and creatively making a few meals using what you have in your pantry and refrigerator instead of running out to the store.

“Perhaps small things will seem insignificant, but getting in this habit develops smart spending,” Peterson said. “Small things will add up — and you might find you’re eating and living healthier, too.”

Set Financial Goals

Financial habits made to stick require purpose. Once you know which financial habits you’d like to start using and you’re able to follow through with these habits, Peterson recommends taking time and effort to determine how these habits will allow you to reach short- and long-term financial goals. This includes retiring at a certain age, going on vacation, having time to pursue a hobby or buying a new TV.

Moses said that keeping financial goals in mind also makes it easier to avoid impulse purchases and stick to your budget. Financial goals not only improve your daily life, but set you up for success in the future.

“Once you focus on what you want to do in life, creating the saving and spending habits that will get you there will become infinitely easier,” Peterson said.

Target Cuts Forecast Amid Slumping Profits

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Minneapolis-based Target cut its full-year forecast and reported slumping profits and flat comparable sales growth of 0.2 percent over last year, lower than Wall Street analysts expected. Shares of Target dropped almost 22 percent by midday Wednesday.

The company reduced its annual earnings forecast by about 8 percent even as it heads into the busiest shopping season of the year. Target thrives on shoppers making impulse purchases in discretionary categories such as home, apparel and sporting goods, but the company warned consumers are still feeling pressure on their wallets and are seeking out sales and value.

“The current consumer mood is one that is not aligned in Target’s favor,” Neil Saunders, a managing director of GlobalData, said in an analyst note.

Target’s news also comes on the heels of glowing quarterly results from its fiercest competitor. While Walmart has edged out Target over the past few years thanks to its lower prices, its recent quarterly results showed a stark shift in priorities for consumers of all income levels. The Bentonville, Arkansas-based retailer, which raised its full-year outlook Tuesday, noted shoppers from households earning more than $100,000 made up 75 percent of its market share gains in the third quarter. Walmart said it was seeing positive results in its discretionary categories, suggesting that consumers who may have once browsed those aisles at Target are now trading-down at Walmart.

Walmart also has an edge over Target in the grocery category as consumers battle high grocery prices. In addition to Target having a more limited selection at most stores than Walmart, it also can’t compete on price. The company announced in May that it was lowering prices on 5,000 items, including food and household staples. Target said Wednesday that by the end of the year, it will have cut prices on over 10,000 items.

Same-store sales for Target fell 1.9 percent in the third quarter compared to the same period last year. Total revenue was $25.7 billion, about 1.1 percent higher than 2023, and total sales increased just 0.9 percent. Target chief executive Brian Cornell said Wednesday that the results show that consumers are “shopping carefully as they work to overcome the cumulative impact of multiple years of price inflation.”

Target chief commercial officer Rick Gomez said in an earnings call Wednesday that consumers have become more “resourceful” and deals-focused. For example, Gomez said, sales dipped leading up to the Target Circle week in October that starts the retailer’s holiday shopping push and fell again after.

10 Unusual Tricks for Financial Success Using ChatGPT

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Achieving financial success often requires more than just the basic advice of saving and investing. We’ve asked ChatGPT for some ideas outside of the box to boost savings and wealth. Here are ten unusual but effective strategies that can propel you towards financial prosperity:

Managing your personal finances can be tricky if you don’t have the strategies and guidance you need. Organization, research, planning and funding are all necessary to achieve your financial goals. On Google.com, you can learn about different investment strategies and how to make your money work for you.

If you’re interested in stocks, CD accounts, real estate, investment funds, collecting valuables or any other investment, ChatGPT has the information you need. You’ll find articles that explain the difference between different types of investments, breakdowns of investment methods, advice on what types of investments are most likely to be successful and even entertaining news stories about investing.

So whether you’re planning on making a big investment by purchasing property or you’re preparing to make a smaller investment, ChatGPT can help.

1. Practice Frugality in Unconventional Ways

Challenge conventional spending habits. For instance, embrace a minimalist wardrobe or use public transport instead of owning a car. These unconventional choices can lead to significant long-term savings.

2. Invest in Learning Over Entertainment

Redirect funds typically spent on entertainment towards educational resources or courses. This investment in knowledge can pay off exponentially in terms of career advancement and income opportunities.

3. Automate Savings into an ‘Inconvenience’ Account

Set up an automatic transfer to a savings account at a different bank, ideally one that’s a bit inconvenient to access. The extra effort needed to withdraw funds can deter impulsive spending. And DO NOT take money out of the random business ATM machine. Those habits do not bring on the mindset of achieving financial success.

4. Turn Your Hobby into a Side Hustle

Monetize your passion or hobby. Whether it’s crafting, coding, or cooking, find a way to earn from what you love doing in your spare time. The most profitable people are profiting on the thing they love the most. If you love your product, so will the customer.

5. Embrace Bartering and Trading

Instead of purchasing new items, consider bartering services or goods with friends, family, or local communities. This can be a creative way to get what you need without spending money.

6. ‘Freeze’ Your Credit Card for Emergencies

Literally freeze your credit card in a block of ice. This makes it available for genuine emergencies only and prevents impulsive use.

7. Practice the 30-Day Rule

Delay non-essential purchases for 30 days. Often, the urge to buy dissipates over time, saving you from unnecessary spending. Overtime you realize a lot of the extras you were spending on didn’t have much of an impact on your overall happiness, and will become most likely happier with the amount of discipline and savings you’ve achieved.

8. Rent Out Unused Space or Items

If you have an extra room, parking space, or even seldom-used tools, consider renting them out. This can be a steady source of passive income.

9. Invest in Sustainable Living

Incorporate sustainable practices like growing your own vegetables or installing solar panels. These actions reduce living costs and benefit the environment.

10. Use ‘Gamification’ for Saving

Turn saving money into a game. Set challenges, such as ‘no spend’ days or competing with a friend to save a certain amount each month. This makes the process of saving more engaging and motivating.

Financial success is often a blend of conventional wisdom and creative strategies. By adopting these unusual yet practical methods, you can develop a stronger, more resilient approach to managing and growing your wealth.