Tag Archives: Finances

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.

How to survive financially as a single mom

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Being a single mom can be one of the toughest jobs out there. Juggling the responsibilities of parenting and running a household while also trying to make ends meet can be a daunting challenge. But with some thoughtful planning and careful budgeting, it’s possible for single moms to keep their heads above water, financially.

Here are a few tips and strategies for surviving financially as a single mom:

1. Create a budget

One of the most important things that single moms can do to manage their finances is to create a budget. This involves tracking all of your income/ expenses and setting realistic goals for your spending. Look for areas where you can cut back, such as eating out less or shopping for groceries more carefully and try to stick to your budget as closely as possible.

2. Find ways to increase your income

If you’re struggling to make ends meet, you may need to find ways to earn more money. This could involve taking on a second job or freelance gig, selling items you no longer need, or negotiating a raise or promotion at your current job.

3. Utilize government assistance programs

There are a number of government assistance programs available to single moms, such as food stamps, housing assistance, and childcare subsidies. Be sure to research these programs and see if you qualify – they can go a long way toward alleviating financial stress.

4. Look for ways to save on bills

Cutting back on your monthly bills can help free up more money for other expenses. Look for ways to save on utilities, such as turning off lights and unplugging electronics when they’re not in use. You can also save on your phone and internet bills by shopping around for better deals.

5. Build an emergency fund

Having an emergency fund can be a lifesaver when unexpected expenses arise, such as a car repair or medical bill. Try to save at least three to six months’ worth of living expenses in a savings account.

Surviving financially as a single mom can be tough, but with persistence and smart planning, it’s possible to thrive. By creating a budget, finding ways to increase your income, utilizing government assistance programs, saving on bills, and building an emergency fund, you can set yourself up for financial stability and success.